Daily Archives: June 2, 2021

Ignyte Acquisition Corp. (NASDAQ:IGNYU) (the "Company") today announced that on May 28, 2021 it received a notice from Nasdaq Regulation indicating that, as a result of not having timely filed its Quarterly Report on Form 10-Q for the period ended March 31, 2021 (the "Form 10-Q"), the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of all required periodic financial reports with the Securities and Exchange Commission (the "SEC").

The Nasdaq notice has no immediate effect on the listing or trading of the Companys units, Class A ordinary shares or warrants on the Nasdaq Capital Market. The Notice provides that the Company must submit a plan to regain compliance with Nasdaq Listing Rule 5250(c)(1) by July 26, 2021. If the plan is accepted by Nasdaq, then Nasdaq can grant the Company up to 180 calendar days from the due date of the Form 10-Q, or November 22, 2021, to regain compliance.

As the Company reported in its Form 12b-25 filed with the SEC on May 17, 2021, the Company is working diligently to complete the Form 10-Q as soon as possible; however, given the scope of the process for evaluating the impact on the Companys financial statements of the Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies ("SPACs") issued by the staff of the SEC on April 12, 2021, the Company is not in a position to file the Form 10-Q until after the completion of this process.

This press release contains statements that constitute "forward-looking statements." Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company's registration statement and prospectus for its initial public offering filed with the SEC. The Company undertakes no obligation to update these statements for revisions or changes after the date of this press release, except as required by law.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20210601005937/en/

Contacts

David RosenbergCo-Chief Executive OfficerIgnyte Acquisition Corp.drosenberg@ignytespac.com

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Ignyte Acquisition Corp. Receives Notification of Deficiency from Nasdaq Related to Delayed Filing of Quarterly Report on Form 10-Q - Yahoo Finance

SoFi's (SOFI) long-awaited IPO on Tuesday isn't the first time CEO Anthony Noto has had a splashy deal day.

Noto is a former tech analyst and investment banker at Goldman Sachs who spent more than 12 years at the firm (1999 to 2008, then a return from 2010 to 2014 after a stint in between as the NFL's CFO). He played a key role in Twitters IPO while at Goldman he then joined CEO Jack Dorsey at the company as chief operating officer for an almost four-year period.

Given that extensive dealmaking experience and the uncanny sense of the market that comes with it it should't be a surprise that Noto opted for a clever SPAC transaction to finally bring SoFi public.

"The vehicle for us [SPAC] was a unique way for us to achieve private capital and have certainty of the deal closing, and in addition to going public and having it all in one packaged product," Noto said on Yahoo Finance Live. "We had a unique circumstance in that we had a significant amount that was preferred stock and the IPO wasn't the most easiest and cost efficient way to convert the preferred into common stock, which was necessary for us to apply for a bank license and to be able to go public."

SoFi essentially merged Tuesday with blank check company Social Capital Hedosophia, backed by well-known venture capital investor and SPAC fan Chamath Palihapitiya.

But since SoFi announced the transaction back in early January, SPACs have come under considerable fire from investors and regulators for their skirting of the transparency inherent to a traditional IPO process. The company's that have arrived to market via SPAC have also been attacked for their eye-popping losses, suspect disclosures and insane forward-looking projections (see electric vehicle maker Lordstown, for example).

And investors have made their concerns about SPACs heard.

The SPAC and New Issue ETF (SPCX) an investment vehicle that invests most of its net assets in SPACs has plunged 15% from its late February record high. Individual companies that have come to market via SPAC in recent months have fallen even harder for instance, electric vehicle maker Nikola (a 2020 SPAC) has crashed 46% from its latest January high amid concerns on its viability from short-seller Hindenburg Research.

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"I think with the evolution of any new financing vehicle there is a cycle that ensues where there is a lot of interest in that cycle and you have a broad-based number of participants that come in. And then there is often a shakeout. Ultimately quality emerges from that shakeout, and it becomes more narrow of an opportunity that will persist over time," Noto explains of the 2021 SPAC sell-off.

