Sirwin
Sirwin

SPAC IN FOCUS: Roth CH Acquisition V


  • Name: Roth CH Acquisition V
  • Ticker: ROCL (NASDAQ)
  • Securities: Units (1 share and 1/3 warrant), common stock, warrants
  • Trust Size: $115 million
  • Target Industry: "business services, consumer, healthcare, technology, wellness or sustainability sectors"
  • IPO Date: December 1, 2021
  • Deadline: June 1, 2023 (18 months from IPO)

Past Successful Combinations

This is Roth Capital's fifth SPAC, having previously successfully closed three prior deals:

  • Roth CH Acquisition I combined with recycling tech company PureCycle Technologies in 2021 for a deal worth $826 million
  • Roth CH Acquisition II combined with independent music company Reservoir Media in 2021 for a deal worth $788 million
  • Roth CH Acquisition III combined with infrastructure provider QualTek in 2021 for a deal worth $828 million

It goes without saying that past performance is no guarantee of future results, but it's encouraging to know that this SPAC management team has successfully closed three deals in the past year.


SPAC Liquidations Continue

E.Merge Technology Acquisition Corp. (NASDAQ: ETAC) announced yesterday that it would liquidate its trust, citing an inability to complete a business combination. The ETAC securities are expected to cease trading on September 4, 2022. The warrants have hit sub-penny status and all common stock will be redeemable for $10.06/share, 6 cents above the $10 IPO price.

It's gotten so bad in SPAC-Land that ICR, a leading advisory firm for blank-check deals in the past two years, has launched its own SPAC liquidation communication service. ICR has worked on more than 120 deals since 2021. 

So while these two events may seem very bearish for SPAC deals in general, perhaps it makes Roth's experience even more important.


Concurrent Search with ROCG

Roth Capital also has a fourth SPAC actively searching for a target, ticker ROCG on the NASDAQ exchange. This one is also a $115 million size trust and has units/warrants. 


Money Talks

Aside from sponsor shares, there is a serious monetary incentive for both Roth and Craig-Hallum to get a deal done.

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With both Roth and Craig-Hallum searching out a target company & sponsor shares and $5 million on the line, it seems like a pretty good bet a deal will be made. The question on investors' minds is when does a deal get done and how does a company get fairly valued in unfavorable market conditions? 


Nothing in this blog post should be interpreted as any kind of financial advice. Always perform your own due diligence when investing.

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