Why invest in SPAC

Versatile portfolio play - offering downside protection (100% of IPO funds in escrow in T-bills) and upside potential (deriving from the eventual business combination), plus derivative optionality through the free warrant. Effective at stabilising portfolios as – until the business combination – SPACs have a defensive risk profile and are uncorrelated from stock market performance. Nasdaq-listed SPACs have proven to be highly liquid, due to cash in escrow underlying the common, with both institutional investors (eg. SPAC-only funds) and market makers acting as block trade counterparties. The free warrant at IPO offers certain return when traded in market.

Alignment Of Interests

  • INVESTOR: Free-risk investment with at least 100% redemption and potential upside, plus optionality. Participation in IPO vs secondary market guarantees fixed price, free warrant and no commission.
  • SPONSOR: Immediate seizing of acquisition opportunity, cash in hand. Repeat SPAC sponsor teams profit from pipeline, thus shortening lead time to business combination.
  • TARGET: Easier and faster route to market listing vs traditional IPO or Private Equity takeover. Maximum capital structure flexibility.

    Versatile Investment Strategies

  • IPO:
    Receive unit: common @ usd 10 + free warrant, No commission, Free trading from day one.
  • SECONDARY MARKET:
    Trade unit, common, warrant. Market commissions and prices apply. Common price is stable. Warrant statistically grants return.
  • BUSINESS COMBINATION:
    Sell unit/common on market. Redeem common @ usd 10. Stay in Newco by holding unit, holding common or exercising warrant.

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* Transaction closed by IBS Holding Corporation d.b.a. I-Bankers Securities, Inc. (member of FINRA and SIPC). The headquarters address for I-Bankers Securities is: 535 5th Avenue 4th Flr., New York, NY 10017.

I-Bankers Direct, LLC (“IBD”) operates www.ibankersdirect.com, and all securities offered on this website are offered through IBD. IBD is a registered broker-dealer and member FINRA / SIPC. By accessing this website, you agree to be bound by its Terms of Use and Privacy Policy. This website is only suitable, intended and available for accredited investors who are registered with this website and familiar with and willing to accept the high risk associated with private placement investments. Securities sold through private placements are not publicly traded and are intended for investors who do not require a liquid investment. Private placement investment opportunities available through this site are not subject to the same level of regulatory scrutiny as publically-traded companies, and, consequently, information upon which to make an informed investment decision may not be readily available. There can be no assurance that the valuation of the company issuing the securities is accurate or in agreement with industry or market valuations. In addition, investors may receive restricted stock which may be subject to holding period requirements. Companies that seek private placement investments are typically in early stages of development and have not yet been fully tested in the public marketplace. Private placement investments require high risk tolerance, low liquidity concerns, and long-term commitments, and investors must be able to afford to lose their entire investment.