Sidoti Augments Its SPAC and "De-SPAC" Equity Research Universe

Rhea-AI Summary

Sidoti & Company has initiated coverage on LGL Systems Acquisition Corp. (NASDAQ: DFNS) and Reservoir Media (NASDAQ: RSVR). The research firm set a price target of $15 for DFNS, which is merging with IronNet Cybersecurity, expected in Q3 2021, and $14 for RSVR post its merger with Roth CH Acquisition II Co.. Sidoti aims to provide independent analysis on SPACs and De-SPACs to aid investors in their decision-making. This coverage expands Sidoti’s previous work with PLBY Group (NASDAQ: PLBY), highlighting an ongoing commitment to SPAC research.

Positive

• Initiated coverage on LGL Systems Acquisition Corp. (DFNS) with a price target of $15.
• LGL Systems Acquisition is merging with IronNet Cybersecurity, enhancing its market position.
• Coverage on Reservoir Media set with a price target of $14 post-merger, reflecting potential growth.

Negative

• None.

Adds LGL Systems Acquisition Corp. and Reservoir Media to Sidoti Coverage

NEW YORK, NY / ACCESSWIRE / August 3, 2021 / Sidoti & Company, LLC, ("Sidoti") which for over two decades has been a premier provider of securities research, focused on small cap equities, recently initiated coverage on LGL Systems Acquisition Corp. (NASDAQ:DFNS) and Roth CH Acquisition II Co., each of which are special purpose acquisition companies ("SPACs"). Days ago, Roth CH Acquisition II Co. successfully closed is previously announced business combination with Reservoir Media, Inc. ("Reservoir") (NASDAQ:RSVR). Coverage of these SPACs and their successor "de-SPACed" companies ("De-SPACs") comes on the heels of Sidoti's initiation, earlier this year, of Mountain Crest Acquisition Corp, which became PLBY Group Inc. (NASDAQ:PLBY) after it successfully completed its business combination with Playboy. Each of these SPACs or De-SPACs are participants in Sidoti's Company Sponsored Research ("CSR") program (www.sidoti.com/csr).

In his initiation report of Roth CH Acquisition II Co. of July 20, 2021, Sidoti analyst Greg Pendy set a price target of $14 and a "high risk" rating. Mr. Pendy maintained these ratings in a report issued yesterday, while updating his analysis of Reservoir, a leading independent music company with an existing catalog of over 130,000 copywrites, including a collection of well-known hits across genres. Sidoti's Reservoir initiation report and yesterday's update note can be found at www.sidoti.com/rsvr.

Sidoti's initiation of LGL Systems Acquisition Corp. ("DFNS") provides for a price target of $15 per share and a "moderate risk" rating. DFNS has entered into an agreement to combine with IronNet Cybersecurity, Inc., which detects and scores suspicious activity in real-time, and shares knowledge of common malicious activity across a network of customers. The closing of the business combination is expected in the third quarter of 2021. Sidoti's DFNS initiation report can be found at www.sidoti.com/dfns.

Peter Sidoti, CEO stated: "We are delighted to provide research coverage on LGL Systems Acquisition Corp. and Reservoir, in large part because we believe holders of SPAC and De-SPAC shares need a credible, independent voice to opine on the merits and risks inherent in the anticipated transactions as SPACs near their shareholder vote and on each respective company's investment thesis in the quarters following a successful transaction. Our SPAC reports provide price targets, earnings estimates, and investment commentary which we hope will enable shareholders to make more informed decisions at the shareholder meeting; our ongoing coverage of De-SPACs post-merger should provide similar benefits."

Mr. Sidoti continues: "It is very difficult for SPACs to obtain research coverage because their M&A and PIPE bankers are unable to provide pre-shareholder vote research due to conflicts of interest. We believe Sidoti's SPAC-CSR program, which emphasizes independence, provides both the SPAC and its shareholders a valuable service not readily available elsewhere. Moreover, we hope following our initiation of coverage, that our institutional sales effort can help to place SPAC shares - which generally trade heavily after a deal is announced - in the hands of longer-term, fundamental investors. This is something every company we cover tends to covet."

