I’ve written extensively on all of the shenanigans going on with SPACs (most recently commenting on the MUDS / TOPPS deal falling apart and how SPAC sponsor don’t give a fudge about their reputation), but just when I think I’ve seen it all a SPAC will come out with some weird, new angle that leaves me with more questions than answers. And this month, I saw perhaps the weirdest announcement and SPAC stock response yet.
Can anyone with industry experience confirm or deny the 2.7 million float theory that is going around? The way i read the proxy float is more like 100 million as only ~55% of the deep green shares are locked
A significant portion of SOAC’s total outstanding shares are restricted from immediate resale but may be sold into the market in the near future. This could cause the market price of the TMC Common Shares to drop significantly, even if TMC’s business is doing well.
Sales of a substantial number of TMC Common Shares in the public market could occur at any time. These sales, or the perception in the market that the holders of a large number of shares intend to sell shares, could reduce the market price of the TMC Common Shares. Upon completion of the Business Combination, the initial shareholders will own approximately 2.3% of the outstanding TMC Common Shares, assuming no public shares are redeemed in connection with the Business Combination or approximately 2.5% of the outstanding TMC Common Shares assuming that all public shares are redeemed in connection with the Business Combination. In addition, certain Existing DeepGreen Securityholders that will be party to the Amended and Restated Registration Rights Agreement will own TMC Common Shares subject to lock-up restrictions representing approximately 49.7% of the outstanding TMC Common Shares, assuming no public shares are redeemed in connection with the Business Combination or approximately 55.4% of the outstanding TMC Common Shares assuming that all public shares are redeemed in connection with the Business Combination. While such Existing DeepGreen Security Holders and the initial shareholders will agree, and, in the case of the initial shareholders, will continue to be subject, to certain restrictions regarding the transfer of the TMC Common Shares, these shares may be sold after the expiration of the applicable lock-up restrictions. TMC may file one or more registration statements prior to or shortly after the Closing to provide for the resale of such shares from time to time. As restrictions on resale end and the registration statements are available for use, the market price of the TMC Common Shares could decline if the holders of currently restricted shares sell them or are perceived by the market as intending to sell them.
Did you see what happened with the PIPE on the RICE deal? One of the participants couldn't come up with their $25 million allocation, which was worth $45 million at market prices
price action on deSPACs usually fades after the initial pop right (and breaks $10)? decent short opportunity, sized appropriately?
Can anyone with industry experience confirm or deny the 2.7 million float theory that is going around? The way i read the proxy float is more like 100 million as only ~55% of the deep green shares are locked
From here: https://www.sec.gov/Archives/edgar/data/0001798562/000121390021040480/fs42021a5_sustainableopp.htm
A significant portion of SOAC’s total outstanding shares are restricted from immediate resale but may be sold into the market in the near future. This could cause the market price of the TMC Common Shares to drop significantly, even if TMC’s business is doing well.
Sales of a substantial number of TMC Common Shares in the public market could occur at any time. These sales, or the perception in the market that the holders of a large number of shares intend to sell shares, could reduce the market price of the TMC Common Shares. Upon completion of the Business Combination, the initial shareholders will own approximately 2.3% of the outstanding TMC Common Shares, assuming no public shares are redeemed in connection with the Business Combination or approximately 2.5% of the outstanding TMC Common Shares assuming that all public shares are redeemed in connection with the Business Combination. In addition, certain Existing DeepGreen Securityholders that will be party to the Amended and Restated Registration Rights Agreement will own TMC Common Shares subject to lock-up restrictions representing approximately 49.7% of the outstanding TMC Common Shares, assuming no public shares are redeemed in connection with the Business Combination or approximately 55.4% of the outstanding TMC Common Shares assuming that all public shares are redeemed in connection with the Business Combination. While such Existing DeepGreen Security Holders and the initial shareholders will agree, and, in the case of the initial shareholders, will continue to be subject, to certain restrictions regarding the transfer of the TMC Common Shares, these shares may be sold after the expiration of the applicable lock-up restrictions. TMC may file one or more registration statements prior to or shortly after the Closing to provide for the resale of such shares from time to time. As restrictions on resale end and the registration statements are available for use, the market price of the TMC Common Shares could decline if the holders of currently restricted shares sell them or are perceived by the market as intending to sell them.
Did you see what happened with the PIPE on the RICE deal? One of the participants couldn't come up with their $25 million allocation, which was worth $45 million at market prices