LOS ANGELES, CALIFORNIA - SEPTEMBER 15: SoFi CEO Anthony Noto looks on before the game between the Los Angeles Rams and the New Orleans Saints at Los Angeles Memorial Coliseum on September 15, 2019 in Los Angeles, California. (Photo by Sean M. Haffey/Getty Images)

SoFi has several things in its favor unlike other recent SPACs, which probably explains why the stock spiked 7% in its trading debut Monday.

First, is an experienced executive team run by Noto. Two, is a credible board of directors with a mix of tech and investment banking experience. The SoFi board will soon be getting a knowledge boost via the arrivals of Noto friends in former Goldman Sachs president and COO, Henry Schwartz, and former Twitter CEO Dick Costolo.

And finally, SoFi has a real business that is delivering actual financial results in 2021 as Noto has expanded into stock investing, crypto investing, IPO investing and other financial services since arriving as CEO in 2018. Previously, SoFi was just known as a school loan refinancer.

SoFi's first quarter sales rose 151% year-over-year to $216 million. The company posted its third straight quarter of adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] profits. The number of members on the platform have grown at an accelerated growth rate for seven consecutive quarters.

For 2021, SoFi forecasts sales of $980 million and adjusted EBITDA of $27 million.

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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Why SoFi's dealmaking CEO went the SPAC route for its IPO - Yahoo Finance

