Kanders Acquisition Company SPAC Pulls its $400 Million IPO

The November 14, 2008 withdrawal of Kanders Acquisition Company (KAC) from SEC registration marks yet another casualty of the market's lack of appetite for SPAC IPOs. Even more telling about the general market environment is the end of this eponymous SPAC from a serial SPAC entrepreneur:

Warren B. Kanders, Director and Chairman of KAC is also a director of Highlands Acquisition Corp., a $138 million SPAC focused on the health care industry that is still looking for an acquisition target. Mr. Kanders was formerly the President of Kanders & Company, Inc. which sold Armor Holdings, Inc., a manufacturer and supplier of military vehicles, armed vehicles and safety and survivability products to BAE Systems plc on July 31, 2007.

KAC, which has been on file since October 24, 2007, was set to price its $400 million IPO on the American Stock Exchange with a sponsor purchase of 6,000,000 warrants at $1.00 per warrant and commitment to a limit order of up to $25 million of common stock around the time of target acquisition.

Citi, Wachovia and WM Smith Securities were set to underwrite the offering.

Click here for the release

Chardan 2008 China Acquisition Corp. Prices $55 Million IPO on Nasdaq (The First Ever) to Target Chinese Company Acquisitions

On August 12, 2008, Chardan Capital Markets has priced its fourth SPAC on the Nasdaq, selling 6,875,000 units at $8.00 each which will trade under the ticker symbol CACAU. This is the first SPAC in history to be filed on, then priced initially on the Nasdaq.

As mentioned previously, Kerry Propper, the owner and chief executive officer of Chardan Capital Markets LLC (formerly known as Gramercy Group), a New York based broker-dealer, has helmed three other SPACS thus far, raising nearly $100 million since his first $25 million SPAC in 2004, Chardan China Acquisition Corp.

This was followed by two SPACs with acquisition territories divided by the Yangtze River priced on the same day in May 2005, Chardan South China Acquisition Corp and Chardan North China Acquisition Corp.

The company will have to effect a business combination within 18 months after the IPO (or within 30 months from the consummation of the IPO if a letter of intent, agreement in principle or definitive agreement has been executed).

Click here for the final prospectus