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They will structure the deal such that the value of those shares is targeted to be about $10. Seems like they don't always achiever that. One of Chamath's DNA S
by pbreit 4y ago
They will structure the deal such that the value of those shares is targeted to be about $10. Seems like they don't always achiever that. One of Chamath's DNA SPACs only started trading recently and is way down: https://www.google.com/search?q=NASDAQ%3A+AKLI https://www.google.com/search?q=NASDAQ%3A+AKLI
- drexlspivey 4y agoBefore the merger goes through the stock price has a floor of $10. Typically the SPAC will IPO and start looking for a deal, this takes around 1-1.5 year. During that time the stock will be trading at around $10. When a deal is announced it typically takes 3-6 months for the merger to complete. The floor is still in place during that time. After the merger goes through the floor disappears and it starts trading like a normal stock.