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pink sheet shells have zero cash value whereas a SPAC is a pile of cash looking for a high impact business. This forum is not a discussion point for sub penny lottery tickets. Sure some people get a ten bagger on some of them. Most get delisted with 100% losses.
Aaahhhh! So, a micro spac like tsnp tsnpd hmbl..... where the price of tsnp exponentially grows over 6 months?
Micro Spacs..... I like this term.
I picked an index like throwing a stack of darts into the OTC index.
Just for fun of course. Hoping to beat lottery returns.
Sorry, I have to bow out of this one.
I run from
SpaceX
Virgin
Mars
Martians
NASA
IronNet Cybersecurity and trading platform eToro lead the list of new SPAC IPOs
https://businessnewstribune.com/2021/03/22/ironnet-cybersecurity-and-trading-platform-etoro-lead-the-list-of-new-spac-ipos/
IronNet Cybersecurity announced on Monday that it will go public through a combination with LGL Systems Acquisition. The company leads a list of new SPAC IPO’s.
The firm, which prides itself in delivering cybersecurity’s most advanced network detection and response capabilities and a seamless ability to collaborate through Collective Defense said that it has signed a definitive business combination agreement with LGL Systems Acquisition Corp. (NYSE: DFNS), a special purpose acquisition company formed to help advance domestic and international defense. Upon close of the transaction, the combined company will be renamed IronNet Cybersecurity and will be listed on the New York Stock Exchange and trade under the ticker symbol (RNT). The transaction is expected to close sometime in the third quarter of 2021.
Trading platform eToro also announced that intends to go public through a merger with special purpose acquisition company FinTech Acquisition Corp. V (NASDAQ: FTCV), the companies announced on March 16. Upon closing of the transaction, the combined company will operate as eToro Group Ltd. and is expected to be listed on NASDAQ. eToro was founded in 2007.
Late last week, Rockley Photonics also announced that it has entered into an agreement to combine with SC Health Corp. (NYSE:SCPE), a publicly traded SPAC. The transaction will result in Rockley becoming a publicly traded company on the NYSE under the symbol RKLY. The transaction, which has been unanimously approved by SC Health’s board of directors and the independent directors of Rockley’s board of directors, is expected to close in the second quarter of 2021.
Other SPAC IPOs this week:
Accelerate Acquisition (NYSE:AAQC.UN) opened on March 18.
American Acquisition Opportunity (NASDAQ:AMAOU) opened on March 18.
Athena Technology Acquistion (NYSE:ATHN.UN) opened on March 17 at $9.99.
Build Acquisition (NYSE:BGSX.UN) opened on March 17 at $10.
Byte Acquisition (NASDAQ:BYTS) opened on March 19 at $9.93.
SoftBank’s (OTCMKTS:SFTBY) LDH Growth Corp I (NASDAQ:LDHA) opened on March 19 at $10.02.
Levere Holdings (NASDAQ:LVRA.U) opened on March 19 at $9.98.
Research Alliance Corp. II (NASDAQ:RACB) opened on March 18 at $10.22.
GX Acquisition Corp. II (NASDAQ:GXIIU) opened on March 18 at $9.95.
Revolution Healthcare Acquisition (NASDAQ:REVHU) opened on March 18 at $10.15.
Forum Merger IV (NASDAQ:FMIVU) opened on March 18 at $9.97.
Golden Arrow Merger (NASDAQ:GAMCU) opened on March 17 at $9.95.
Kadem Sustainable Impact (CVE:KSI) opened on March 17 at $9.95.
KKR Acquisition Holdings I (NYSE:KAHC.UN) opened on March 17 at $10.
Plum Acquisition Corp. I (NASDAQ:PLMIU) opened on March 16 at $9.99.
Waldencast Acquisition (NASDAQ:WALDU) opened on March 16 at $10.20.
Reinvent Technology Partners Y (NASDAQ:RTPYU) opened on March 16 at $10.15.