TipRanks

When the best talk, people listen. It works in all walks of life, but especially the stock market. Investors are keen to read the latest stock reviews from Wall Streets professional analysts, but knowing whos the best is the place to start. Covering the markets for investment firm and brokerage Oppenheimer, Colin Rusch has built a reputation that puts him at the top of the Streets analyst corps. Hes currently rated #7 overall by TipRanks, out of more than 7,500 analysts offering regular coverage of the markets. Ruschs ranking is based on more than 400 published reviews, that have accumulated a 63% success rate and an investor following Ruschs recommendations in the past year would have seen a 64% average rate of return. So, lets catch up with some of Ruschs recent stock notes. Using the TipRanks platform, weve looked up two calls of his and two factors popped out right away: these are Buy-rated stocks with more than 100% upside potential for the year ahead. And for the retail investor, seeking a bargain in the markets, the low point of entry sweetens the pie; each of these stocks is trading for less than $10 per share. Here are the details. Aeva Technologies (AEVA) Well start with Aeva Technologies, a company working in the field of perception and sensing technology an essential field in the autonomous automobile industry. Aevas main project is the development of 4D LiDAR-on-chip, an achievement which will turn sensing systems on their head by combining silicon photonics, precision velocity measurement, and long-range performance. The resulting package will enable faster and more accurate sensing in driverless vehicles, for better detection and avoidance of obstacles, whether stationary of mobile. Success in this endeavor will give Aeva a clear path forward to success in the autonomous car field. Back in March, Aeva entered the public trading markets through a SPAC transaction with InterPrivate Acquisition. The merger completed on March 15, and AEVA shares started trading on the NASDAQ on that day. In sharp contrast to last year, SPACS have generally had a hard time in 2021s stock market, and so has Aeva; the shares have slipped since the public debut. However, AEVA stock hit its trough in mid-May and has been regaining value in the last couple of weeks, after the company released its 1Q21 earnings results the first as a publicly traded entity. At the top of the earnings release, Aeva announced that its SPAC merger had netted the company $513 million, and that it had $523 million in cash reserves available at the end of Q1, compared to just $24.6 million at the end of 2020. In a key development update, Aeva revealed that its third generation LiDAR chip is in its final architecture and has integrated all of the core LiDAR components. The company is engaged in setting up production lines for the new chip. In his coverage of AEVA shares, Colin Rusch writes, AEVA continues to make tangible progress toward commercializing its FMCW-based 4D lidar announcing its ability to offer 500m range on existing hardware via a firmware upgrade. We believe the flexibility and potential future proofing of systems enabled by its software defined architecture combined with the velocity information is critical for its customers and the potential for product improvement during its useful life. We are encouraged by AEVA delivering its Gen 3 chip design ahead of schedule. We continue to see AEVA as a long-term winner in the lidar and autonomous space Rusch rates this stock as Outperform (i.e., a Buy), and his $20 price target implies it has room for 104% growth in the next 12 months. (To watch Ruschs track record, click here.) Wall Street generally is even more bullish here than Rusch is. The Strong Buy analyst consensus rating is unanimous, based on 5 recent reviews, and the $23.40 average price target suggests a robust 139% upside potential from the trading price of $9.76. (See Aevas stock analysis at TipRanks.) Aqua Metals (AQMS) Our modern world has brought us technological marvel but also an enormous level of industrial pollution. Among the worst pollutants is lead. Lead has been used in a wide range of products, most notably in pipes and batteries, from which it can leach into the environment and then into us where its toxic effects are proven dangerous. This makes lead one of the most recycled materials in the world today. Aqua Metals specializes in clean recycling technology for lead acid batteries. The company uses its proprietary AquaRefining process a water-based, room temperature lead refining process that is non-polluting to replace the current system of high-temperature lead smelting. Such lead smelting is one of the worlds most polluting industries. Aqua Metals has a huge potential market, as some 80% of the lead used in the battery industry is recycled. While dangerously toxic, these batteries are going to be with us for at least the foreseeable future, as lead acid batteries are also the only 100% recyclable and rechargeable batteries on the market. The company is working to expand its niche, and it has applied, earlier this year, for patents in the field of lithium ion battery recycling. Where lead acid batteries are heavily used in industrial applications, lithium ion batteries are ubiquitous in electronics and they contain of host of other toxic metals, such as cobalt, nickel, and manganese. Aqua Metals hopes to apply its refining technology to these batteries, as well. Aqua Metals processes are not yet in operational use, and so the company has no revenues and earnings to speak of. In the first quarter of 2021, Aqua Metals reported a net loss of $4.1 million, coming to 6 cents per share, compared to the $4.4 million, 7-cent per share, net loss reported in the year-ago quarter. Also in 1Q21, Aqua Metals invested $1.5 million in the LINICO Corporation, another cleantech company in the lithium ion battery recycling niche. Rusch is bullish on this speculative company, writing of it, We continue to believe AQMS' closed loop zero-emissions process technology for recycling lead is a critical enabler for portions of the battery supply chain to reach net-zero emissions and has the potential to become the de facto standard process for recycling lead as the world moves toward net-zero commitments in 2040. We are looking at the announcement of a license and equipment supply agreement as the next, and critical, validation of the business model. The 5-star analyst gives AQMS an Outperform (i.e., Buy) rating, along with a $7 price target that implies a one-year upside of 147%. Both recent reviews on AQMS shares are positive, giving the stock its Moderate Buy consensus rating. The trading price is $2.83, and the average price target of $7.50 suggests a strong 165% upside from that level. (See Aqua Metals stock analysis at TipRanks.) To find good ideas for stocks trading at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that unites all of TipRanks equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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The economy will probably overheat this summer: top strategist - Yahoo Finance

For more business and finance explainers, check out our Yahoo U page.

Can an economy pop from too much stimulus? Thats the concern behind overheating, a term thats been the center of economic debate as the $20 trillion U.S. economy re-opens and recovers from the COVID-19 pandemic.

With trillions in stimulus coming from both the federal government and the U.S. central bank, some are concerned that the economy will grow too fast and spur unwanted levels of price inflation.

As Treasury Secretary Janet Yellen once said, expansions dont die of old age.

Overheating is one way for an economic expansion to end. There is no official economic definition for overheating. But one oft-cited indicator of overheating is inflation, or rising prices.

In a healthy economy, unemployment should fall (as people find jobs) and GDP should rise (as economic activity grows). Employed and with income, consumers will demand goods and services.

Producers may adjust prices to capitalize off of the increased demand (and pay for any associated increases in production). In turn, employees of those producers may ask for pay raises that net them more income. Those households can then demand more goods and services, rounding the cycle of wages and prices.

An illustration of a wage-price spiral.

In an overheating economy, this loop repeats several times, leading to rounds of markups in prices and fueling runaway inflation. The so-called wage-price spiral was one of the factors in double-digit price inflation in the 1970s, the most notable example of economic overheating.

