61–70 of 119 posts
I'm crossing my fingers! We get a daily file from a vendor containing corporate action data, because somebody "needs" it for some report or something, and so we dutifully ingest it into our system. But every 2 or 3 months, a specific planned SPAC merger shows up in that file. Something to do with gambling and crypto/blockchain, based in the Med. Every single time it shows up, it causes the vendor file to fail the ven…
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Due to how SPACs work, investors will be getting most of their money back. Typically they IPO at $10. The money gets returned if no deal is made. > Concord’s sponsors will throw in the towel and return roughly $10.17 a share to investors, the SPAC said in a subsequent filing. The stock closed at a high of $13 in November 2021 and garnered attention from Wood’s Ark Investment, which is among the SPAC’s biggest investo…
Do they all IPO at $10 price and if so why?
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Not really. You just have to ask yourself why these private companies were even going the SPAC route rather than do a regular IPO. The answer was usually that these were not particularly great companies, and doing an IPO means the company is put under a lot of scrutiny. SPACs are a way to avoid that, so insiders can cash out.
One that I know of is Wheels Up. It's a membership company for flying privately. Private flights are insanely expensive, so at least there's a need. Unfortunately, there are also pretty high costs. No idea what Wheels Up financials look like.
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Not sure why you’re getting downvoted, this is a primarily tech forum and a SPAC is a primarily business concept. It means a “special purpose acquistion company”. It’s effectively a company set up for the express purpose of facilitating an acquistion or merger of companies, so that assets or IP ownership can be moved in an optimally tax or otherwise cost efficient way. Many have argued they provide no value except fo…
The other big reason they’ve become so popular lately is that they allow private companies to go public without an IPO (thus avoiding a lot of the disclosures that would otherwise be required). Public SPAC created with no business -> raises funding from investors (or marks) -> “acquires” private company -> SPAC renames to private company’s name -> private company is now public without IPO
Are SPACs inherently bad or do they attract lousy offerings (or is that the same thing)?
> The pair of cancellations, which happened less than an hour apart Is this literally just two cancellations? I never put any money into a SPAC, but I suspect the shareholders are better off with their money returned than going into a bad deal. Concord raised money at $10/share, and they are returning $10/share back. I don't feel bad for the investor that bought it for $13/share from an exchange and lost $3. Concord…
Before I read the article, I was wondering if the SEC stepped in, or if some sort of financial services Sybil attack just unwound due to a bunch of not-so-independent-after-all players deciding to cut and run.
It is interesting that they have clauses to return shareholder money if the deals are cancelled (otherwise, this would be indistinguishable from a pump and dump scam).
Are SPACs inherently bad or do they attract lousy offerings (or is that the same thing)?
That seems, inherently, to be a loophole that can be easily exploited (See Nikola). So, there’s that.
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I think RocketLab qualifies.
> I think RocketLab qualifies. They look pretty good, but I think it's responsible to hold off on calling them a success until they launch Neutron. From what I can tell, it's not very likely that they can be profitable with just Electron.
Source: https://s28.q4cdn.com/737637457/files/doc_financials/2022/q3...
I'm crossing my fingers! We get a daily file from a vendor containing corporate action data, because somebody "needs" it for some report or something, and so we dutifully ingest it into our system. But every 2 or 3 months, a specific planned SPAC merger shows up in that file. Something to do with gambling and crypto/blockchain, based in the Med. Every single time it shows up, it causes the vendor file to fail the ven…