# 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:** 3
### Author:  [@StockTycoon](https://forum.inderes.com/u/StockTycoon)
#### Post date: [October 11, 2021, 6:37pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/46 "2021-10-11T18:37:39Z")
> [@Omavaraisuushaaste](#):
>
> I am still of the opinion that SPACs are quite useless in Finland, as we have public offerings, unlike, for example, in the US.
On the other hand, public offerings are becoming a joke in Finland too, if you make maximum subscriptions there. You get, like, less than €500 of ownership even if you subscribed for over €100,000. SPACs are good because you can take a position with, say, a million euros, before the merger target is announced. In my opinion, a very welcome addition to the Finnish stock exchange as well.
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### Author:  [@TJT](https://forum.inderes.com/u/TJT)
#### Post date: [October 11, 2021, 6:38pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/47 "2021-10-11T18:38:46Z")
These would belong in the IPO thread since they don’t concern the company itself.
But a warrant is actually a subscription right that has just been given a much more marketable name.
I myself have used subscription rights on an equity savings account (OST) once, and there were no problems as long as the subscription was made with funds within the OST.
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### Author:  [@III21](https://forum.inderes.com/u/III21)
#### Post date: [October 11, 2021, 6:44pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/48 "2021-10-11T18:44:16Z")
I think Lifeline’s warrants have pretty good terms, at least, if a good merger target is found and the stock price benefits from it. At best, you can get the stock for 11.5 euros, even if the price trades above 18 euros. Theoretically, that would be “risk-free” profit if you immediately sold the shares acquired with warrants.
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### Author:  [@Omavaraisuushaaste](https://forum.inderes.com/u/Omavaraisuushaaste)
#### Post date: [October 11, 2021, 6:53pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/49 "2021-10-11T18:53:00Z")
Yeah, that’s what I mainly meant, since we’re talking about SPACs - I phrased it poorly. It’s a different matter, of course, to hold a 10 euro stock at around 9.8-10.1 euros and ponder profound thoughts while nothing happens. However, I don’t see any point in owning the stock at all if you don’t intend to wait until the merger is completed - unless you live in the SPAC euphoria mindset where finding a company = stock price increase = zero risk, which many people might still mistakenly associate with SPACs, especially since the only SPAC in Finland worked exactly like this.
And of course, I personally feel that even if it’s unlikely to take 2 years to find a target company, losing two years of returns would be a risk in itself, even if it beats a bank account, except of course in the event of a market crash.
And @LakeBoodom It’s true that the risk is significantly lower than for start-ups, but even though recent years have been a boom for growth companies, it’s perhaps good to remember that the mere pricing of growth companies increases their risk as an investment. There are tons of fast-growing, profitable growth companies in the world that I wouldn’t invest a single euro in, and the same is surely true for all investors.
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### Author:  [@KalleH](https://forum.inderes.com/u/KalleH)
#### Post date: [October 11, 2021, 7:14pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/50 "2021-10-11T19:14:25Z")
> [@Omavaraisuushaaste](#):
>
> unless one lives in that SPAC-mania mindset where finding a company = stock price increase = zero risk, which many may still incorrectly have about SPACs, especially since the only SPAC in Finland worked exactly like this.
This is precisely the point. There is a greater-than-zero probability of a stock price jump (or a genuinely good company at a reasonable price) when the target is announced. Since Lifeline has a good track record and the target sector is hot, I consider the probability quite high. In the US, the sheer number of SPACs diluted interest and caused target company valuations to skyrocket. Since we don’t yet have this problem here in the Nordics, we can relive the SPAC mania of a year ago.
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### Author:  [@StockTycoon](https://forum.inderes.com/u/StockTycoon)
#### Post date: [October 11, 2021, 7:34pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/51 "2021-10-11T19:34:17Z")
And in the US, many SPACs have a strong desire to invest in hype startups founded about three years ago that are far from ready for the stock market.
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### Author:  [@Sisu1](https://forum.inderes.com/u/Sisu1)
#### Post date: [October 12, 2021, 4:17am UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/52 "2021-10-12T04:17:20Z")
It’s true that there’s a risk of losing two years’ worth of returns from an alternative investment.
However, you might have missed Lifeline’s redemption clause.
At least I didn’t find any mention of it in your blog, and you talk about “extremely high risk.”
It can be found on page 9 of the prospectus PDF:
So, if you don’t like the company or the valuation, and you vote against the merger but it still goes through, you get your subscription price back.
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### Author:  [@Tedmel](https://forum.inderes.com/u/Tedmel)
#### Post date: [October 12, 2021, 5:43am UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/53 "2021-10-12T05:43:57Z")
Yes, you can hold and sell SPAC warrants in a tax-efficient investment account (OST), but you cannot buy them there.
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### Author:  [@Heimo\_Vesa](https://forum.inderes.com/u/Heimo_Vesa)
#### Post date: [October 12, 2021, 12:26pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/55 "2021-10-12T12:26:12Z")
> [@Omavaraisuushaaste](#):
>
> It’s a different matter to hold a 10 euro stock at around 9.8-10.1 euros and ponder profound thoughts while nothing happens. However, I don’t see any point in owning the stock at all if one isn’t planning to wait until the merger happens – unless one lives in the SPAC hype mindset where finding a company = stock price increase = zero risks, which many might still mistakenly believe about SPACs, especially since the only SPAC in Finland operated exactly this way.
Any thoughts on how these SPACs generally perform on the stock market? I’m wondering if there’s any reason to go through the trouble of participating in the offering if one could imagine buying it directly from the market at approximately the offering price? Do these typically perform independently of market sentiment?
I was thinking I’d gladly take a small bundle of these for my OST (Osakesäästötili/Share Savings Account), but the offering seems to be for a regular book-entry account, if I looked correctly, so I’d be inclined to buy from the market just to avoid the hassle.
