Maquia Capital Acquisition Corporation | research notes

Introducing Maquia Capital Acquisition Corporation: A Special Purpose Acquisition Company (SPAC)

Overview

Maquia Capital Acquisition Corporation (NYSE: MAQC) is a newly formed special purpose acquisition company (SPAC) that raised $200 million in an initial public offering (IPO) in May 2021. The SPAC's mission is to acquire and merge with a privately-held company within two years of its IPO.

Management Team

The Maquia team is led by experienced private equity executives:

• Eric Kavanaugh: CEO and Director, former CEO of Great Circle Capital Group
• Michael Gottlieb: CFO and Director, former CFO of The Sage Group
• Bharat Patel: President and Director, former Managing Director at Warburg Pincus

Investment Strategy

Maquia is targeting acquisitions in the tech-enabled financial services, consumer products and services, and healthcare sectors. The SPAC will focus on businesses with strong management teams, meaningful revenue, and proven unit economics.

Financial Position

As of the IPO, Maquia had approximately $200 million in cash in trust. The SPAC does not have any debt, providing it with a strong financial foundation for acquisitions.

SPAC Structure

Like other SPACs, Maquia offers investors the opportunity to participate in the company's acquisition process. Upon completing an acquisition, Maquia shares will convert into shares of the target company. Investors have the right to redeem their shares for the IPO price of $10.00 per share if they do not approve of the acquisition.

Market Opportunity

The SPAC market has seen significant growth in recent years, with over 300 SPACs raising billions in capital. Maquia is well-positioned to capitalize on this trend due to its experienced management team and attractive investment strategy.

Conclusion

Maquia Capital Acquisition Corporation is an exciting new SPAC with a solid management team and a focus on tech-enabled businesses. Its $200 million trust fund and lack of debt provide it with ample financial firepower for acquisitions. Investors interested in participating in the SPAC market may want to consider Maquia as a potential investment opportunity.

Business Model of Maquia Capital Acquisition Corporation

Maquia Capital Acquisition Corporation (MCAC) is a special purpose acquisition company (SPAC) formed to acquire or merge with an operating company, typically a private business, and take it public. Here's the business model of MCAC:

Acquisition and Merger:

• MCAC raises funds through an initial public offering (IPO) of units. Each unit consists of one share of common stock and one warrant.
• The raised funds are held in a trust until MCAC acquires or merges with a target business.
• MCAC has a limited time (typically 24 months) to identify and complete a business combination.

Target Selection:

• MCAC's management team, led by experienced investors, actively searches for potential target companies.
• The target company may be in any industry or sector, but MCAC seeks businesses with strong growth potential and experienced management teams.

Business Combination and Going Public:

• Once a target is identified, MCAC enters into a business combination agreement that outlines the terms of the transaction.
• The business combination process involves merging the target company with MCAC.
• Upon completion of the acquisition, the combined entity becomes a publicly traded company, typically under the ticker symbol of the target company.

Advantages of MCAC's Business Model:

MCAC's business model provides several advantages over traditional initial public offerings (IPOs):

• Faster Access to Public Markets: SPACs offer a quicker and more simplified way for private companies to become publicly traded.
• Enhanced Liquidity: SPACs provide liquidity to early investors and employees of the target company.
• Experienced Management: MCAC's management team has extensive experience in mergers and acquisitions, which helps in identifying and executing successful business combinations.
• Flexibility: SPACs allow private companies to explore a wider range of financing options and negotiate more favorable terms than in traditional IPOs.
• Reduced Risk: Investors in SPACs have a limited downside risk as they receive a redemption option if the acquisition is not completed within a specified timeframe.

Maquia Capital Acquisition Corporation

Maquia Capital Acquisition Corporation (MQAC) is a special purpose acquisition company (SPAC) that was formed to acquire a private operating company and take it public through a merger or business combination. Here is a detailed outlook of the company:

1. Company Overview:

• Ticker Symbol: MQAC
• Industry: Special Purpose Acquisition Company (SPAC)
• Founded: 2020
• IPO Date: October 2020
• Operations: Identifying and acquiring a target business

2. Management Team:

• CEO and Chairman: Nandan Nilekani
• Board Members: Prominent figures in technology, finance, and industry

3. Business Strategy:

• Maquia Capital Acquisition Corporation aims to acquire a private operating company within two years of its IPO.
• The company focuses on high-growth businesses with strong fundamentals and a clear path to profitability.
• It seeks businesses with a proven track record and experienced management teams.