Runaway prices can quickly erode the purchasing power of a household. But its not the inflation itself that causes a recession.

To tame the hyperinflation beast, then-Federal Reserve Chairman Paul Volcker dramatically lowered the money supply and ratcheted up short-term borrowing costs, triggering a sharp pullback in economic activity.

The worry is that runaway inflation will again force the Federal Reserve to pump the brakes to dampen inflationary pressures, raising interest rates in a way abruptly ends the recovery.

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Economists have different definitions on what level of inflation constitutes overheating.

One challenge is parsing out true inflationary pressures from those that may be temporary or transitory.

If inflation is rising because of short-term constraints that are likely to fade in a few months, high inflation readings may not be of much concern to policymakers.

But if inflation is due to the wage-price spiral, a deeper, more entrenched dynamic may be at play.

This is why it is difficult to say that a reading of 4% or 5% year-over-year inflation means overheating, since it is all about the persistent nature of the price pressures leading to those readings.

Fed officials have leaned into the transitory side of the debate, saying they expect inflation readings to rise as a result of measurement effects and bottlenecks in the international supply chain.

The Bureau of Economic Analysis publishes the Personal Consumption Expenditures Index, a major source of inflationary data. Since the last crisis, year-over-year inflation in the PCE index have been low compared to growth rates seen in decades before that. Source: Bureau of Economic Analysis

The Fed has also taken note of the fact that inflation has been persistently low since the last crisis, which explains their new framework that will tolerate inflation moderately above its 2% target.

In other words, high monthly inflation readings in the early months of the pandemic recovery are not of immediate concern to policymakers.

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When is an economy overheating: Yahoo U - Yahoo Finance

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More and more support has been developing for a fourth and possible fifth stimulus check amongst members of Congress.

See: $1,400 Stimulus May Be on the Way This Time From Your StateFind: New Stimulus Perk Helps Pay for Your WiFi and Laptop

In a new letter to President Joe Biden, seven members of the influential Ways and Means Committee have joined fellow members of Congress who support additional stimulus checks.

It claims that that the American Rescue Plans checks alone will keep 11 millions people out of poverty this year, with unemployment insurance expansion and other provisions in the bill accounting for another five million people.

A fourth and fifth stimulus check could keep an additional 12 million out of poverty, the legislators claim. They also stated that the combined effects of Bidens new bill and new stimulus checks could reduce the number in poverty this year from 44 million to 16 million.

The lawmakers defended their request for more stimulus money saying that not only do the checks help keep families and workers out of poverty, but they act as an economic stimulus by increasing spending and supporting jobs.

However, new reporting by the Boston Herald released yesterday might weaken this particular argument. Through data obtained from Internal Revenue Service records, they reported that a staggering 1.24 million stimulus checks remain unspent from the first coronavirus-era bailout. That is an estimated $1.7 billion unaccounted for based on the max $1,200 per household that was distributed.

See: Child Tax Benefits Will Start Hitting Accounts July 15Find: Student Debt Forgiveness Dropped From Bidens Annual Budget

The unspent checks are not lingering bank accounts though; they are from people who either refused to accept, paid back or not cashed the stimulus checks they received from the IRS as a result of the CARES Act that was signed into law on March 27, 2020, according to the data provided from the IRS.

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The Boston Herald noted that the IRS data shows California as leading the country with 123,265 stimulus checks left unspent, Florida coming in second with 92,018 checks and Texas, New York and Pennsylvania rounding out the top five.

The Committee for a Responsible Federal Budget took a different stance. They stated their data, which is based on Congressional Budget Office estimates, concludes that some of the money has not been spent due to slow or low demand and that data is either publicly unavailable or has a long lag time.

This combined information could hinder a push by legislators to put two more stimulus checks on the table, as the data could suggest that the checks are being utilized as more of a safeguard rather than a necessity to uplift the economy.

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This article originally appeared on GOBankingRates.com: Two New Stimulus Checks May Be on the Way Heres Everything You Need to Know

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Two New Stimulus Checks May Be on the Way Heres Everything You Need to Know - Yahoo Finance