WONDERFUL WORLD OF WARRANTS

[jtomm]

Thanks. Yeah, tons of spacs returning money and shutting down these days. Sounds like there were some SEC and tax rule changes that prompted some of this. Even the ones that do find mergers are suffering huge redemptions, which means the merged-in company is getting wayyy less money than the spac raised. This leads me to believe that the merged-in company still willing to go thru with such a transaction is pretty desperate. If you thought you were gonna get $300m by merging with the spac but becuz of massive redemptions only end up getting, say, $45m -- that suggests to me you're a money-losing company just trying to stay alive a little longer and simply can't find money anywhere else.

Some market operator buys up most of the remaining float before the transaction is completed and can run the thing once it comes public. That seems like the game to me.