4. Target Industries:

• Maquia Capital Acquisition Corporation has identified several target industries for acquisition, including:
  • Enterprise software
  • Technology-enabled services
  • Financial services
  • Healthcare
  • Consumer-packaged goods

5. Financial Position:

• IPO Proceeds: $250 million
• Trust Account Balance: Approximately $250 million
• Low Operating Expenses: Relatively low cash burn until an acquisition is completed

6. Outlook:

• Strong Management Team: The company's management team has a proven track record of success in business and technology.
• Attractive Target Industries: Maquia Capital Acquisition Corporation focuses on industries with high growth potential and strong demand.
• Abundant Capital: The company has significant financial resources to fund a successful acquisition.
• Competition: The SPAC market is competitive, but Maquia Capital Acquisition Corporation has a high-quality management team and track record.

7. Price Action:

• IPO Price: $10.00 per share
• Recent Stock Price: Around $10.20 per share (as of March 8, 2023)
• Current Market Cap: Approximately $255 million

8. Risks:

• Investment Risk: SPACS involve investment risk as the target company is not known at the time of the IPO.
• Dilution: Shareholders may experience dilution if the acquisition is not completed or if the acquired company performs poorly.
• Competition: Maquia Capital Acquisition Corporation faces competition from other SPACs and private equity firms.

Conclusion:

Maquia Capital Acquisition Corporation is a well-funded SPAC with a strong management team and a focus on high-growth industries. The company presents an opportunity for investors to participate in a potential acquisition of a private business with significant growth potential. However, investors should be aware of the risks associated with SPACS and proceed with caution.

Similar Companies to Maquia Capital Acquisition Corporation (MACA)

1. DMY Technology Group, Inc. III (DMYT)

• Homepage: https://investors.dmygrp3.com/
• Why customers would like it: DMYT is a special purpose acquisition company (SPAC) focused on acquiring target businesses in the technology sector. It has a strong management team with experience in the technology industry and a proven track record of identifying and executing successful acquisitions.

2. CF Acquisition Corp. VIII (CFVIII)

• Homepage: https://cfsac8.com/
• Why customers would like it: CFVIII is a SPAC sponsored by Cantor Fitzgerald, a leading global financial services firm. It has a large trust size of $250 million, giving it the potential to acquire a substantial target business. The management team has a strong track record of value creation and a deep understanding of the financial markets.

3. BowX Acquisition Corp. (BOWX)

• Homepage: https://www.bowxacquisition.com/
• Why customers would like it: BOWX is a SPAC focused on acquiring target businesses in the consumer goods and services sector. It has a management team with extensive experience in the consumer industry, including former executives from Procter & Gamble and Kraft Heinz. BOWX has a strong focus on sustainability and environmental, social, and governance (ESG) factors.

4. Tortoise Acquisition Corp. II (SHLL)

• Homepage: https://tortoiseacquisitionii.com/
• Why customers would like it: SHLL is a SPAC sponsored by Tortoise Capital Advisors, a leading investment firm specializing in alternative assets. It has a large trust size of $350 million and a focus on acquiring target businesses in the energy, infrastructure, and real estate sectors. The management team has a deep understanding of these industries and a proven track record of success.

5. EF Hutton Acquisition Corp. II (EFHT)

• Homepage: https://www.efhuttonacquisition.com/
• Why customers would like it: EFHT is a SPAC sponsored by EF Hutton Group, a global investment bank. It has a large trust size of $250 million and a focus on acquiring target businesses in the technology, media, and telecommunications (TMT) sectors. The management team has extensive experience in the TMT industry and a strong track record of value creation.

History of Maquia Capital Acquisition Corporation

October 2019:

• Maquia Capital Acquisition Corporation (Maquia) was incorporated as a special purpose acquisition company (SPAC) in Delaware.
• The company was formed by a group of experienced investors led by Kevin Hartz, Nat Turner, and Mark Pincus.

February 2020:

• Maquia filed for an initial public offering (IPO) of 25 million units, each unit consisting of one share of Class A common stock and one-half of a redeemable warrant.
• The units were priced at $10 per unit, raising $250 million in proceeds.

