Maverick 12:43 PM - Jun 21 2020

GRAF - Graf Industrial Corp

Potentially merging with PureCycle Technologies.

Currently 13.37

https://www.grafacq.com/overview/default.aspx
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Maverick - 3 years ago
Target confirmed as Velodyne today by GRAF.  đźš—

Stock went up 50% and warrants went to $4.00.  That's a hell of a move from my 1.50 average (though I sold at 2.50)

Kudos to anybody that rode this one! đź’°

https://www.prnewswire.com/news-releases/velodyne-lidar-and-graf-industrial-corp-announce-business-combination-to-form-leading-publicly-traded-lidar-technology-company-301087621.html
Maverick - 3 years ago
Sold at 2.50 (from 1.50) when it spiked on Friday.  I couldn't figure out what happened, so I took it off the table.  

i.redd.it/lcnd354zxc751.jpg
Maverick - 3 years ago
The warrants moved up a little to close today at 1.39.  They were on a trip to hell at 1.15 earlier in the day.
Maverick - 3 years ago
This one is still getting beat up (but most SPACs are, as well).

Warrants are at 1.35 again.

I've seen some interesting dialog between shareholders and the CEO (posted on ST).  Need to give it a closer look and see if it's all BS or they're sitting on a rocket.  Hard to tell....
Maverick - 3 years ago
GRAF - $12.48
GRAF+ (warrants)  $1.35
  • Initially raised ~$250M @ 10, issued ~25M shares
  • They announced on April 8 they were in negotiations with Target
  • At the April 16 shareholder’s meeting, 13M of those shares requested redemption which reduced the trust account to $117M (and reduced the O/S by 13M).  This is not a good sign, it’s quite a significant vote towards lack of confidence in this deal getting done.
  • The upside is - assuming nothing leaked - that PureCycle as that target wasn’t announced until April 23 (after the shareholder vote) in an 8-K.
  • There’s been no press releases since April 8.
  • If my math is right, that should leave 30-13 = 17M shares out there now?
  • Risk: GRAF has not announced a definitive agreement.  It’s only said “business combination negotiations” — it’s a bit odd to go this long without a definitive agreement
  • If they do announce an actual definitive (they have until July 31) this thing will roar
  • If they don’t - warrants are toast and rest of shares will redeem - as half already lost confidence the money in trust is now half of what it was
  • I consider this quite high risk on the warrants, minimal risk on the equity.  Upside is very high, if they get that definitive.
Maverick - 3 years ago
I am in at a little over 1.50 on the warrants.

SPAC Central

Created By: Maverick
Created: Jun 21, 2020
Total Followers: 7
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SPACs ("Special Purpose Acquisition Companies") are blank check companies that have cash in them and are seeing a target to acquire.  These can be fun because it's a 🕵️‍♀️ game of who they're going to acquire.  It can be profitable if the target company ends up being something in a hot space.  

Make sure to do your DD on management behind the SPAC, cash position, and target sector.
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