# Lifeline Spac I merged with Canatu
**URL:** https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318
**Category:** Osakkeet
**Tags:** osakkeet, lifeline
**Created:** [September 29, 2021, 6:29am UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318 "2021-09-29T06:29:16Z")
**Posts on this page:** 20
**Page:** 2
### Author:  [@jukkendal](https://forum.inderes.com/u/jukkendal)
#### Post date: [October 9, 2021, 5:30pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/24 "2021-10-09T17:30:05Z")
It’s a good idea to find out the bank organizing the subscription well in advance, to avoid any last-minute rush. Here, I’m referring to a bank that allows you to make a subscription, for example, for investment accounts (AOTs) from other banks.
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### Author:  [@Hanhi](https://forum.inderes.com/u/Hanhi)
#### Post date: [October 11, 2021, 3:39am UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/25 "2021-10-11T03:39:17Z")
I wrote about this in the OST thread, and the reason seems to be that since OST has this 50k limit, only the bank that holds your OST can monitor the fulfillment of that limit per customer.
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### Author:  [@LakeBoodom](https://forum.inderes.com/u/LakeBoodom)
#### Post date: [October 11, 2021, 4:49am UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/26 "2021-10-11T04:49:15Z")
Has Lifeline commented on the problematic situation if the target were to be found in their own portfolio? In that case, Lifeline would be negotiating, for example, on the valuation from both sides of the table. Lifeline SPAC (Special Purpose Acquisition Company) should be able to negotiate a lower valuation, whereas Lifeline Venture Fund’s goal is fundamentally the opposite.
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### Author:  [@Santtulainen](https://forum.inderes.com/u/Santtulainen)
#### Post date: [October 11, 2021, 4:55am UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/27 "2021-10-11T04:55:31Z")
At least in the Inderes company presentation video, they said that they would, of course, recuse themselves from the necessary decision-making forums if the company they deemed best happened to be in their portfolio.
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### Author:  [@KalleH](https://forum.inderes.com/u/KalleH)
#### Post date: [October 11, 2021, 5:01am UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/28 "2021-10-11T05:01:42Z")
If they were to buy at a pig price from their own portfolio, they would ruin the company’s reputation and the valuation of Lifeline Space’s stock. In such a case, the deal would hardly go through, and even if it did, all compensation schemes are tied to the stock’s valuation. I personally do not consider this a real risk, even though it looks like one on paper.
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### Author:  [@LakeBoodom](https://forum.inderes.com/u/LakeBoodom)
#### Post date: [October 11, 2021, 5:17am UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/29 "2021-10-11T05:17:31Z")
At the very least, this is how it should be. But that doesn’t change the fact that when they negotiate terms as a SPAC with representatives of company XYZ, they also know that I’m sitting on the other side of the table.
@KalleH Reputation is definitely on the line. I personally still consider such a structure quite questionable. Would this generate more discussion if it were some other entity than Lifeline?
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### Author:  [@kettunen](https://forum.inderes.com/u/kettunen)
#### Post date: [October 11, 2021, 5:35am UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/30 "2021-10-11T05:35:01Z")
Earlier I brought up the matter a bit, so it is possible
> **[Lifeline Spac I yhdistyi Canatuun](https://forum.inderes.com/t/lifeline-spac-i/23318/9?u=kettunen)**
>
> Lifeline 1 SPAC (LL1SPAC) antiesite: https://www.lifeline-spac1.com/app/uploads/2021/10/Lifeline-SPAC-I-Oyj-Esite-4.10.2021.pdf Muutamia poimintoja: Listautumiskulut maksetaan perustajien pussista, mutta palautetaan yhdistymisessä 👎 ...
It can also be found in the anti-prospectus risks, opened from the perspective of the company’s operations and principles.
I also believe this was touched upon in the presentation video, as @Santtulainen already noted.
