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.
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