A SPAC raises capital through an initial public offering (IPO) for the purpose of acquiring an existing operating company. Subsequently, an operating company can merge with (or be acquired by) the publicly traded SPAC and become a listed company in lieu of executing its own IPO.
Blank check companies give investors the right to redeem their shares for $10 plus interest, either:
- prior to the acquisition, or
- if a SPAC fails to complete an acquisition, typically within two years.
The recent pullback in SPAC stocks has opened a bargain opportunity for investors seeking discount entry points. SPAC IPO stocks usually list for $10 per share. Now, you can find many SPACs under $10. Buying SPAC stocks under $10 can be a good deal. Let's see why using the example of shares GIK
Lightning eMotors is an automotive research and manufacturing company that develops zero-emission, all-electric powertrains. The company provides fleet electrification services, equipping truck platforms with high-tech electric powertrains, plus everything needed to charge them.
Lightning eMotors is a privately held company that raised a total of $ 97.1 million in 6 rounds. The last funding was received on March 1, 2020 from the Series C. BP Ventures is the largest investor, increasing its stake in the latest round.
On the website of the Lightning eMotors company you can find out more about the leaders, history, services, and in the news feed you can see how the company's services are being requested more and more often.
It is now possible to get a share in this company through the tools of SPAC (Special-purpose acquisition company - which I wrote about above). I'm almost sure that many who are just discovering this tool for themselves will like such investments. More information about SPAC can be found on the website or by contacting us in the telegram channel.
So, closer to my idea. GigCapital3 Inc (NYSE: GIK ) has already signed a merger agreement with Lightning eMotors that is due to take place shortly. According to our estimates, the company at the merger was valued cheaper than its competitors in the market. There is also the effect that until the deal goes through and Lightning eMotors shares do not start trading on the market, many Western investment houses cannot recommend these securities for purchase. According to my (modest) estimate, the Company's market capitalization will amount to $ 1.1 billion this year.
Thus, thanks to SPAC (vehicle) tools, anyone can invest in non-public companies. And what is most remarkable now is the price is $8 below the trust security. Trust deposit, which is prescribed (usually) in the SPAC share issue prospectus at the level of $10 for each share. There is a possibility that the shares will be up 23% to the level of $10 or, if my positive scenario comes true, then the shares will rise by 70% to the level of 14 already this year.
Good luck everyone)
Lightning eMotors and GigCapital3 business combination is now available at ZEV ticket at NYSE. ZEV means zero-emission-vehicle.
Take a look at my updated analysis
1) Many states are moving/will be moving to "retro-fit" existing fleets, these guys are positioned to provide the fastest conversion.
2) They have a pipeline of sales, including: DHL, Amazon, XPO Logistics and quite a few others.
3) GIK is gearing up to accommodate for the influx of production - they are one of the only companies I know of with the capabilities currently to scale for these builds.
4) These guys have actual orders and vehicles on the road, not just prototypes and demo units
3) Estimates for growth are obviously all over the map in terms of PP, I'm conservatively betting GIK stock goes to $30 by August, $50 by end of year.
Note that although the merger has been approved, the change to the new symbol hasn't taken place for whatever reason, that's a little concerning.