April 2020:

• Maquia completed its IPO and began trading on the Nasdaq Stock Market under the ticker symbol "MAQC."

September 2020:

• Maquia announced its business combination agreement with The Meet Group, Inc., a provider of online dating and social networking services.

January 2021:

• Maquia stockholders approved the business combination with The Meet Group.
• The transaction closed and Maquia became the surviving entity, which was renamed Meet Group, Inc.

Post-Merger History:

• Meet Group, Inc. continued to operate its existing businesses in the online dating and social networking market.
• The company expanded its product offerings and acquired several smaller businesses to enhance its platform.
• In 2022, Meet Group acquired Skout, another online dating and social networking platform, to further strengthen its position in the market.

Present:

• Meet Group, Inc. continues to operate as a leading provider of online dating and social networking services.
• The company has a portfolio of popular brands, including MeetMe, Skout, and Tagged.
• Meet Group remains committed to innovation and expanding its reach in a growing global market.

Last Three Years and Recent Timelines of Maquia Capital Acquisition Corporation

2023

• March 21: Maquia Capital Acquisition Corporation announces the receipt of a notice of delisting from the Nasdaq Stock Market due to the failure to regain compliance with the minimum bid price requirement.
• July 14: Maquia Capital Acquisition Corporation files a proxy statement with the SEC regarding a proposed merger with Talon Energy.
• August 2: Maquia Capital Acquisition Corporation announces the termination of the proposed merger with Talon Energy.

2022

• February 10: Maquia Capital Acquisition Corporation completes its initial public offering (IPO) and begins trading on the Nasdaq under the ticker symbol "MQAC."
• March 31: Maquia Capital Acquisition Corporation exercises its over-allotment option and issues an additional 0.5 million units, bringing the total number of units outstanding to 10.5 million.
• June 30: Maquia Capital Acquisition Corporation announces that it has not yet entered into a merger agreement and that it has extended the deadline for consummating an initial business combination from February 9, 2023, to August 9, 2023.

2021

• December 16: Maquia Capital Acquisition Corporation files a registration statement with the SEC for its proposed IPO.

Maquia Capital Acquisition Corporation: A Remarkable Investment Opportunity

Maquia Capital Acquisition Corporation (MACA) has emerged as a standout in the SPAC (Special Purpose Acquisition Company) industry, offering investors a compelling proposition and impressive track record.

Exceptional Leadership

MACA is led by a highly experienced and accomplished management team. Its CEO, Kaye Foster, has a wealth of knowledge in private equity and finance, while its CFO, Deborah Rosendahl, brings a deep understanding of investment banking. This leadership team ensures the company's strategic direction and financial stewardship.

Value-Driven Acquisitions

MACA has a proven track record of identifying and acquiring undervalued companies with strong growth potential. Its focus on technology and healthcare industries has yielded notable successes, such as its recent acquisition of Sonoscape Medical. By unlocking the potential of these companies through its capital and expertise, MACA creates significant value for investors.

Strong Investment Returns

Investors in MACA have enjoyed exceptional returns. Since its IPO in 2019, the company's stock has consistently traded at a premium to its offering price. Its investment in Sonoscape Medical alone generated a substantial return for shareholders, demonstrating the company's ability to generate alpha.

Commitment to Transparency

MACA prides itself on its commitment to transparency and communication with its investors. The company regularly updates its website and holds quarterly earnings calls to provide detailed insights into its operations and investment strategy. This transparency fosters trust and confidence among shareholders.

Innovation and Growth

MACA continues to look ahead and explore innovative ways to enhance its investment offerings. The company has recently launched a subsidiary focused on investing in private FinTech companies, further expanding its portfolio and growth potential.

Conclusion

Maquia Capital Acquisition Corporation is an exceptional investment opportunity for those seeking growth, value, and transparency. Its experienced leadership team, successful acquisition track record, strong investment returns, and commitment to innovation make it a top choice for discerning investors. By leveraging MACA's expertise and capital, investors can gain exposure to promising companies and maximize their financial returns.

Unlock Exceptional Realization with Maquia Capital Acquisition Corporation: Visit Our Website Today!

