If we mirror this at all to earlier mergers this year, and for example, Avepoint could be a good comparison, one might guess that it would go to around 5-6 dollars at least to pick up some momentum. An interesting company, indeed, but with such tight valuation and the current market, I would definitely not hold common shares through the merger. Well, let’s see if this could be bought at a good discount.
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An interesting change. The merger valuation is being lowered, and there’s a new $75M backstop agreement.
https://www.businesswire.com/news/home/20211130005604/en/
In practice, these agreements and convertible bonds have now secured enough capital for the merger to go through, regardless of SPAC fund redemptions.
pro forma enterprise valuation adjusted from $1.565 billion to $1.378 billion to reflect current market conditions and establish more attractive entry point to market
Edit: of course, there still needs to be enough “yes” votes 
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@kettunen If I may bother you a bit about SPACs… I noticed that Dragoneer Growth Opportunities Corp II is trading a little over $9 due to today’s 8% drop. What/how could one utilize arbitrage from this by voting against it, and how does voting actually work in practice? Based on a quick Google search, I just read about various paper materials being sent to investors.
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DGNS is trading at that price because the redemption opportunity has already passed. You don’t need to vote against to exercise your redemption right. I don’t know anyone who has exercised the redemption option from Finland, but I looked into it with Nordnet in the fall, and it should be possible. The cost is 150€, and it’s advisable to request redemption well in advance so they can process it; otherwise, the SPAC shares will convert into the target company’s shares.
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Furthermore, if you like the merger, it often takes domestic brokers days to get the stock back into trading. Stop-losses don’t help, nor can you sell if the price crashes after the merger. To quote a forum member, all you can do is sit there with your thumb up your ass as the price dives and you wait for Nordnet to get the company listed for trading
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Yeah, your blood pressure can rise a bit when a stock’s price swings +/-20% a day and the line is greyed out in Nordnet for the 5th day. That’s pretty much what happened when I held DM through its merger as an experiment.
I took the bull by the horns and bought a small batch of DMYQ for a rally play. I haven’t decided yet if I dare to hold through the merger precisely because that process can easily take a while.
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https://twitter.com/JulianKlymochko/status/1468275485477990401?t=CIXGHqfKeLUEs973zD9pPg&s=19
It certainly didn’t cause any strange movements in the stock price.
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Rumor has it, nothing confirmed yet, but if it happens, it would be pretty good.
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That’s not even a rumor. Anyone can post any blog article to SeekingAlpha. It’s not the first or second pump and dump SA blog post. SPACs are always full of wishful rumors that are based on nothing. I can’t recall a single such rumor that has come true. If my grandmother were listed on the stock exchange, there would be a greater than zero chance that she would merge with Northvolt.
https://twitter.com/EggPlatypus/status/1469359752522076161
https://twitter.com/EggPlatypus/status/1469359754069692421
https://twitter.com/EggPlatypus/status/1469359757609684992
https://twitter.com/EggPlatypus/status/1469359760591888384
https://twitter.com/EggPlatypus/status/1469359763909529601
https://twitter.com/EggPlatypus/status/1469359768015880194
https://twitter.com/EggPlatypus/status/1469359770033291265
https://twitter.com/EggPlatypus/status/1469359771295698946
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$DCRN Tritium wins supply agreement with Shell.
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I mentioned something like that a good year ago. I don’t think I was completely wrong, even though there’s been a significant rise in between.
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That New Year’s Eve was truly a wonderful time.
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When talking about SPACs, how long is a company considered a SPAC? Even in that index, the top spots are held by companies that have listed through a SPAC but are no longer actually SPACs.
In my opinion, SPACs still offer the best risk/reward ratio. You can buy a SPAC that is merging with an interesting company or invest based purely on a renowned sponsor. As long as the purchase price is affordable enough and the redemption option is still available, it’s difficult to lose significant amounts of money.
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I would be interested in Lifeline SPAC or Guggenheim/Polestar, for example. As a beginner, I just don’t really know how to assess the risks or downsides associated with them. Of course, it would also be good to know the upsides. Has anyone explained these in more detail somewhere? I have done some googling but haven’t found anything in-depth.
This was worth waiting for. From $ZNTE. It’s not badly valued compared to $LILM and $JOBY. The stock didn’t move much on the news. SPACs are dead unless Trump is involved 
https://finance.yahoo.com/news/embraer-air-mobility-unit-agrees-151052423.html
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Let’s update the statistics again based on AlphaRank statistics, even though general interest continues to decline.
More SPAC IPOs are constantly coming, of course, some DA announcements are also being made, and some are being delisted through mergers.
There are now 694 SPACs outstanding, up from just 276 one year ago. Of the 694 acquisition companies outstanding, 572 are searching for a deal. In addition, 269 would-be blank check companies have filed an S-1 to go public in the future.
Correspondingly, more arbitrage is available than before. This means that the valuation relative to NAV is lower than before, and thus the relatively risk-free return is better.
To increase investor interest, the terms of new SPAC IPOs have been improved, which is why there may be more warrants than before or the fund size is being increased. This improves potential arbitrage returns, as the NAV already rises higher.
The return on new SPAC units is potentially up to 7%, with the added option of a good target:
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No amazing gains, but no drops either. I missed out, even though I own warrants.
https://twitter.com/spachero2/status/1472889899485306881?t=9VShNfCMuH1ee4Sr-Pe6Bw&s=19
https://twitter.com/JulianKlymochko/status/1472927768971079680?t=Phg-vAcpVcsuEVQ-Mq5txA&s=19
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$DCRN merger vote on 12.1.2022. The price hasn’t seen any increase now, even with good news. I’m wondering if I should sell my stake and then buy back cheaper after the merger. Any other owners and thoughts?
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$DCRN merger 12.1.
Released Q4 results for 2021. Growth has been strong, but so is the valuation of the future stock.
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