A conflict of interest would be obvious, but disqualification comes into question immediately if any person has interests in two directions. Surely, partly for this reason, there are many operators on the owners’ and sponsors’ side. Of course, discussions can always be held informally and shadows cast in different directions, but whether there is a basis in truth for it is another matter. It remains to be seen, but fundamentally, it has already been taken into account.
Dozens of suitable targets from the Nordic countries have already been scanned, so it is very possible, if not probable, that the target company will come from outside Lifeline Ventures. The source is again the presentation video and my own memory traces from there 😅
> [@KalleH](#):
>
> If they bought a company from their own portfolio at an exorbitant price, they would ruin their reputation and the valuation of Lifeline SPAC shares.
I also believe they will handle it honorably. I doubt that the ‘1’ in the company name is there for no reason 😉
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### Author:  [@LakeBoodom](https://forum.inderes.com/u/LakeBoodom)
#### Post date: [October 11, 2021, 5:51am UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/31 "2021-10-11T05:51:34Z")
Indeed, it would look better if the company was outside their portfolio.
I don’t want to belabor this, but I personally don’t see how one can be recused in a situation where I own Company X, and then I approach Company X through Company Z and begin negotiating a corporate arrangement between X and Y. For me, recusal means stepping aside completely from a matter where I have a conflict of interest. But it’s not recusal to personally negotiate a “deal” with a company I own and where I have many interests, even if I’m not de facto involved in the process.
The people at Lifeline are admittedly reputable for a reason, but there’s a slight feeling here that because they are “good guys,” there’s no need to unnecessarily consider potential conflicts of interest. If, purely speculatively, Alexandria Bank were to create a SPAC and they had holdings in unlisted companies and said they would certainly recuse themselves if a target was found there, I would argue that there would be a bit more discussion about the matter.
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### Author:  [@Musti](https://forum.inderes.com/u/Musti)
#### Post date: [October 11, 2021, 6:08am UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/32 "2021-10-11T06:08:00Z")
> [@LakeBoodom](#):
>
> The individuals at Lifeline are admittedly reputable for a reason, but there’s a slight feeling here that because they are “good guys”, there’s no need to unnecessarily consider potential conflicts of interest. If, purely speculatively, Alexandria Bank were to create a SPAC and they had holdings in unlisted companies and said that they would definitely recuse themselves if a target was found there, I would argue that there would be a bit more discussion about it.
But isn’t that precisely the point here? When investing in stocks (i.e., companies), incompetent management is always a risk that must be considered. Many of us emphasize management’s competence as an investment criterion, and I don’t see why this would be a different case. If you trust them, invest. If you don’t, stay away. There are no clear mechanisms in other listings either that would protect investors from foolish management decisions. 🙂
In addition, there’s this:
> [@Pohjolan\_Eka](#):
>
> 
>
> **The redemption price is 10 euros, meaning you get your money back if you don’t approve the merger or if a target isn’t found! Awesome!**
So, in principle, an investor can withdraw from the game if the terms or the valuation of the acquisition target are not appealing.
In itself, valuing unlisted companies is always a bit challenging, especially for tech startups whose revenue projections are almost invariably optimistic guesses. If one wants to speculate on the risks regarding the acquisition target’s valuation, I personally see over-optimism as one major risk. Among the list of decision-makers, there are a remarkable number of people who, based on their public image at least, see more opportunities than risks everywhere. 🙂 While this is positive, it also slightly increases the risk of overvaluation, whether the company comes from within Lifeline’s portfolio or from outside.
The timing is also interesting, as many potential target companies’ previous funding rounds have been done with huge valuations. If funding taps and acceptable multiples start to freeze now, there could be a fierce discussion about valuations. Few current financiers of a target company would be willing to accept a lower valuation without gritting their teeth. At the same time, the market might not accept equally high valuation multiples for a SPAC after a merger.