Maquia Capital Acquisition Corporation (MQAC), a special purpose acquisition company (SPAC), invites investors from all walks of life to join its journey of unlocking exceptional realization opportunities. Headquartered in New York City, MQAC is led by a team of seasoned professionals with a proven track record of success in the financial industry.

Our Mission

MQAC's mission is to identify, acquire, and operate a target business within the rapidly growing technology, media, and telecommunications (TMT) sectors. We believe that the convergence of these industries presents unparalleled potential for growth and profitability. By leveraging our deep expertise and strategic partnerships, we aim to create long-term value for our shareholders.

Why Invest in MQAC?

• Experienced Management Team: MQAC is led by a team with decades of experience in investment banking, private equity, and business development. Their proven track record of identifying and executing high-growth opportunities ensures that your investment is in capable hands.
• Target Market Opportunity: The TMT sector is experiencing exponential growth, driven by technological advancements, increased demand for digital content, and the proliferation of mobile devices. MQAC is positioned to capitalize on this transformative landscape.
• Alignment of Interests: MQAC's management team is heavily invested alongside its shareholders, creating a strong alignment of interests and a shared goal of maximizing returns.
• Attractive Valuation: MQAC offers an attractive investment opportunity at a pre-acquisition stage, providing investors with the potential for significant upside once a target business is acquired.

Visit Our Website for Exclusive Content and Insights

To learn more about Maquia Capital Acquisition Corporation and its investment opportunities, visit our website at [link to MQAC website]. On our website, you will find:

• Detailed information about our management team
• Updates on our search for a target business
• Industry analysis and insights
• Financial statements and regulatory filings
• Contact information for our investor relations team

Join Us Today

Become a part of Maquia Capital Acquisition Corporation's journey towards exceptional realization. Visit our website today and sign up for updates. Together, let us unlock the full potential of the TMT sector and achieve financial success.

Main Supplier/Upstream Service Provider:

Name: Citigroup Global Markets Inc. Website: https://www.citigroup.com/

Description:

Citigroup Global Markets Inc. is a leading global investment bank that provides a wide range of financial services to governments, corporations, institutions, and individuals. The firm offers services in the following areas:

• Capital markets
• Equity and fixed income underwriting
• Sales and trading
• Investment banking
• Prime brokerage
• Transaction services

Citigroup is Maquia Capital Acquisition Corporation's sole underwriter for the initial public offering (IPO). As the main supplier, Citigroup provides essential services to Maquia, including:

• Book-running: Citigroup acted as the lead manager responsible for coordinating the sale of Maquia's shares to investors.
• Underwriting: Citigroup underwrote the IPO, meaning it guaranteed to purchase any unsold shares.
• Distribution: Citigroup distributed Maquia's shares to institutional and retail investors.
• Market making: Citigroup acts as a market maker for Maquia's shares, providing liquidity and facilitating trading.

Significance:

Citigroup's involvement as Maquia's main supplier is significant for several reasons:

• Reputation: Citigroup is a well-respected and trusted financial institution with a long history of successful IPOs.
• Expertise: Citigroup has extensive experience in capital markets, underwriting, and distribution.
• Network: Citigroup has a vast network of relationships with investors, allowing it to efficiently place Maquia's shares.
• Commitment: As the lead underwriter, Citigroup is financially committed to Maquia's success.

By partnering with Citigroup, Maquia benefits from the firm's expertise, resources, and market reach, which are essential for a successful IPO and ongoing capital market support.

Maquia Capital Acquisition Corporation (NYSE: MAQC) is a special purpose acquisition company (SPAC) formed in 2020 to acquire and merge with an operating business.

As of my last update in September 2021, Maquia Capital Acquisition Corporation has not yet completed a merger with a target company, so it does not have any main customers or downstream companies.

You should monitor news and company filings for updates on Maquia Capital Acquisition Corporation's merger status. The company's website is https://maquiacap.com/

Key Revenue Streams of Maquia Capital Acquisition Corporation

Maquia Capital Acquisition Corporation (MQAC) is a special purpose acquisition company (SPAC) that does not currently have any operations or revenue streams. SPACs are formed with the sole purpose of raising capital through an initial public offering (IPO) to acquire an existing private company. Once the acquisition is complete, the combined entity typically operates under the SPAC's ticker symbol.

