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I don't really understand SPACs. Is there a good article explaining what they do and why you take them instead of going public directly. And what happens to tho

by kharak 5y ago

I don't really understand SPACs. Is there a good article explaining what they do and why you take them instead of going public directly. And what happens to those SPAC shares now if you bought some?

fsn4dN69ey 5y ago
Plenty of material on SPACs online, but per your question, the shares of the spac (SRNG) convert to the target (DNA). If you had units (SRNGU), you also got 1 share (DNA) + 1/5 warrant (DNA.W) per unit.
- g10r 5y ago
  Was nice to have the ability to buy into SRNG early. This is more or less restricted to most through a traditional IPO.
  - fsn4dN69ey 5y ago
    Yeah, absolutely. Especially when in comparison with current IPOs. Their listings end up being "take the publicly stated IPO price, pick a random multiple between 1x and 3x, and that's what we'll actually drop onto the market at some unknown period of time during the day". Of course some people aren't happy about the SPAC structure - how else would they make their money?
- deleted 5y ago
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