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Spac scams are back! It's all about getting liquidity and leaving someone else holding the bag.
Yeah… they are coming back apparently. Tempting to go get the title and cash and maybe make a little extra with the equity.
Rising Star
If they won't show you their financials to show they have adequate funding run like the wind.
They have been filing as a public company for at least a year now (Qs and K). Sounds like they are working on some debt agreements as well to help with funding on top of the SPAC
The history of SPACs should give you pause - most of the recent deals have been bad to terrible with some pretty notable exceptions (DraftKings fro example). Do they have an actual SPAC partner with a deal agreed and signed? If they don’t, just sounds like another private company that says they might IPO.
If they do have a deal, what is the SPAC trading at? Anything under $9.80 or so likely means there’s material risk of investor flight.
SPACs are pretty rare at this point; they generally feed off low interest rates and yields (there was a huge run of them in 2010-14 or so and then a massive boom around COVID and the year or two following). Could mean they have higher quality targets at this point (not saying much as the 21/22 SPAC targets were by and large dogshit).
Definitely anticipating a correction after going public. But everything seems to be different from the company I worked at that SPAC (performance, valuation, etc.). Hard to get comfortable jumping on the SPAC train again.