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Special Purpose Acquisition Company (SPAC) Discussion
Posted on 5/31/20 at 8:25 pm
Posted on 5/31/20 at 8:25 pm
For Degenerates of MT who occasionally likes to dabble in speculation:
SPACs are basically shell/blank check companies formed for the purpose of raising capital through an IPO and using those funds to acquire an operating business.
Recent rise of popularity due to SCH/SPCE, DEAC/DKNG, VTIQ/NKLA. Other IPOs are trading higher than their merger price, but these are the most popular meme ones.
The next one appears to be FMCI/FMCIW (First mentioned VTIQ thread pg 6). Pumpers will tout Impossible Food but highly unlikely. There's a June 8 meeting to extend consummation deadline to 9/30. Anything less than IF will be an initial let down but long term, BYND needs some healthy competition imo. If no definitive agreement is reached, everything will plummet back to baseline.
The play has been getting into the warrants (similar to call options/leaps) right when some merger news is announced...initially warrants seems to move higher before the common shares. Some are even going further and speculating on SPAC warrants even before any target is announced (me). Some park money in shares for lower risk with a floor of $10. If a SPAC does not acquire a target within the stated timeline outlined in the prospectus, shareholders are given the option to redeem their shares, generally $10/share + interest (warrants go to worthless).
I consider this still a very niche high risk/rewards play. Hopefully we can identify a few more high-flyers down the road. Keeping my eye on FEAC SCH2/SCH3 CCXX and many others. GLTA
SPACs are basically shell/blank check companies formed for the purpose of raising capital through an IPO and using those funds to acquire an operating business.
Recent rise of popularity due to SCH/SPCE, DEAC/DKNG, VTIQ/NKLA. Other IPOs are trading higher than their merger price, but these are the most popular meme ones.
The next one appears to be FMCI/FMCIW (First mentioned VTIQ thread pg 6). Pumpers will tout Impossible Food but highly unlikely. There's a June 8 meeting to extend consummation deadline to 9/30. Anything less than IF will be an initial let down but long term, BYND needs some healthy competition imo. If no definitive agreement is reached, everything will plummet back to baseline.
The play has been getting into the warrants (similar to call options/leaps) right when some merger news is announced...initially warrants seems to move higher before the common shares. Some are even going further and speculating on SPAC warrants even before any target is announced (me). Some park money in shares for lower risk with a floor of $10. If a SPAC does not acquire a target within the stated timeline outlined in the prospectus, shareholders are given the option to redeem their shares, generally $10/share + interest (warrants go to worthless).
I consider this still a very niche high risk/rewards play. Hopefully we can identify a few more high-flyers down the road. Keeping my eye on FEAC SCH2/SCH3 CCXX and many others. GLTA
This post was edited on 5/31/20 at 10:01 pm
17
Posted on 5/31/20 at 8:56 pm to LSUregit
Good info here, thanks for posting 
Posted on 6/1/20 at 9:55 am to Boh
Posted on 6/8/20 at 2:25 pm to LSUregit
Hope someone has been keeping tabs on FMCI/ FMCIW. Still no announcement today tho.
Been in FMCIW since .50 and FMCI since $10.5
Been in FMCIW since .50 and FMCI since $10.5
Posted on 6/8/20 at 5:30 pm to LSUregit
Posted on 6/10/20 at 5:02 pm to LSUregit
FMCI has been running strong over the past week, closing higher over recent trading days. Guessing it will depend on who the target is to see how high it can go. I'm novice on these things but most people seem to think Impossible would be amazing but unlikely
OPES has jumped a lot this week (BurgerFi?)
OPES has jumped a lot this week (BurgerFi?)
Posted on 6/10/20 at 5:11 pm to Boh
Sold my FMCI today just think it has gone too high with no real news coming for a few weeks.
Bought GPAQ
Bought GPAQ
Posted on 6/10/20 at 6:05 pm to Boh
I clicked on this post to mention OPES.
They entered a LOI with BurgerFi, yeah. FMCI seems to be more popular so far, but OPES and CCH have actual announced companies (Utz with CCH I believe).
OPES/BurgerFi is going to be my first real speculation stock (I do have other stocks though). I believe it has potential, not expecting it to do what VTIQ/NKLA has done but I can see conservatively, $25-30 in a few months.
They entered a LOI with BurgerFi, yeah. FMCI seems to be more popular so far, but OPES and CCH have actual announced companies (Utz with CCH I believe).
OPES/BurgerFi is going to be my first real speculation stock (I do have other stocks though). I believe it has potential, not expecting it to do what VTIQ/NKLA has done but I can see conservatively, $25-30 in a few months.
Posted on 6/22/20 at 10:23 pm to SECFan1995
SHLL/SHLL+
Hopefully others jumped aboard when first posted last week.
INSU/INSUW
Just in talk/rumors. Maybe confirmation within next few wks.
CRSA/CRSAW
Hopefully others jumped aboard when first posted last week.
INSU/INSUW
Just in talk/rumors. Maybe confirmation within next few wks.
CRSA/CRSAW
Posted on 6/22/20 at 10:34 pm to LSUregit
Bill SPACman's mother of all
PSTH should be available any day now; however, most SPACs can take up to two yrs to find a target. I plan to park 100k in the units/commons with a floor of $20 the first day it's available. I'm thinking he already has some targets in mind and will announce within 6m- 1yr. Will also buy the warrants once they separate (around 52 days later).
