Special Purpose Acquisition Co

[tika1]

Mystic ( GFC )

This one is the most difficult SPAC Warrant I ever invested. Initially their target was to find some Asian company. There was a time it was about to merge with Austrian Energy company. But merger did not happen.

Fast forward, almost very phase of its SPAC life, it merged with component of multiple hedge funds ( Still water is one of them ) and started a new company called Gerova Financial. Since then stock price and common price started to take a nose dive. They claimed they do Reinsurance business. You can compare this company with GLER.

But there were some changes happened. It keep on hiring new officers and changed management. Hired IR firm. Got delisted notice from NYSE and postponed its hearing.

The most important development is now preferred holders ( hedge fund guys ) want to convert to common shares. Market is taking as great news. But I am worried why they reduce from conversion price 7.5 to 6.

Book value:
Current book value is 832 Million and expected book value for 2010 is 971 million ( if warrant is exercised it will be higher).

No of shares:
I don't know exact number but I believe it will be in range of 140 million after conversion ( including 17 million warrants )

These company ( reinsurance business )trades around 7X of earning and 1.2x of book value. Hope it helps.

Hey I have very amateur investor ( started 2-3 year ) so please do you DD yourself.