SoftBank files for a double scoop of SPAC – TechCrunch

The SPAC craze continues unabated, and at times new SPACs are filed with the SEC almost every hour.

SoftBank, the Japanese telecommunications conglomerate that also manages the gigantic Vision Fund and its successor, doesn’t want to be left out. Two consecutive SPAC registrations were filed yesterday for two new blank check companies.

SVF Investment Corp 2 costs $ 200 million and SVF Investment Corp 3 is a $ 350 million vehicle. Both SPACs have a standard over-allotment option of around 15% which means their final sizes will likely be around $ 230M and $ 400M, respectively, assuming the underwriters choose their option (number three has a slightly smaller over-allotment option, if you’re ‘I’ll check my math.

An interesting component of both SPACs is that they have what is known as a forward purchase agreement in connection with SoftBank’s Vision Fund 2. This agreement allows the second Vision Fund to buy shares in these SPACs when they begin their business combinations essentially with their target startups giving the right to participate in the mergers. The Vision Fund has a $ 100 million agreement with SVF 2 and a $ 150 million agreement with SVF 3.

As with all SPACs, a registration statement is merely a filing with the intent to raise funds, although nowadays the vast majority of filings are made later.

As can be seen from the numbering, SoftBank had a previous SPAC that it filed in December and officially closed on January 7th of this year. This vehicle targeted a total of $ 604 million in fundraising, including the underwriters’ over-allotment option. It also included a $ 250 million forward purchase agreement with the second Vision Fund, similar to those of these last two vehicles.

What are these SPACs looking for? The filing states: “We intend to identify, acquire and manage a company in a technology-based sector where our management team has differentiated experience and insight. Relevant sectors can include, but are not limited to, mobile communications technology, artificial intelligence, robotics, cloud technologies, software in general, computational biology and other data-driven business models, semiconductors and other hardware, transportation technologies, consumer internet, and financial technology. ”

That seems to cover a lot, but just in case the filing says, “We can still do a transaction with a company in a different or related industry.” So basically everything.

There is still no timetable for when the SPACs could possibly close, but the typical time is 4 to 8 weeks with market averages.

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