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### Author:  [@Santtulainen](https://forum.inderes.com/u/Santtulainen)
#### Post date: [October 11, 2021, 8:53am UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/33 "2021-10-11T08:53:27Z")
For companies, participating in the offering for non-Danske customers seems to be cumbersome, as online subscription is not possible. I should have read the prospectus more carefully to avoid this last-minute rush. The public offering is estimated to end tomorrow, so I need to hurry to get an appointment at the office and make the subscription. If I run out of time, I will have to participate in the offering in person or not participate at all and buy the shares from the list.
This is not directly related to the company itself, but I felt it necessary to share this information if there are other investors here investing through a company 😊
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### Author:  [@Vastarannan\_Kiiski1](https://forum.inderes.com/u/Vastarannan_Kiiski1)
#### Post date: [October 11, 2021, 9:07am UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/34 "2021-10-11T09:07:20Z")
> **[Tulikuumiin startup-markkinoihin en koske pitkällä tikallakaan](https://www.sijoitustieto.fi/sijoitusartikkelit/tulikuumiin-startup-markkinoihin-en-koske-pitkalla-tikallakaan)**
>
> Wikipedia: Startup-yritys tarkoittaa nuorta kasvuhakuista yritystä. Sillä voidaan tarkoittaa myös yritystä, joka vasta kehittää ensimmäistä tuotettaan eikä tuota vielä voittoa. Julistaudun omalla päätökselläni Kampin Nostradamukseksi. Uusimmassa...
On the same page as Aki.
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### Author:  [@StockTycoon](https://forum.inderes.com/u/StockTycoon)
#### Post date: [October 11, 2021, 9:38am UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/37 "2021-10-11T09:38:40Z")
For most startups, going public remains a dream. Even for Modulight, it took decades, so investing in startups requires patience.
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### Author:  [@LakeBoodom](https://forum.inderes.com/u/LakeBoodom)
#### Post date: [October 11, 2021, 9:51am UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/38 "2021-10-11T09:51:20Z")
In my opinion, Akin’s (Ahopelto) article doesn’t really relate to Lifeline Spac at all, even though he was commenting on Ahopelto. LL Spac is not looking for an early-stage (startup) target, but rather a growth company that already has significant revenue.
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### Author:  [@III21](https://forum.inderes.com/u/III21)
#### Post date: [October 11, 2021, 10:38am UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/39 "2021-10-11T10:38:45Z")
And “whose business model has proven to be effective.” Whatever that clause ever means in practice.
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### Author:  [@Lusu-81](https://forum.inderes.com/u/Lusu-81)
#### Post date: [October 11, 2021, 12:32pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/40 "2021-10-11T12:32:08Z")
My apologies, I didn’t notice the word “company.”
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### Author:  [@Omavaraisuushaaste](https://forum.inderes.com/u/Omavaraisuushaaste)
#### Post date: [October 11, 2021, 2:31pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/41 "2021-10-11T14:31:12Z")
Even though the offering ends tomorrow, I decided to write a quick analysis of it.
> **[Lifeline (SPAC) listautumisanti-analyysi – korkeaa kasvua ja korkeaa riskiä -...](https://www.omavaraisuushaaste.com/lifeline-ventures-spac-listautumisanti-analyysi/)**
>
> Lifeline (SPAC):n listautuminen on Suomen pörssin toinen SPAC-listautuminen sitten aikaisemman Virala Acquisition Companyn. Tämänpäiväisessä kirjoituksessa keskitynkin ennen kaikkea Lifeline SPAC:n tavoitteisiin, SPAC:ien yleistymisen pohtimiseen...
In my opinion, there are two important points here, one of which had already come up in the discussion. At the same time, I think the conflict of interest, where SPAC I can invest in Lifeline’s existing investments, is a bit too conspicuous. Of course, if the investment is good, why wouldn’t one want to join? This is a 100% trust case, as SPACs always are, and if you don’t trust the founders of the SPAC, you shouldn’t invest in it.
