Questions tagged [spac]

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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 ...
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1answer
59 views

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 ...
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1answer
91 views

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 ...
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0answers
104 views

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 ...
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1answer
93 views

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 ...
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2answers
82 views

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 ...
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1answer
147 views

Why do SPAC units typically start trading at 10 USD?

I read on https://www.kiplinger.com/investing/stocks/601168/spacs-to-buy: Generally, the SPAC (Special-purpose acquisition company) will offer at $10 per "unit." Each unit includes one ...
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1answer
3k views

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 ...
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1answer
176 views

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 ...