SPAC & IPO Ideas

Sanrith Descartes

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I need to really digest all of this. It appears that Ackman couldnt find a target big enough for all the cash he raised. and the "difficulties" was Vivendi not wanting to sell more than 10%?

 

Jysin

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I have to admit, I think I am going to hold this long term. (6k shares in retirement account only, so I have the time horizon)

SPARC deal of $10B and no opportunity cost? It is basically a $20 call option for zero premium cost. You have right to it after target is already disclosed. This huge pot of cash can afford a unicorn in later years like Starlink etc.

PSTH continues seeking a target with remaining funds (still larger capital than any other current spac)

UMG shares at pre-IPO pricing. IPO in Q3 can really run and pay off in itself, leaving all the other perks of PSTH / SPARC as freebies.

Certainly not as sexy as a unicorn instant gratification, but long term, this seems like a hold for me. Options players certainly get fucked.
 
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Fogel

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I have to admit, I think I am going to hold this long term. (6k shares in retirement account only, so I have the time horizon)

SPARC deal of $10B and no opportunity cost? It is basically a $20 call option for zero premium cost. You have right to it after target is already disclosed. This huge pot of cash can afford a unicorn in later years like Starlink etc.

PSTH continues seeking a target with remaining funds (still larger capital than any other current spac)

UMG shares at pre-IPO pricing. IPO in Q3 can really run and pay off in itself, leaving all the other perks of PSTH / SPARC as freebies.

Certainly not as sexy as a unicorn instant gratification, but long term, this seems like a hold for me. Options players certainly get fucked.

Yep, the one time I'm glad I have shares instead of options for sure. I'll hold my shares as well. I'm curious about the SPARC and what happens with the IPO. One thing I'm curious about, is how will the timeline for being able to buy into the SPARC marry up with the IPO, aka even if the IPO pops, if we can't sell right away there's a chance it dips back down.
 

Sanrith Descartes

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Fuck man, I thought the deal I was putting together in real life to acquire a couple of companies was complicated. Ackman just schooled me on what complicated really looks like. My #1 concern is that this is going to so confuse the rank and file retail investor that they just sell because they cant calculate the total value of their shares. FML, its Friday and I wanted a nice simple day.
 
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Fogel

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Fuck man, I thought the deal I was putting together in real life to acquire a couple of companies was complicated. Ackman just schooled me on what complicated really looks like. My #1 concern is that this is going to so confuse the rank and file retail investor that they just sell because they cant calculate the total value of their shares. FML, its Friday and I wanted a nice simple day.

On the plus side, with so much passive revenue, it'll be very attractive for the large funds which should gobble all the retail selling back up.
 

Sanrith Descartes

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On the plus side, with so much passive revenue, it'll be very attractive for the large funds which should gobble all the retail selling back up.
Yeah. The SPARC thing needs thought since it will require cash at the time it deals to purchase the exercisable shares. Also I need to re-read the warrant thing again and see what the actual value of my warrants are worth. I imagine this is going to complicate things and might create an arbitrage in warrants with people not having any idea what they are worth.
 

Jysin

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Yeah. The SPARC thing needs thought since it will require cash at the time it deals to purchase the exercisable shares. Also I need to re-read the warrant thing again and see what the actual value of my warrants are worth. I imagine this is going to complicate things and might create an arbitrage in warrants with people not having any idea what they are worth.
Yes, you need capital down the line for SPARC, but I view this as a huge win / win.

#1 No opportunity cost. You essentially have a $20 call option for nothing, regardless of the length of time needed.
#2 You only exercise when the DA is announced. You can have a blinding winner for $20 (known target) or you just simply pass on it and lose nothing.
 
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Blazin

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I'm out PSTH it's just boring to me and not something I have any interest in. I think it drops from here in the near term at least.



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Sanrith Descartes

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Yes, you need capital down the line for SPARC, but I view this as a huge win / win.

#1 No opportunity cost. You essentially have a $20 call option for nothing, regardless of the length of time needed.
#2 You only exercise when the DA is announced. You can have a blinding winner for $20 (known target) or you just simply pass on it and lose nothing.
No doubt that has value. I am just trying to quantify it.
 

Sanrith Descartes

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So check my math on this. Assume you own 999 shares of PSTH today.
You will get 999 shares of UMG valued at $14.75 /share
You will get 999 shares of PSTH (remainco) valued at $5.25 /share
You will get 999 $20 Leap options on SPARC.

Warrants.
I have read this 3 times and still am not sure wtf happens to the warrants. Blazin Blazin Jysin Jysin ?

1622813352234.png
 

Jysin

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Big ? on warrants too. Still supposed to get your 2/9 warrant on the completion, but ...

Maybe we get clarification if / when Bill gets on CNBC / Bloomberg.
 

Sanrith Descartes

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Big ? on warrants too. Still supposed to get your 2/9 warrant on the completion, but ...

Maybe we get clarification if / when Bill gets on CNBC / Bloomberg.
I "think" the warrants are going to be a cashless redemption for the PSTH shares which then act as PSTH shares outlined above. The question is the ratio of the conversion.
 

Sanrith Descartes

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Now trading pre-listing price of <$21.50
The value is there at $20 since you are getting 1:1 UMG shares at $14.75 and PSTH at $5.25. The other unmentioned fucked up thing is anyone holding PSTH in a retirement account has issues being able to exercise the future SPARC since you can just add 20 or 30k to an IRA to buy those shares.