Secondly, the return on Lifeline’s funds is very strong, and on average, Lifeline has been successful in its investments. However, an extremely big difference comes from the fact that this is just one dart that can be thrown at one company. And the success rates of such an investment in growth companies are on a completely different level than those of funds. In one fund, one Supercell saves ten completely failed investments.
I would say that the risk in this SPAC is **extremely high** (edit: post-merger, that is), even though as a millennial, I should probably be excited about growth companies and unfair competitive advantages. I don’t think the risk has been highlighted enough. A lot depends on market sentiment, which way this will go before a suitable company is found. However, now is no longer the hottest market for growth stocks.
I personally trust the guys’ expertise and that the terms are genuinely good for small investors as well, but I will skip this nonetheless. I still believe that SPACs are quite unnecessary in Finland, as we have public offerings, unlike, for example, in the US.
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### Author:  [@LakeBoodom](https://forum.inderes.com/u/LakeBoodom)
#### Post date: [October 11, 2021, 2:58pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/42 "2021-10-11T14:58:30Z")
Lifeline Ventures usually invests at a very early stage (even pre-seed, seed stage), which means the risks are significantly higher that the dart won’t hit close to the bullseye, but will fly past the sauna wall, and the business model of the targets is yet unproven. A SPAC, on the other hand, presumably invests in a relatively “mature” company where the business model is already proven. So, from this perspective, I don’t see that comparison as entirely relevant.
I do agree that the question is whether SPACs are needed in Finland. Of course, they are allowed to try, as quite a bit of money is made with them. The public then decides whether to invest; of course, the public is already involved through pension companies, whether they want to be or not.
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### Author:  [@KalleH](https://forum.inderes.com/u/KalleH)
#### Post date: [October 11, 2021, 5:07pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/43 "2021-10-11T17:07:08Z")
> [@Omavaraisuushaaste](#):
>
> I would say that the risk in this SPAC is **extremely high**.
The risk is high if you decide to hold the shares even after the merger. A good example is the forum’s favorite de-SPAC, Hyzon, currently trading below six dollars. But this is a whole new risk analysis that you can do completely for free once the acquisition target is presented. In Lifeline SPAC, I don’t see any other risk than a theoretical blow-up where you wouldn’t get your money back in a redemption. Of course, time passes here, but a 0% return for a couple of years still beats a negative interest rate bank account. You should get almost 10 euros from the stock exchange unless there is a significant market meltdown in the interim.
So, in short, the risk in Lifeline SPAC is extremely low. The post-merger company might have high risk, but you can examine that card for free then.
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### Author:  [@Mistakesweremade](https://forum.inderes.com/u/Mistakesweremade)
#### Post date: [October 11, 2021, 6:29pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/44 "2021-10-11T18:29:06Z")
I haven’t seen any discussion about this, but have others considered that Lifeline shares should not be acquired on a share savings account (Osakesäästötili, OST) at all if one intends to hold them through the upcoming merger? Share savings accounts are only allowed to hold shares, so I would assume that the warrants issued in the merger cannot be held there, and they might be subject to forced sale. Does anyone have experience with foreign SPACs and how their warrants have been handled in share savings accounts?
In this regard, it’s probably good that subscribing to an OST is only possible for Danske customers during the listing, but it’s good to be aware of this potential restriction if one plans to buy shares from the exchange after trading begins.
Can anyone tell me if my concern is unnecessary? For me, it doesn’t really matter, as I can hold these on a regular investment account (AOT), even though generally an OST is for investments denominated in euros.
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### Author:  [@StockTycoon](https://forum.inderes.com/u/StockTycoon)
#### Post date: [October 11, 2021, 6:33pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/45 "2021-10-11T18:33:49Z")
You only get the warrants after the merger, if you voted for it. In principle, a query can then be sent to these OST owners, asking which normal AOT these warrants can be placed on, if the tax authorities consider it a problem with regard to OST.
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