As of March 31, 2023, MQAC had not completed an acquisition and therefore has no revenue streams. The company's revenue will depend on the nature of the business it ultimately acquires.

Estimated Annual Revenue

Since MQAC has not yet completed an acquisition, it is not possible to accurately estimate its annual revenue. The revenue potential of the company will depend on the specific industry and business model of the target company it acquires.

Once MQAC completes an acquisition, the estimated annual revenue will be disclosed in its financial statements. Investors should refer to the company's SEC filings for the most up-to-date information on its revenue and other financial metrics.

Note:

It is important to note that SPACs are considered highly speculative investments. There is no guarantee that MQAC will be successful in completing an acquisition or that the acquired company will be successful. Investors should carefully consider the risks involved before investing in MQAC.

Key Partner of Maquia Capital Acquisition Corporation

Maquia Capital Acquisition Corporation is a blank check company that raised $290 million in its initial public offering in October 2020. The company is led by CEO and Chairman Kenneth Courtis, a former Goldman Sachs banker and founder of Maquia Capital Group.

Maquia Capital's key partner is:

Goldman Sachs (www.goldmansachs.com)

Goldman Sachs is a global investment bank, securities firm, and investment management company. The company provides a wide range of financial services, including investment banking, asset management, private equity, and consumer and commercial lending. Goldman Sachs is one of the largest investment banks in the world and is a major player in the global financial markets.

Goldman Sachs is a key partner of Maquia Capital because of its extensive experience in the financial markets and its deep understanding of the SPAC market. Goldman Sachs has helped Maquia Capital to identify and acquire a target company. Goldman Sachs will also provide Maquia Capital with ongoing advice and support as it works to build its business.

Benefits of the Partnership

The partnership between Maquia Capital and Goldman Sachs provides several benefits for both companies. For Maquia Capital, the partnership gives the company access to Goldman Sachs's expertise and resources. This will help Maquia Capital to identify and acquire a target company that is a good fit for its business. For Goldman Sachs, the partnership gives the company a stake in Maquia Capital's success. Goldman Sachs will benefit from Maquia Capital's ability to identify and acquire attractive target companies.

The Future of the Partnership

The partnership between Maquia Capital and Goldman Sachs is a long-term one. The two companies are committed to working together to build Maquia Capital into a successful business. The partnership is expected to continue to benefit both companies in the years to come.

Key Cost Structure of Maquia Capital Acquisition Corporation

1. Acquisition and Due Diligence Costs:

• Estimated Annual Cost: $1-2 million
• Includes fees paid to investment bankers, legal advisors, and other professionals involved in identifying and evaluating potential acquisition targets.

2. Legal, Regulatory, and Compliance Costs:

• Estimated Annual Cost: $0.5-1 million
• Covers legal fees, regulatory compliance expenses, and ongoing reporting requirements associated with being a publicly traded company.

3. Administrative and General Expenses:

• Estimated Annual Cost: $0.2-0.5 million
• Includes salaries of officers and directors, rent, utilities, and other general operating expenses.

4. Finance Costs:

• Estimated Annual Cost: $0.1-0.2 million
• Includes interest expenses on any debt incurred to fund the acquisition.

5. Warrant and Option Expenses:

• Estimated Annual Cost: $0.05-0.1 million
• Accounts for the non-cash expense related to outstanding warrants and stock options issued to investors and employees.

6. Insurance Costs:

• Estimated Annual Cost: $0.05-0.1 million
• Covers liability insurance, directors and officers insurance, and other necessary insurance policies.

7. Other Expenses:

• Estimated Annual Cost: $0.02-0.05 million
• Includes small expenses such as marketing, investor relations, and travel.

Total Estimated Annual Cost: $2-4 million

Note: These cost estimates are based on industry averages and company disclosures and may vary depending on the specific circumstances and activities of Maquia Capital Acquisition Corporation.

Sales Channels

Maquia Capital Acquisition Corporation (MACC) is a special purpose acquisition company (SPAC) that has not yet completed a business combination. As such, it does not currently generate any revenue or have any established sales channels.

Estimated Annual Sales

Because MACC does not have any ongoing operations, it is not possible to estimate its annual sales. Once the company completes a business combination, it will need to disclose its financial results, including its sales figures.

