re: Special Purpose Acquisition Company (SPAC) Discussion

Talk to me here. There seems like an arbitrage opportunity on some of these SPACs, but I’ve never split units, so I don’t know how much work it is and if that work is worth it.

Say a unit is priced at 10.30, the share is priced at 10.10, and the warrant is priced at .70

That’s a .50 difference in the unit value and the implied share+warrant value. Assuming you purchase 2000 units, split them, then sell the shares and warrants, that’s a 5% return— plus or minus 2% with potential volatility.

This may not be worth the effort, but if a spread could yield a 10+% arbitrage return, it may be worth the effort and risk.