Sidoti's coverage of LGL Systems Acquisition Corp. and Reservoir represents the second and third SPAC/De-SPAC that Sidoti is covering under its CSR program, joining PLBY Group, Inc. (Sidoti's reports on PLBY can be found at (www.sidoti.com/plby). Sidoti anticipates that even more SPACs will be looking for an independent analysis of their investment merits and risks in the months ahead.

About Sidoti

For over two decades, Sidoti (www.sidoti.com) has been a premier provider of independent securities research focused specifically on small- and micro-cap companies and the institutions that invest their securities, with most of our coverage in the $50 million - $5 billion market cap range. Our approach affords companies and institutional clients a combination of high-quality research, a small-and micro- cap focused nationwide sales effort, broad access to corporate management teams, and extensive trading support. We serve 500+ institutional clients in North America, including many leading managers of portfolios with $200 million to $2 billion of AUM. Sidoti promotes meaningful interaction between issuers and investors in the small- and micro-cap space through our conferences (https://www.sidoti.com/events) and the hundreds of non-deal roadshows we host each year.

About LGL Systems Acquisition Corp.

LGL Systems Acquisition Corp. is a blank check company formed for the purpose of effecting a merger with a target business in the cybersecurity, C4ISR, data processing, and/or analytics sectors, with a broad range of applications across the aerospace, defense, and communication end markets.

About IronNet

Founded in 2014 by GEN (Ret.) Keith Alexander, IronNet Cybersecurity is a global cybersecurity leader that is transforming how organizations secure their networks by delivering the first-ever Collective Defense platform operating at scale. Employing a high number of former NSA cybersecurity operators with offensive and defensive cyber experience, IronNet integrates deep tradecraft knowledge into its industry-leading products to solve the most challenging cyber problems facing the world today.

About Roth CH Acquisition II Co.

Roth CH Acquisition II Co. is a blank check company incorporated for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. Roth CH is jointly managed by Roth Capital Partners and Craig-Hallum Capital Group. Its initial public offering occurred on December 10, 2020 raising approximately $115 million. For more information, visit www.rothch.com

About Reservoir

Reservoir is an independent music company based in New York City and with offices in Los Angeles, Nashville, Toronto, London, and Abu Dhabi. Founded as a family-owned music publisher in 2007, Reservoir has grown to represent over 130,000 copyrights and 36,000 master recordings with titles dating as far back as 1900 and hundreds of #1 releases worldwide. Reservoir holds a regular Top 10 U.S. Market Share according to Billboard's Publishers Quarterly, was twice named Publisher of the Year by Music Business Worldwide's. The A&R Awards, and won Independent Publisher of the Year at the 2020 Music Week Awards. The company also represents a multitude of recorded music through Chrysalis Records, Tommy Boy Records, and Philly Groove Records and manages artists through its ventures with Blue Raincoat Music and Big Life Management. For more information visit www.reservoir-media.com.

Contact:
egr@sidoti.com
(212) 297-0001

SOURCE: Sidoti & Company, LLC

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FAQ

What is the price target for LGL Systems Acquisition Corp. (NASDAQ: DFNS)?

Sidoti set a price target of $15 for LGL Systems Acquisition Corp. (DFNS).

What merger is LGL Systems Acquisition Corp. (DFNS) involved in?

LGL Systems Acquisition Corp. (DFNS) is merging with IronNet Cybersecurity.

What is the recent price target for Reservoir Media (NASDAQ: RSVR)?

Sidoti has set a price target of $14 for Reservoir Media (RSVR) after its merger with Roth CH Acquisition II Co.

What does Sidoti's research coverage on SPACs include?

Sidoti's research coverage includes price targets, earnings estimates, and investment commentary for SPACs and De-SPACs.

When is the business combination for DFNS expected to close?

The business combination for LGL Systems Acquisition Corp. (DFNS) is expected to close in the third quarter of 2021.