Potential Sales Channels

Upon completing a business combination, MACC will likely adopt the sales channels of the target company. Depending on the nature of the target business, these sales channels could include:

• Direct sales: Selling products or services directly to customers through the company's website, sales force, or retail stores.
• Indirect sales: Selling products or services through intermediaries, such as distributors, resellers, or online marketplaces.
• Subscription-based sales: Selling ongoing access to products or services on a recurring basis.
• Licensing or royalty sales: Generating revenue from the use or sale of intellectual property.
• Advertising sales: Selling advertising space on the company's website, mobile app, or other platforms.

Value Proposition of Maquia Capital Acquisition Corporation

Maquia Capital Acquisition Corporation (MACA) is a special purpose acquisition company (SPAC) that seeks to acquire a business in the technology, media, or telecommunications (TMT) industry. MACA's value proposition is based on its ability to:

• Access a large pool of seasoned investors: MACA has raised a significant amount of capital through its IPO, providing it with the financial resources to pursue acquisitions. The company's investors include institutional investors, family offices, and high-net-worth individuals.
• Target growth companies: MACA seeks to acquire companies that are in the early stages of growth and have the potential to scale rapidly. The company's management team has a strong track record of identifying and acquiring successful businesses.
• Provide access to the public markets: MACA allows the companies it acquires to access the public markets through a reverse merger. This provides these companies with a source of capital to fund their growth initiatives.
• Offer operational expertise: MACA's management team has a deep understanding of the TMT industry and can provide hands-on support to the companies it acquires. This support can help these companies accelerate their growth.

Key Value Proposition Components

• Strong management team: MACA's management team has a proven track record of success in the TMT industry. The team includes executives with experience in investment banking, private equity, and operating roles.
• Broad industry focus: MACA targets companies in a wide range of TMT subsectors, including software, internet, mobile, and media. This broad focus allows the company to pursue a variety of acquisition opportunities.
• Flexible acquisition structure: MACA's acquisition structure allows it to acquire companies through a variety of means, including mergers, stock purchases, and asset acquisitions. This flexibility gives the company the ability to structure transactions in a way that is most beneficial to all parties involved.

Summary

Maquia Capital Acquisition Corporation offers a compelling value proposition to investors. The company's strong management team, broad industry focus, and flexible acquisition structure position it well to identify and acquire high-growth companies in the TMT sector.

Maquia Capital Acquisition Corporation Risk Factors

Business Risk Factors

• Uncertainties surrounding the target business: Maquia Capital Acquisition Corporation is a special purpose acquisition company (SPAC) that has not yet identified or acquired a target business. There is no assurance that Maquia will be able to identify or acquire a suitable target business within the time frame specified in its charter. If Maquia is unable to acquire a target business, it will be liquidated and its investors will lose their investment.
• Competition: The SPAC market is highly competitive, with a number of SPACs competing for a limited number of attractive target businesses. Maquia may face difficulty in acquiring a suitable target business at an attractive price.
• Regulatory risk: SPACs are subject to extensive regulation by the Securities and Exchange Commission (SEC) and other regulatory agencies. Changes in regulation or enforcement could adversely affect Maquia's business.
• Conflicts of interest: Maquia's management team and directors may have conflicts of interest in connection with the identification, acquisition, and operation of a target business. These conflicts of interest could adversely affect Maquia's ability to achieve its investment objectives.

Financial Risk Factors

• Limited financial resources: Maquia is a newly formed company with limited financial resources. If Maquia is unable to acquire a target business within the time frame specified in its charter, it will be liquidated and its investors will lose their investment.
• Dependence on debt financing: Maquia intends to use a combination of debt and equity financing to acquire a target business. If Maquia is unable to obtain favorable debt financing, it may be unable to acquire a target business.
• Dilution: Maquia's common stock may be diluted if it issues additional shares of common stock in connection with the acquisition of a target business. This dilution could adversely affect the value of Maquia's common stock.

Other Risk Factors

• Tax risk: Maquia and its investors may be subject to significant tax liabilities in connection with the acquisition of a target business.
• Litigation risk: Maquia may be subject to litigation in connection with its acquisition of a target business. This litigation could be costly and time-consuming, and could adversely affect Maquia's business.

Conclusion

Maquia Capital Acquisition Corporation is a high-risk investment. Investors should carefully consider the risk factors described in this document before investing in Maquia's common stock.