Fortress Value Acquisition Corp. IV (NYSE:FVIV.UN) opened on March 16 at $10.
if a sub penny stock had an enterprise value sufficient to merge with a multi-million dollar cash SPAC, they would just reverse split and list. Even if they were not quality enough for Nasdaq, they would RS and do a PIPE. Sub-penny shells are only useful as acting like a micro-cap SPAC, not merging with one. It's a case of size matters.
FTCV and FTCVW - got starters yesterday. May try to add more if either dips. Etoro, a competitor to Rovinhood going public via FTCV.
https://techcrunch.com/2021/03/18/what-etoros-investor-presentation-and-10b-valuation-tells-us-about-robinhood/
Your feedback was unspecific. Thanks all the same.
NGA - Legault and Trudeau reunited for Lion
Link:
https://www.lapresse.ca/affaires/entreprises/2021-03-13/usine-de-batteries-electriques/legault-et-trudeau-reunis-pour-lion.php
The Premier of Quebec and the Premier of Canada will meet to announce funding for an electric battery factory
Posted on March 13, 2021
Richard DufourRICHARD DUFOUR
PRESS
Tommy ChouinardTOMMY CHOUINARD
PRESS
For the first time in more than a year, François Legault and Justin Trudeau will meet in person on Monday to jointly announce the financing of a battery plant project from the Quebec builder of electric urban buses and trucks Lion, has learned The Press . It is a total investment of around $ 180 million.
The Prime Minister of Canada and his counterpart from Quebec will come together in an exceptional way. Their most recent meeting dates back to 2019, months before the pandemic. Of course, they have been meeting virtually on a regular basis with the premiers of other provinces since the onset of the health crisis.
The announcement will take place at the Palais des congrès de Montréal - one of the only places, along with the auditorium of the Bibliothèque et Archives nationales du Québec, where Public Health allows government announcements in this red zone. The Palais des congrès is also used for the vaccination campaign in the metropolis, but MM. Legault and Trudeau will be in a remote area that is not occupied by Public Health.
The financial package of the project which will be announced is complex. Basically, Ottawa will provide assistance in the form of grants, while Quebec's contribution will be a “forgivable loan”. Forgiveness will be tied to the creation of jobs by Lion.
The forgivable loan granted to Lion will therefore be different from that which has just been granted to Alstom by the Legault government. Alstom obtained a loan which does not have to be repaid if a number of jobs at the plant are maintained for a certain number of years.
Lion revealed last fall that she planned to build a battery factory in the very short term, a project valued at nearly $ 200 million. Funding for the project was yet to be determined, and the location of the plant had yet to be confirmed.
Batteries made in Saint-Jérôme?
The City of Saint-Jérôme agreed in November to an agreement in principle that a long lease of 25 years on a plot of more than 450 000 ft 2 would be sold to Lion. This agreement was, however, conditional on obtaining the necessary financing by the company to carry out its project. We then pointed to the federal and provincial governments.
In exchange for the right to enjoy free of this land for 25 years, and leave property tax for five years, Lion is committed to build a plant at least 150,000 ft 2 , equipped with 35 'ceilings and parking lots. It will have a purchase option of the field from the 10 th year.
The land in question is located in an industrial zone, rue De Martigny Ouest, near the intersection with the Autoroute des Laurentides.
It was not possible to get more information from Lion executives surrounding Monday's announcement.
Lion currently operates a battery production line at its vehicle assembly plant in Saint-Jérôme. However, these batteries are produced with the help of a third party.
Lion is also due to announce the location of a vehicle assembly plant in the United States in the near future. The current Saint-Jérôme plant has a production capacity of 2,500 vehicles per year.
The plan to list Lion's shares on the New York Stock Exchange also continues to progress. The start of trading under the symbol "LEV" is still expected in the coming weeks. Lion's leap to Wall Street came about through a merger with Northern Genesis, a special purpose acquisition company whose shares are already listed in New York under the symbol “NGA”.
