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Mergers & Acquisitions

B. Riley Registers New SPAC

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Published: April 24th, 2020
The Los Angeles investment bank has returned to the special purpose sector sponsoring its second SPAC, B. Riley Principal Merger Corp. II.

Investment bank B. Riley Financial Inc. (BRY) has registered its second special purpose acquisition company after the first one closed a $414 million deal.

B. Riley Principal Merger Corp. II filed its draft registration last month and the registration went official April 23. The SPAC hopes to raise $230 million to chase an acquisition with an enterprise value of $400 million to $1 billion.

B. Riley’s first SPAC, B. Riley Principal Merger Corp., completed a business combination with Alta equipment Group Inc. (ALTG) in February.

The Los Angeles-based investment bank became the first SPAC to register since Covid-19 put the IPO market into a cold snap. The new SPAC is also part of a recent trend that has investment bank moving beyond their traditional roles as underwriters for special purpose acquisition IPOs into sponsoring the vehicles.

Over the last 18 months Goldman Sachs & Co. (GS), Chardan Capital Markets LLC along with Roth Capital Partners LLC and Craig-Hallum Capital Group LLC have all backed their own SPACs.

B. Riley’s latest SPAC entry has some commonality with its initial vehicle.

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