Thanks a lot for your insights. Great article! Just two things which I am a little bit puzzled about:
Regarding the suspected sell-off before the voting date of Celularity and GX: Don´t all investor which hold the shares on the record date are able to vote for redemption until the voting date, so July 14th? So there would not be any pres…
Thanks a lot for your insights. Great article! Just two things which I am a little bit puzzled about:
Regarding the suspected sell-off before the voting date of Celularity and GX: Don´t all investor which hold the shares on the record date are able to vote for redemption until the voting date, so July 14th? So there would not be any pressure to sell before, but rather directly after that.
And secondly, regarding the incentives for the target company when redemptions are high: From my perspective among SPAC companies are a lot which are not able to get funding elsewhere. Although high redemptions may improve their negotiation power, I assume that most of them would even go with any funding instead of letting the deal slip away. At the same time, they gain access to the public market, where you can issue new shares afterwards. The question is of course if you are able to raise any more money afterwards when you are in a negative signal vicious circle being a Zombie SPAC from the beginning.
Thanks a lot for your insights. Great article! Just two things which I am a little bit puzzled about:
Regarding the suspected sell-off before the voting date of Celularity and GX: Don´t all investor which hold the shares on the record date are able to vote for redemption until the voting date, so July 14th? So there would not be any pressure to sell before, but rather directly after that.
And secondly, regarding the incentives for the target company when redemptions are high: From my perspective among SPAC companies are a lot which are not able to get funding elsewhere. Although high redemptions may improve their negotiation power, I assume that most of them would even go with any funding instead of letting the deal slip away. At the same time, they gain access to the public market, where you can issue new shares afterwards. The question is of course if you are able to raise any more money afterwards when you are in a negative signal vicious circle being a Zombie SPAC from the beginning.