I've seen a few of these deSPACs. I guess the challenge is - where's the upside? Net cash of $2.33 versus share price of $2.0. You can make 15% on a gross basis, but you have to deal with the interim cash burn and any costs associated with the liquidation. They are burning roughly $0.30 per 12 month period, so the upside goes away pretty quickly. Feels like you need a much bigger discount.
I've seen a few of these deSPACs. I guess the challenge is - where's the upside? Net cash of $2.33 versus share price of $2.0. You can make 15% on a gross basis, but you have to deal with the interim cash burn and any costs associated with the liquidation. They are burning roughly $0.30 per 12 month period, so the upside goes away pretty quickly. Feels like you need a much bigger discount.
I realize you did proactively highlight this pushback too, but I think the certainty of the cashburn overwhelms any potential upside from Inv+AR+IP monetization.
I think I would want the business to have at least some prospects for success whereas XL Fleet appears to have almost none and has better capitalized competitors seemingly doing the exact same thing (eg Hyliion).
I've seen a few of these deSPACs. I guess the challenge is - where's the upside? Net cash of $2.33 versus share price of $2.0. You can make 15% on a gross basis, but you have to deal with the interim cash burn and any costs associated with the liquidation. They are burning roughly $0.30 per 12 month period, so the upside goes away pretty quickly. Feels like you need a much bigger discount.
I realize you did proactively highlight this pushback too, but I think the certainty of the cashburn overwhelms any potential upside from Inv+AR+IP monetization.
I think I would want the business to have at least some prospects for success whereas XL Fleet appears to have almost none and has better capitalized competitors seemingly doing the exact same thing (eg Hyliion).