SPAC Merger process

đź“Š Investing
1

Hi,

I have been studying SPACs for a while now and would love to know how the merger process actualy works on this platform. Is there anyone who already went through the whole proces on Trading212?
Questions are:

  1. Did you get voting rights?
  2. How do warrants work on Trading212? Did you get a chance to claim them?
  3. How many shares of the new company did you get? (ratio)

I went through older posts, but did not find answers…
Thanks

2
  1. No
  2. No warrants on T212
  3. 1:1 as expected
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3

Are the warrants converted into cash? Or exercised? What happens?

4

T212 will only list the Common Shares, so we have to wait until the SPAC Unit is split (52 days from listing roughly). So there’s no warrants attached to your holdings.

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5

Does that mean I am “losing” money?

6

In short; no. However not fully sure of your question?

UNIT (Not Available) = Common Share + Warrant
Common Share (Available) = Common Share
Warrant (Not Available) = Warrant

After the 52 day process, all UNITS will split into their relative trading positions. With other brokers you can trade all three of the options above, with T212 however you can’t.

I’m sure there’s someone else who might be able to explain it better, but hope this helps slightly? :grin:

7

I never invested in SPACs, so not familiar at all.

So essentially, when I buy a SPAC thought Trading212, I am buying the common shares, hence once the merge is completed, will be converted into the shares. Right? And who bought the units (not available in Trading212), will receive also the warrants. Did I get it right?

8

You got that part right… as you are already buying shares of SPACs. If merger is confirmed they will reverse merge with agreed private company.

Actually no one, it was never up for sale on Trading212.

I will emphasize reading it again

When SPAC is first listed it’s in a “Unit” which consists of 1 common share + 1/3 of a warrant exercisable. (Not available in T212)

After approx 52days later the SPAC “Unit” split up.
Making room for

  1. Common share
  2. SPAC unit
  3. Warrants

Ex SPAC = ABC
at start SPAC list as ABC.U or ABC/U
52 days later
We have

  1. ABC (Common Stock)
  2. ABC.WS or ABC/WS
  3. ABC.U or ABC/U

T212 will only offer Common stock…

2 Likes
9

All clear, thank you.

10

I don’t get it. So I don’t get the 1/3 warrant when I use buying with trading212?’

Is this till after a full year the case?