5 votes
Accepted

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

Are there any SPAC stocks that have been in the stock market for more than two years and is still a SPAC? This depends on the jurisdiction. The rules are typically specified by stock exchanges and/or ...
Flux's user avatar
  • 17k
4 votes
Accepted

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

A traditional IPO involves a lot of steps. The company has to find an investment bank. The investment bank has to do its due diligence, work out the agreement with the company, and make a number of ...
Bob Baerker's user avatar
  • 76.4k
2 votes
Accepted

Why do SPAC units typically start trading at 10 USD?

I would guess that $10 pricing just evolved from early SPACs issuing at $10 and others just followed. It has no direct relevance but in the 90's, I participated in many traditional IPOs. Some ...
Bob Baerker's user avatar
  • 76.4k
2 votes

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

In my opinion following is applicable in your case. The acquisition price you received on original share must be spread evenly on new securities. This means the new share should get a cost basis $8....
Abs's user avatar
  • 152
2 votes

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

Bankruptcy may be one reason, but you also see these balances in startups that are initially not profitable but have raised a lot of cash in equity and/or debt financing. The reason people invest in ...
D Stanley's user avatar
  • 135k
2 votes
Accepted

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

The IPO pricing of a SPAC at $10 is irrelevant to you as a target company shareholder. All that matters to you is what is being exchanged for your shares, i.e. how much cash (if any) and how many SPAC ...
Orange Coast- reinstate Monica's user avatar
1 vote

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

With the help of the answers of Dave Harris and D Stanley, I think I may have worked out an answer to the original question. If this answer contains errors, anyone with the relevant expertise is ...
SapereAude's user avatar
1 vote

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

You see this, primarily, with firms that have gone bankrupt sometime in the past and where preferred shares were created by the bankruptcy court in exchange for debt. It can also be created to avoid ...
Dave Harris's user avatar
  • 4,277
1 vote

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

So at what time does a SPAC aquisition represent a cash injection for the target? Does it happen systematically or only on certain deals? It's common, not systematic, to have a funding event for the ...
Orange Coast- reinstate Monica's user avatar
1 vote

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

They issue units because when they are fund-raising they lay-out the terms on how much a certain amount of investment is convertible into shares/warrants. So for starters, it is a generally easier ...
erikwilder's user avatar
1 vote

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

A warrant is like a long term option so it's fairly similar to the mechanics of options. You've posted several examples so I'm going with the one from your comment where RTP is $13, RTP/WS is $3.75 ...
Bob Baerker's user avatar
  • 76.4k
1 vote

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

I understand the use case in options because you could place a put on a lower price Are you suggesting that only out-of-the-money options are useful? And so the only useful options with strikes below ...
nanoman's user avatar
  • 29.7k
1 vote

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

Warrant redemptions dilute the common shares, leading to a drop in price in most cases. Here's an article that discusses dilution. I leave it to you to determine if it answers your question properly.
Bob Baerker's user avatar
  • 76.4k

Only top scored, non community-wiki answers of a minimum length are eligible