Beyond the Lion project, there is no lack of subjects to fuel the discussion between MM. Trudeau and Legault, whose relations are not very good. There have been periodic skirmishes between the two leaders in recent months.
Other issues
François Legault rants against Ottawa's desire to establish national standards for long-term accommodation centers, for example. He had publicly expressed his impatience with the delivery dates of vaccine doses, while Mr. Trudeau had criticized the provinces for not administering them quickly enough. This is not to mention the "chicane" around the imposition of a quarantine on travelers returning from abroad.
At the top of François Legault's list of priorities in his relations with Ottawa is an increase in health transfers. Quebec is asking for $ 6.2 billion more per year, in order to reduce the federal government's share in funding spending in this sector from 22% to 35%. All the provinces are demanding a total increase of 28 billion.
This issue is crucial for the Legault government, whose budget will be tabled on March 25 - we do not yet know the date of the federal budget, while the possibility of the upcoming call of general elections looms. Quebec Finance Minister Eric Girard has already recognized that an additional federal contribution is essential to get out of the budget hole within five years. Otherwise, it would be necessary, among other things, to cut spending, he warned. The fact remains that Ottawa itself is in deficit.
Federal money has nevertheless served the Legault government well since the start of the pandemic. While Quebec's own-source revenues (mainly taxes and levies) fell 6.9% - or $ 4 billion - from April to November compared to the same period last year, transfers of all kinds from Ottawa jumped 18.6% - or $ 3 billion - with the string of announcements made by Justin Trudeau in recent months.
No. The SPAC’s have more brains than that
I want a position!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I want a position!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
These are SPAC that have flown too close to the sun. I have my eyes on $10.00 SPACs.
Yes, merging with Indie semi any day now, SPAC has price targets. Indie has Skyworks senior management
Wall Street Journal Short Sellers Boost Bets Against SPACs
https://www.wsj.com/articles/short-sellers-boost-bets-against-spacs-11615714200
Hi Guys!
What was the electric automobile computer chip SPAC again?
Is this the same one?
THBR
U.S. Nasdaq
Thunder Bridge Acquisition II Ltd. Cl A
I am considering the purchase of one of two SPACs: IPOE / SoFi or GHVI / Matterport. DD on both completed, torn between both, could buy both.
I am not posting this to either group, as I know their positions.
Looking for opinions on both or either.
$NGA Investor Presentation - SPAC Merger Soon!
Presentation Link:
https://pages.thelionelectric.com/wp-content/uploads/2020/11/Investor-Presentation_20203011.pdf
Your core instincts intact.
PSTH massive call!
NO - what rock did you find these under ?
I'd bet that all of them can be found on T53's crapfest .0001 board.
.0001 is the only place to buy these horror tickers.
quick gains in spacs require cash flow into the market. Stimulus checks and tax refunds should breathe life into them.
psth green :) srac you are next if not today then monday chop chop
spacs getting killed, got psth and srac on dip hopefully turn around next week
$NGA Transaction Summary
Transaction
~ Northern Genesis Acquisition Corp. (“Northern Genesis”) (NYSE: NGA) is a publicly listed special purpose
acquisition company with ~$320mm cash held in trust
~ The Lion Electric Co. (“Lion”), a designer, manufacturer and distributor of all-electric medium and heavy-duty
urban vehicles, to combine with Northern Genesis
~ Lion to be the surviving entity; name to be The Lion Electric Company upon closing of the transaction
Listing / Ticker
~ Pro forma company expected to trade on the NYSE under the new ticker symbol “LEV”
Valuation
~ Transaction values the combined entity at an enterprise value of ~$1.5bn
Transaction Proceeds
~$500mm(1) of cash to pursue Lion’s growth strategy based on cash held in trust and PIPE proceeds
~ $200mm fully committed PIPE offering to close concurrently with business combination
~ Growth strategy includes expansion of manufacturing capacity in the U.S., development and automated
assembly of advanced battery systems and other general corporate purposes
~ Expected Closing: Q1 2021
COWI, NOHO, ECEZ, ADTM, CWIR, IHSI, HAON, DKAM, UVSE, MYDX, ITCJ, SLLN, PYCT, IFLM, VRSEF
Are any of these SPAC targets? Thanks in advance! Any specific feedback regarding these subpenny stocks is appreciated.
