Special purpose acquisition companies (“SPACs”) are becoming commonplace among the arbitrage community and the securities are generally developmental stage blank-cheque entities which do not have any specific business apart from the sole intention to acquire a company with the funds raised.
We monitor SPAC arbitrage investment opportunities that mainly involve acquiring the shares of a SPAC at or below its current net asset value. Profits can be achieved (i) upon the announcement of a business combination (a “deSPAC”), if the investor exits the position at a premium to NAV; or (ii) upon redeeming the SPAC at the deal vote or through liquidation, both which would be at the then NAV (the IPO price plus accrued interest).
If you are a qualified investor and would like to know more on our expertise in SPAC analysis, please get in touch.