PSTH should be available any day now; however, most SPACs can take up to two yrs to find a target. I plan to park 100k in the units/commons with a floor of $20 the first day it's available. I'm thinking he already has some targets in mind and will announce within 6m- 1yr. Will also buy the warrants once they separate (around 52 days later).
Posted on 6/22/20 at 10:39 pm to LSUregit
Thanks for bumping.
I read about PSTH earlier. I’m jumping in too. The guy knows what he’s doing and he has to have some targets in mind to be raising that much capital.
I read about PSTH earlier. I’m jumping in too. The guy knows what he’s doing and he has to have some targets in mind to be raising that much capital.
Posted on 6/22/20 at 10:43 pm to LSUregit
I’ve payed with a few SPACs, never bought warrants, though.
Do you mostly buy warrants on the one’s you like/see value or do wait for rumors and just try to jump in early?
Do you mostly buy warrants on the one’s you like/see value or do wait for rumors and just try to jump in early?
Posted on 6/22/20 at 10:55 pm to TheChosenOne
I currently own warrants in over 20 different SPACs. I bought them very very early before it caught on tho. Many folks are buying and trading warrants just like individual stocks, with zero intention to redeem, and has made them very volatile. If you look at the trend of EVERY SPAC warrant over the past month, they all have trended way up.
I was lucky to be ahead of the game and own most of them near their lows. I knew I couldn't predict which SPAC will announce a target so I bought a basket of them. Including the three just mentioned.
- Once a target is announced, warrants will rocket up then commons follow if it's a decent company.
I was lucky to be ahead of the game and own most of them near their lows. I knew I couldn't predict which SPAC will announce a target so I bought a basket of them. Including the three just mentioned.
- Once a target is announced, warrants will rocket up then commons follow if it's a decent company.
This post was edited on 6/22/20 at 10:58 pm
Posted on 6/22/20 at 11:21 pm to LSUregit
ACTT is one that I have been watching. They have a meeting in a couple days
LINK
They will be providing Starbucks with Stevia
LINK
quote:
Act II is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses that completed its initial public offering in April 2019. Act II focuses on companies in the “better for you” sectors, such as consumer packaged goods and other consumables as well as hospitality, including restaurants. The company is led by 25-year organic and natural products industry visionary Irwin D. Simon, Executive Chairman.
quote:
Following the closing, the combined company will be rebranded as Whole Earth Brands, Inc. (“Whole Earth Brands”). Whole Earth Brands will look to expand its branded products platform through investment opportunities in the natural alternatives and clean label categories across the global consumer product industry. Over time, Whole Earth Brands will look to become a portfolio of brands that Open a World of Goodness™ to consumers and their families.
They will be providing Starbucks with Stevia
Posted on 6/23/20 at 8:36 am to weisertiger
How do you determine the value on something like this?
What news would come out of the meeting in a couple of days that would make the stock go up, and what kind of rise are we talking about?
I'll hang up and listen
What news would come out of the meeting in a couple of days that would make the stock go up, and what kind of rise are we talking about?
I'll hang up and listen
Posted on 6/23/20 at 3:11 pm to jmcwhrter
ACTT
Tomorrow they are voting to approve the merger of the two companies creating a new company (whole earth brands).
Valuation is tough but you can look at the financials of the merger companies to get an idea of what you are buying.
I like ACTT for a couple reasons. There is significant momentum in the total SPAC space right now. Everyone saw how great NKLA did, people are eager to find the next one.
Beyond that, I like ACTT specifically bc of trend towards healthy options. As someone said they are in starbucks and should become a name brand.
ETA
I think anything under $11 is extremely good value, I really think this is $12+ going into the vote and hopefully running to $15 after that. I am in at $10.00 exactly which is actually under the insured amount in the event the vote doesn't pass so my risk is little.
Tomorrow they are voting to approve the merger of the two companies creating a new company (whole earth brands).
Valuation is tough but you can look at the financials of the merger companies to get an idea of what you are buying.
I like ACTT for a couple reasons. There is significant momentum in the total SPAC space right now. Everyone saw how great NKLA did, people are eager to find the next one.
Beyond that, I like ACTT specifically bc of trend towards healthy options. As someone said they are in starbucks and should become a name brand.
ETA
I think anything under $11 is extremely good value, I really think this is $12+ going into the vote and hopefully running to $15 after that. I am in at $10.00 exactly which is actually under the insured amount in the event the vote doesn't pass so my risk is little.
This post was edited on 6/23/20 at 3:13 pm
Posted on 6/24/20 at 11:41 am to hiltacular
This one (ACTT)stunk it up today
Posted on 6/24/20 at 6:57 pm to LChama
quote:
This one (ACTT)stunk it up today
Hardly, green in a sea of red. This will now trade under the ticker FREE. I’ll hold for a few weeks and see how it shakes out
Posted on 6/24/20 at 7:00 pm to Turftoe
Posted on 6/24/20 at 7:40 pm to LChama
It was basically flat during a huge red day. Let’s see what it does now that the merger has been approved. Still think the risk is minimal and reward is worth being in it.
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