$NGA Lion Electric to Bring Zero-Emission School Buses to California's Largest School District
Link:
https://www.newswire.ca/news-releases/lion-electric-to-bring-zero-emission-school-buses-to-california-s-largest-school-district-884475340.html
MONTREAL, Feb. 25, 2021 /CNW Telbec/ - Lion Electric (Lion), a leading manufacturer of all-electric medium and heavy-duty urban vehicles, today announced that it has secured an order for its all-electric school buses from the Los Angeles Unified School District (LAUSD). This initial order of 10 LionC school buses, which follows Lion's recent delivery of all-electric school buses to the Twin Rivers Unified School District in Sacramento, further solidifies Lion's leadership in zero-emission school buses in California and North America.
"LAUSD is possibly the most well-known school district in the United States, and we are pleased to have been chosen as a key partner in their journey toward zero-emission school bus operations," said Marc Bedard, CEO and Founder of Lion Electric. "These all-electric buses signify the district's commitment to improving the local environment and the health of its communities, and we are confident that they will meet and exceed the expectations of the operators and students."
LAUSD is the second largest school district in the United States, serving over 600,000 students in kindergarten through twelfth grade at over 1,000 schools. The district's boundaries stretch across 720 square miles and include the City of Los Angeles as well as all or parts of 31 municipalities and several unincorporated regions of Southern California.
Lion collaborated closely with the district in order to ensure its buses met the unique requirements posed by its large and diverse footprint. Each LionC bus purchased has a range of 155 miles on a single charge and incorporates an integrated wheelchair lift. Lion will also provide support and training to LAUSD from its recently opened Experience Center in the region, located in Alhambra, California. The buses are expected to be delivered in spring 2021.
The electric buses were funded in part by the California Energy Commission's (CEC) School Bus Replacement Program, and Lion collaborated closely with LAUSD to add additional options to the base CEC specification to accommodate the unique needs of its routes. Under the program, Lion was awarded five out of the six available categories after extensive evaluations of EV drive system technical specifications, real-world deployments and Original Equipment Manufacturer (OEM) EV capabilities. The CEC ranked Lion not only as the highest performing manufacturer in its technical evaluation, but also the manufacturer with the most cost-competitive bid.
Over the last decade, Lion has established itself as a leader in the all-electric school bus industry, having delivered over 300 all-electric school buses in North America with over 6 million miles driven since 2016. Lion's vehicles are distributed and serviced through the company's network of Experience Centers, including two locations in California along with facilities in New York, Washington, Florida and Arizona.
About Lion Electric
Lion Electric is an innovative manufacturer of zero-emission vehicles. The company creates, designs and manufactures all-electric class 5 to class 8 commercial urban trucks and all-electric buses and minibuses for the school, paratransit and mass transit segments. Lion is a North American leader in electric transportation and designs, builds and assembles all its vehicles' components, including chassis, battery packs, truck cabins and bus bodies.
Always actively seeking new and reliable technologies, Lion vehicles have unique features that are specifically adapted to its users and their everyday needs. Lion believes that transitioning to all-electric vehicles will lead to major improvements in our society, environment and overall quality of life.
Transaction with Northern Genesis
On November 30, 2020, Lion announced that it had entered into a business combination agreement and plan of reorganization pursuant to which, subject to the satisfaction of customary closing conditions, a wholly-owned subsidiary of Lion will merge with Northern Genesis Acquisition Corp. (NYSE: NGA), a publicly traded special purpose acquisition company focused on a commitment to sustainability and strong alignment with environmental, social and governance principles. Upon completion of the transaction, Lion is expected to be listed on the New York Stock Exchange (NYSE) under the new ticker symbol "LEV".
