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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 6/8/20 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 6/22/20 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 6/29/20 at 2:50 pm to LSUregit
Thanks for posting OP, my apologies for stumbling across this a little late. Would you happen to have a list of warrants to research that have the potential to move up from here? Any potential websites to explore? Any help would greatly be appreciated!!
Posted on 10/6/20 at 12:00 am to LSUregit
Anyone look at WWR, graphite mining in west Alabama after trump signed an executive order. Don't know if it's to late on this one or it's just beginning
Posted on 11/25/20 at 10:22 pm to LSUregit
PIC
Posted on 12/12/20 at 11:32 am to LSUregit
BFT merging with paysafe. In with 2k shares
This post was edited on 12/12/20 at 11:34 am
Posted on 1/27/21 at 7:42 pm to LSUregit
Is the strategy of just trading the warrants and dumping them before merger still working? Or has everybody kind of figured this out and it’s not really working anymore?
Posted on 2/3/21 at 12:05 am to LSUregit
I’ve been buying BTWN and the related BTNB. They are both associated with Peter Thiel so I figure there’s a good chance they turn to gold. He’s the reason I bought Palantir at $9 when it went public.
Posted on 2/6/21 at 12:17 pm to LSUregit
quote:
LSUregit
Can I get an invite to your Spac discord please? I am getting more serious into this.
This post was edited on 2/6/21 at 2:22 pm
Posted on 2/19/21 at 3:11 pm to LSUregit
A few questions on spacs. So far I have been playing the close to nav strategy. Just on a basic robin hood account. But I am interested in buying the units pre split (on fidelity). Basically when you buy a unit you get the common plus half a warrant when it splits right? I am assuming you cant use margin like on commons, so would this be a good play for a roth ira Thanks in advance.
Posted on 2/26/21 at 9:22 pm to LSUregit
Hope you guys scooped up some of the great deals last few days. I loaded up on Conx, Crhc, and Avan.
Posted on 3/2/21 at 3:01 pm to LSUregit
Anyone has any speculative insight to who Sportradar decided to go with?
This post was edited on 3/2/21 at 3:02 pm
Posted on 3/9/21 at 1:31 pm to LSUregit
Loading up on NSH (SPAC acquiring Spire) currently. I think it will be added to the ARKX fund. Only trading at a 5% premium to NAV. Is already operating at substantial revenue #'s in 2021 and has a much higher TAM than other satellite companies trading at a higher enterprise value. I just don't think many people have heard of this one yet.
Posted on 6/13/21 at 7:20 am to LSUregit
AVVH - big merger speculation play
Posted on 10/25/21 at 6:59 pm to LSUregit
With DWAC, BENE, and BKKT soaring with some incredible gains the last 3 trading days, it looks like we may start to see some more plays like this in the near term. I am not that verse in the SPAC world. Anyone still follow these things?
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