Questions tagged [spac]

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3 answers

If total assets less total liabilities is positive, how should negative shareholders' equity be interpreted?

For some recently public companies, total assets minus total liabilities is a positive number, but shareholders' equity is negative. In some cases, this appears to be the result of a past sale of ...
SapereAude's user avatar
-1 votes
1 answer

Minimum hold period for initial investors in IPO

Back in 2020 I had some stocks that used to be SPACs and watched their value plummet over a span of a few days as the initial investors were allowed to sell, because their initial required holding ...
Ian's user avatar
  • 223
0 votes
1 answer

How do early-stage share prices of companies going public via SPAC change?

I currently have a number of series C, non-voting shares (< 1000) in a company that would go public via SPAC on this Monday. Since the price of each unit of SPAC is always price at $10 per unit for ...
user177196's user avatar
2 votes
1 answer

Are there any SPAC stocks that have been in the stock market for more than two years and is still a SPAC?

I read that the timeline for a SPAC company is 24 months. If it didn't complete an acquisition, it will be dissolved. So, if I see a random stock chart and found that it has a value (was listed) for ...
huab's user avatar
  • 927
0 votes
3 answers

How do SPAC targets (acquired companies) benefit from additional cash upon merging with a SPAC?

Hope this is the right place for the question. There are many articles on SPACs explaining how things work, so I'll cut straight to the question: I have read and heard people say that a SPAC deal can ...
Jean Monet's user avatar
1 vote
1 answer

Why is it common to selloff SPAC shares just before merger?

There is a company I am familiar with that is the target of an SPAC. I'm unfamiliar with investing in SPACs, but what I have learned is that more often than not, the price of the ticker drops after ...
pstatix's user avatar
  • 353
1 vote
1 answer

Why do SPACs issue units instead of shares and warrants only?

From my understanding, SPAC units are sold during SPAC IPOs. Later, these units can be converted into shares and warrants. What I don't understand is: why is it necessary to issue units in the first ...
Flux's user avatar
  • 16.9k
1 vote
0 answers

SPAC: FTCV -> eToro: What may become of my FTCV shares post merger?

After yesterday's announcement that eToro and FTCV are planning on merging, FTCV shares became available to eToro users. Target for the merger of the SPAC and eToro will be Q3 2021. Opening a position ...
dev_does_software's user avatar
4 votes
1 answer

Why is money for SPAC raised even before they have found a potential company to merge with?

From what I have understood, A SPAC shell co. is setup and raises funds through an ipo thereby getting a period of 2 years to find a company they can merge with. Is there a specific reason that it ...
Arya Lisa's user avatar
1 vote
2 answers

Why would you buy a warrant if the stock is over the strike price?

I am researching Spacs and am curious why you might buy a warrant if the spac stock price is over the usual 11.50 strike price? I understand the use case in options because you could place a put on a ...
frankie's user avatar
  • 693
0 votes
1 answer

Why do SPAC units typically start trading at 10 USD?

I read on Generally, the SPAC (Special-purpose acquisition company) will offer at $10 per "unit." Each unit includes one ...
Franck Dernoncourt's user avatar
2 votes
1 answer

Determining cost basis in a SPAC unit split into stock and warrants

I bought 400 shares of IPOB.U at $11.84/unit. Each unit can be split into 1 share + 1/3 warrant when the holder desires (after the stock and warrants start trading freely, but not before.) I called my ...
spac splitter's user avatar
0 votes
1 answer

Why do SPAC warrants only become exercisable 30 days after the de-SPAC transaction?

I noticed that most (all?) SPAC warrants only become exercisable on the later of: (a) 12 months after the SPAC's IPO date, (b) 30 days after the de-SPAC transaction. I am surprised by this uniformity ...
Flux's user avatar
  • 16.9k