Edit: However, now that I read the previous messages more carefully, it started to become clear that the OST (Share Savings Account) apparently doesn’t work for this stock. And I specifically thought it would be easy to put it there and forget about it in a long-term portfolio as a single risky investment, free to live its own life for the next 5+ years.
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### Author:  [@Koala](https://forum.inderes.com/u/Koala)
#### Post date: [October 12, 2021, 1:23pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/56 "2021-10-12T13:23:53Z")
It seems the subscription period has ended. According to the IPO schedule, the results will be announced the day after tomorrow, October 14, 2021.
edit 3 minutes later: I found the subscription page through a search…
[https://danskebank.fi/sinulle/tuotteet/saastaminen-ja-sijoittaminen/annit/lifeline](https://danskebank.fi/sinulle/tuotteet/saastaminen-ja-sijoittaminen/annit/lifeline)
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### Author:  [@Koala](https://forum.inderes.com/u/Koala)
#### Post date: [October 12, 2021, 1:30pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/58 "2021-10-12T13:30:58Z")
Okay, so the estimated schedule held up.
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### Author:  [@Juippi2](https://forum.inderes.com/u/Juippi2)
#### Post date: [October 12, 2021, 2:14pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/59 "2021-10-12T14:14:36Z")
It’s rare to find such a cheap option. Imagine you buy shares for 100,000 euros, paying 1% interest to the bank (collateral and credit history in order). You’d pay about 1,000 euros in interest per year, and about 2,000 over two years. The possibility of the stock rising within two years, if a suitable target is found, is very likely. There’s no upper limit to the stock’s value, but losses are capped at interest expenses, which are also tax-deductible. Did I miss anything?
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### Author:  [@Anssi2](https://forum.inderes.com/u/Anssi2)
#### Post date: [October 12, 2021, 2:43pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/60 "2021-10-12T14:43:09Z")
This option aspect was also the reason why I went into this IPO bigger than previous IPOs, and I’m happy to buy more for my portfolio if it’s available around ten euros. If you think about this through Black-Scholes, the value of the “option” should be about 2 euros.
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### Author:  [@Nortti1](https://forum.inderes.com/u/Nortti1)
#### Post date: [October 12, 2021, 2:43pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/61 "2021-10-12T14:43:17Z")
If an acquisition target cannot be found and no merger goes through at all, the entire capital may not be recovered.
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### Author:  [@Anssi2](https://forum.inderes.com/u/Anssi2)
#### Post date: [October 12, 2021, 2:44pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/62 "2021-10-12T14:44:29Z")
Why shouldn’t it? All expenses incurred before the merger come out of the sponsors’ pockets. (And this justifies the extra warrants they receive.)
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### Author:  [@Sisu1](https://forum.inderes.com/u/Sisu1)
#### Post date: [October 12, 2021, 3:04pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/63 "2021-10-12T15:04:05Z")
@Nortti1 is absolutely right that there’s a risk of not getting all capital back if a target isn’t found.
If no target is found, the company will be put into liquidation and dissolved.
Primarily, the company’s working capital is used for expenses, but if that isn’t enough to cover incurred costs—for example, if a merger had already been prepared and money spent, but it was canceled for some reason—then it’s possible to use funds deposited in the escrow account.
It’s tedious and boring legal text in the prospectus, but it’s always worth reading through the documents before making investment decisions.
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### Author:  [@GTonic](https://forum.inderes.com/u/GTonic)
#### Post date: [October 12, 2021, 4:26pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/65 "2021-10-12T16:26:46Z")
I don’t think it’s realistic to assume that acquisition targets wouldn’t be found. I believe this first Lifeline SPAC is a real opportunity to prove themselves, and they want it to succeed and create a replicable formula for their fund’s companies to list when there isn’t an industrial buyer.
My strong guess is that since valuations are high and Lifeline has many good candidates in its portfolio, either in whole or with a portion of the shares, I believe the company is already known.
I subscribed because of the arguments above and the strong team behind it.
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### Author:  [@Kunhalvallasaa](https://forum.inderes.com/u/Kunhalvallasaa)
#### Post date: [October 12, 2021, 4:41pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/66 "2021-10-12T16:41:13Z")
I also made a few random, “gnome-like” investments.
This type of thing requires a bit of long-term patience, but we’ll see.
A skilled team is in place, but it remains to be seen; I also believe they have already selected acquisition targets.
Surely one can dare to participate in something like this when public pension funds are involved?
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### Author:  [@NoRiskNoFun](https://forum.inderes.com/u/NoRiskNoFun)
#### Post date: [October 13, 2021, 3:07pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/67 "2021-10-13T15:07:30Z")
> **[Lifeline SPAC I Oyj:n instituutioanti on ylimerkitty ja merkintäaika on...](https://www.lifeline-spac1.com/fi/2021/10/13/lifeline-spac-i-oyjn-instituutioanti-on-ylimerkitty-ja-merkintaaika-on-keskeytetty-kaupankaynnin-nasdaq-helsingin-saannellyn-markkinan-spac-segmentilla-odotetaan-alkavan-15-10-2021/)**
>
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### Author:  [@Tuohenpolttaja](https://forum.inderes.com/u/Tuohenpolttaja)
#### Post date: [October 13, 2021, 8:04pm UTC](https://forum.inderes.com/t/lifeline-spac-i-yhdistyi-canatuun/23318/68 "2021-10-13T20:04:08Z")
In principle, the liquidation process for this company should be relatively straightforward, as the balance sheet should not contain any assets other than cash. Of course, lawyers could probably spend a year on that and charge an estimated million, but it’s hard to see any significant risks associated with this. Loans are unlikely to be taken out before the deal is certain, at least.
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