Lion Electric, The Bright Move
Thelionelectric.com
SOURCE The Lion Electric Co.
For further information: LION ELECTRIC: MEDIA: Patrick Gervais, Vice President of Marketing and Communications, Patrick.Gervais@thelionelectric.com, 514-992-1060; INVESTORS: Isabelle Adjahi, Vice President, Investor Relations and Sustainable Development, Isabelle.Adjahi@thelionelectric.com, 450-432-5466, extension 171
Related Links
thelionelectric.com
$NGA Investments to electrify public transit buses across Canada
By Connie Vitello -March 4, 20218
Link:
https://www.renewcanada.net/new-investments-to-electrify-public-transit-across-canada/
Today, Infrastructure and Communities Minister Catherine McKenna and the Minister of Innovation, Science and Industry Francois-Philippe Champagne announced $2.75 billion in funding over five years, starting in 2021, to enhance public transit systems and switch them to cleaner electrical power, including supporting the purchase of zero-emission public transit and school buses.
“Better public transit, cleaner air, quieter streets, and a planet safe for our kids – that’s the goal of our investment in zero-emission buses across Canada,” said Catherine McKenna, Minister of Infrastructure and Communities. “By making this investment, we’re tackling climate change while creating good jobs and supporting manufacturing right now, here at home.”
This funding is part of an eight year, $14.9 billion public transit investment recently outlined by Prime Minister Justin Trudeau, and will also support municipalities, transit authorities, and school boards with transition planning, increase ambition on the electrification of transit systems, and deliver on the federal government’s commitment to help purchase 5,000 zero-emission buses over the next five years.
“As part of its $10 billion Growth Plan, the Canada Infrastructure Bank (CIB) is committed to investing $1.5 billion in zero-emission buses,” said Ehren Cory, CEO of Canada Infrastructure Bank. “We will help create jobs, reduce greenhouse gases and make commutes cleaner.”
This investment will create more well paying jobs in Canada’s robust and growing electric vehicle manufacturing sector. Nova Bus in Saint-Eustache, Lion Electrique in Saint-Jérôme, GreenPower in Vancouver, and New Flyer in Winnipeg are examples of innovative companies that have been delivering zero-emission transit solutions.
Infrastructure Canada will ensure coordination between this investment and the Canada Infrastructure Bank commitment to invest $1.5 billion in zero-emission buses and associated infrastructure as part of its three year Growth Plan.
To date, Infrastructure Canada’s funding programs have supported the purchase of over 300 new zero-emission buses, and this trend is expected to accelerate.
“We welcome this Government of Canada funding announcement that will help cities and transit authorities across Canada transition to cleaner and more sustainable transit,” said Jim Watson, Mayor of Ottawa. “From our local perspective, we are rolling out four electric buses on our roadways this fall as part of a pilot project. Today’s funding opportunity announcement allows our staff to explore how we can speed up the electrification of the OC Transpo fleet.”
Mayor of Ottawa Jim Watson speaking at an Ottawa bus depot at today’s announcement.
(Screen capture from CPAC broadcast.)
Since 2015, the Government of Canada has approved $13.6 billion in funding towards more than 1,300 public transit projects across Canada . These investments have helped build more than 240 km of new public transit subway and light rail line, create over 380 km of active transportation trails, bike and pedestrian lanes, and already supported the purchase of over 300 zero emission buses.
“Zero-emission buses (ZEBs) will benefit Canadians by creating manufacturing and energy jobs in the low-carbon economy, while also transporting Canadians in a way that is safe, green, healthy and sustainable,” said Dr. Josipa Petrunic, president and CEO, Canadian Urban Transit Research & Innovation Consortium. “Transit agencies and municipalities in Canada are ready for electrification, and the funds announced today will empower them to move forward towards the goal of 5000 ZEBs.”
most of the spac taking a beating lately reminds me of the sector drop awhile back before they took off again.
