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<blockquote data-quote="fortysix" data-source="post: 1432920" data-attributes="member: 2970"><p>Anyone looking at SPACs? For those not in the know, a SPAC is a blank check company - essentially a shell company that puts together a management team and thesis based on a specific industry, then raises $ in an IPO, and then looks for a smaller private company to acquire using the proceeds raised from the IPO. Once the target is locked down, they then go out to the market for another investment (called a PIPE) to raise money to run the business. Its in the interests of the small company to get acquired by a SPAC since it allows them to go public quickly without going through the standard time consumming IPO process and also retain the majority if its management in the post merger company. </p><p></p><p>If a SPAC isnt able to find a target company during some agreed to period (16-24 mo, typically), then it gets dissolved and the IPO proceeds get distributed to its stockholders (so the downside is limited pre-merger).</p><p></p><p>There have been a lot of great ones in this space (i.e. Draftkings). One im watching closely is Ivanhoe Capital Acquisition Corp. I like this one because one of the key managers is Robert Friedland (mining billionaire) and the rest of the team is also very connected in mining/resources. </p><p>The SPAC is going out to find a company to acquire in "industries related to the paradigm shift away from fossil fuels towards the electrification of industry and society". See its prospectus for more info. Everything ive seen so far points to acquiring a company in the battery space, maybe a play ancillary to EVs.</p><p></p><p>I am loving it because right now there is retail investor money looking to speculate in this space, but really the only options with high upside potential are various penny stocks or chinese companies. Here, we have the SPAC run by super connected people in this space do its own diligence for us and downside is limited since its trading close to NAV (until it finds a target and merges).</p><p></p><p>Anyone else digging into these?</p><p></p><p>Here is a write up from bloomberg: <a href="https://www.bloomberg.com/quote/IVAN/U:US">https://www.bloomberg.com/quote/IVAN/U:US</a></p><p></p><p>Its prospectus @ SEC filing:</p><p>[URL unfurl="true"]https://sec.report/Document/0001104659-20-137425/[/URL]</p></blockquote><p></p>
[QUOTE="fortysix, post: 1432920, member: 2970"] Anyone looking at SPACs? For those not in the know, a SPAC is a blank check company - essentially a shell company that puts together a management team and thesis based on a specific industry, then raises $ in an IPO, and then looks for a smaller private company to acquire using the proceeds raised from the IPO. Once the target is locked down, they then go out to the market for another investment (called a PIPE) to raise money to run the business. Its in the interests of the small company to get acquired by a SPAC since it allows them to go public quickly without going through the standard time consumming IPO process and also retain the majority if its management in the post merger company. If a SPAC isnt able to find a target company during some agreed to period (16-24 mo, typically), then it gets dissolved and the IPO proceeds get distributed to its stockholders (so the downside is limited pre-merger). There have been a lot of great ones in this space (i.e. Draftkings). One im watching closely is Ivanhoe Capital Acquisition Corp. I like this one because one of the key managers is Robert Friedland (mining billionaire) and the rest of the team is also very connected in mining/resources. The SPAC is going out to find a company to acquire in "industries related to the paradigm shift away from fossil fuels towards the electrification of industry and society". See its prospectus for more info. Everything ive seen so far points to acquiring a company in the battery space, maybe a play ancillary to EVs. I am loving it because right now there is retail investor money looking to speculate in this space, but really the only options with high upside potential are various penny stocks or chinese companies. Here, we have the SPAC run by super connected people in this space do its own diligence for us and downside is limited since its trading close to NAV (until it finds a target and merges). Anyone else digging into these? Here is a write up from bloomberg: [URL]https://www.bloomberg.com/quote/IVAN/U:US[/URL] Its prospectus @ SEC filing: [URL unfurl="true"]https://sec.report/Document/0001104659-20-137425/[/URL] [/QUOTE]
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