$NGA $16.30 Great Add Here! Merger should complete by EOM!
$IPV MOUNTAIN VIEW, Calif. , March 2, 2021 /PRNewswire/ -- Aeva, Inc. ("Aeva" or the "Company"), a leader in next generation 4D LiDAR sensing and perception systems, announced today that Tim Willis has joined the Company as Vice President of Global Supply Chain, Manufacturing and Strategy. In this new position, Willis will lead Aeva's supply chain and manufacturing operations, providing strategic oversight on the Company's production of its industry-leading 4D LiDAR technology for mass market applications.
"Through his decades-long career as a global supply chain and manufacturing leader with the world's top technology companies like Apple and Waymo , and deep expertise in autonomous driving solutions, Tim has been instrumental in bringing some of the highest quality innovations to market," said Soroush Salehian , Co-Founder and CEO at Aeva. "We look forward to Tim's leadership as Aeva enters its next phase of development, moving towards production of our 4D LiDAR technology for a broad range of customers across automotive, consumer and industrial applications."
As a veteran supply chain, engineering and manufacturing executive with more than 30 years of experience, Willis brings strong organizational leadership and a wealth of industry expertise to Aeva. He was most recently the Chief Manufacturing and Global Supply Officer at Waymo , where he also served as General Manager of Waymo 's LiDAR sensor technology business unit. Prior to Waymo , Willis spent several years at Apple, last serving as the Senior Director of Global Supply Chain Management for iPhone, Watch, iPod and Accessories. He has held progressively senior management roles across industry leading organizations, including Lumileds , Motorola and Ford Motor Company.
"I am excited to join Aeva at this crucial stage in its lifecycle as it rapidly grows its business and operations as a dynamic leader in perception and sensing technologies," said Willis. "Aeva's market-first 4D LiDAR on chip solution represents a major accomplishment in the perception sensing and autonomous vehicle industry and is a testament to the commitment, innovation and entrepreneurial spirit of every employee at the Company. I look forward to working with our teams and our partners to bring this unique technology to mass market."
Aeva remains on track to complete its previously announced business combination with InterPrivate Acquisition Corp. ("InterPrivate") (NYSE: IPV), a publicly traded special purpose acquisition company, in the first quarter of 2021, subject to the adoption of the business combination agreement by the stockholders of InterPrivate and Aeva and other closing conditions. A special meeting of InterPrivate stockholders to approve, among other things, the proposed business combination will be held in a virtual format on March 11, 2021 at 11:00 a.m. Eastern Time . InterPrivate stockholders as of January 25, 2021 should submit their vote by March 10, 2021 . For more information regarding how to vote, please visit www.ipvspac.com/vote.
Upon further DD, they only own a small stake...
Investment in Unlisted Equities
Eat JUST,
Inc.
JUST is a food technology company, which believes everyone
deserves to eat well. JUST is a private company that primarily
operates in the United States and is constantly looking to make their
food taste better, healthier and more sustainable when compared to
animal-based foods. JUST believes there is untapped potential to
discover new food uses for different plant species around the world
and is making efforts to discover such plants. JUST products are
currently available in most major grocery chains in the United States
Amount of Investment:
$200,000(1)
Investment Type:
8,000 Series F Shares
Ownership % in
Investment Comp
It's in the prospectus on Eat Beyond website...
https://eatbeyondglobal.com/invest/
Interesting I was not aware of that!
https://www.linkedin.com/company/eat-just/
You don’t have to wait! Eat Just is a holding of the publicly traded Canadian co Eat Beyond (CSE: EATS) (OTCPK: EATBF)
Remember when we speculated FMCI could have been acquiring JUST? I’d like to see it in a SPAC soon!
https://www.cnbc.com/amp/2021/03/01/eat-just-good-meat-sells-lab-grown-cultured-chicken-in-world-first.html
It is #3 in my portfolio behins Shyworks and Resonant (obviously they are not SPACs)
$THBR is weeks from a DA with Indi Semiconductor, Skyworks management being poached left and right, and still kissing $11...
A special purpose acquisition company (SPAC) is a corporation formed for the sole purpose of raising investment capital through an initial public offering (IPO). Such a business structure allows investors to contribute money towards a fund, which is then used to acquire one or more unspecified businesses to be identified after the IPO.
When the SPAC raises the required funds through an IPO, the money is held in a trust until a predetermined period elapses or the acquisition is made. In the event that the planned acquisition is not made or legal formalities are still pending, the SPAC is required to return the funds to the investors, after deducting bank and broker fees.
A special purpose acquisition company is formed by experienced business executives who are confident that their reputation and experience will help them identify a profitable company to acquire. Since the SPAC is only a shell company, the founders become the selling point when sourcing funds from investors.
The founders provide the starting capital for the company and they stand to benefit from a sizeable stake in the acquired company. The founders often hold an interest in a specific industry when starting a special purpose acquisition company.
When issuing the IPO, the management team of the SPAC contracts an investment bank to handle the IPO. The investment bank and the management team of the company will agree on a fee to be charged for the service, usually about 10% of the IPO proceeds. The securities sold during an IPO are offered at a unit price, which represents one or more shares of common stock.
The prospectus of the SPAC mainly focuses on the sponsors, and less on company history and revenues since the SPAC lacks performance history or revenue reports. All proceeds from the IPO are held in a trust account until a private company is identified.
After the SPAC has raised the required capital through an IPO, the management team has 18 to 24 months to identify a target and complete the acquisition. The period may vary depending on the company and industry. The fair market value of the target company must be 80% or more of the SPAC’s trust assets.
Once acquired, the founders will profit from their stake in the new company, usually 20% of the common stock, while the investors receive an equity interest according to their capital contribution.
In the event that the predetermined period lapses before an acquisition is completed, the SPAC is dissolved, and the IPO proceeds held in the trust accounts are returned to the investors. When running the SPAC, the management team are not allowed to collect salaries until the deal is completed.
A SPAC floats an IPO to raise the required capital to complete an acquisition of a private company. The capital is sourced from retail and institutional investors, and 100% of the money raised in the IPO is held in the trust account. In return for the capital, investors get to own units, with each unit comprising a share of common stock and a warrant to purchase the common stock at a later date.
The purchase price per unit of the securities is usually $10.00. After the IPO, the units become separable into shares of common stock and warrants, which can be traded in the public market. The purpose of the warrant is to provide investors with additional compensation for investing in the SPAC.
The founders of the SPAC will purchase founder shares at the onset of the SPAC registration, and pay nominal consideration for the number of shares that results in a 20% ownership stake in the outstanding shares after the completion of the IPO. The shares are intended to compensate the management team, who are not allowed to receive any salary or commission from the company until a combination transaction is completed.
The units sold to the public comprise a fraction of a warrant, which allows the investors to purchase a whole share of common stock. Depending on the bank issuing the IPO and the size of the SPAC, one warrant may be excisable for a fraction (either half, one-third or two-thirds) or a full share of stock.
For example, if a price per unit in the IPO is $10, the warrant may be exercisable at $11.50 per share. The warrants become exercisable either 30 days after the De-SPAC transaction or twelve months after the SPAC IPO.
The public warrants are cash-settled, meaning that the investor must pay the full cost of the warrant in cash to receive a full share of stock. Founder warrants, on the other hand, maybe net settled, meaning that they are not required to deliver cash to receive a full share of stock. Instead, they are issued with shares of stock with a fair market value equal to the difference between the stock trading price and the warrant strike price.
Useful Website
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