Same play that BREZ is going through right now, except this one is still trading at NAV. I just got in for a little bit of this.
Not much open interest on BWAC right now, but that can obviously change once it gets closer to the vote.
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When is the extension vote? What is NAV? Do they have a target?
Let’s hear some deets.
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NAV is 10.30, will be increaed to 10.34 - 10.40 depending on redemptions
The deadline is on 5/17, the vote is on 5/12
I do see that the options volume is picking up already, it’s currently still trading at NAV.
Seems as though reddit is begging to catch onto this. Might present some potential as a swing or scalp.
When is the last day to redeem? This has been trading at or above 10.30 for a few days, with a big volume day on May 5th. As we saw with BREZ that could indicate mediocre redemption numbers.
Copying what I just posted on Reddit:
A couple issues here:
Massive volume on May 5th, especially when share price was over NAV. It looks like arbs might have sold millions of shares whenever this popped over $10.30-$10.31. Same deal with BREZ on a few specific trading days.
Isn’t it the case that the sponsor addition to the trust account takes place only after shareholders have voted on the extension amendment or chosen to redeem? The sponsor isn’t incentivized to try to get arbs to redeem. They’re throwing more money into the trust to prevent redemptions, right? The arbs who bought in at $10.28-$10.30 will hold their shares, instead of redeeming, hoping they can sell at $10.37+ a few days or weeks after the vote when NAV is higher.
Would love for this to be a play, but I’m not seeing how this ends up with big redemptions.
I only brought this up because idiot redditers think a deadline SPAC w/ options is a play and there was a high potential people would pump it, and if you got into it while it was still at NAV you’re taking very little risk for the potential of a pop.
Seems like it did catch their attention and there was a bit of a pop today. The specifics (redemption deadline, etc) don’t really matter now that it got reddiot attention. The only relevant date was the vote date as these types of pumps usually occur around that time.
There’s no squeeze that’s going to happen, I’m hoping to make like 30 - 40 cents / share here off the reddiots who’ll end up w/ the bag.
Yeah, that’s what it’s looking like. Glad I got 10c fills at 0.35 a few days ago but will be selling on the FOMO pop and not waiting for redemption numbers.
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I dumped this shit for a few cents profit. I don’t really have time to monitor this w/ everything else crashing around me.
Seems like this play’s dead, yesterday was probably the peak on this.
I would avoid this now as it probably dumps to 10.30 in a few days as reddit loses interest.
BWAC released their 10-Q today, and it seems as though somewhere around 6 million shares were redeemed on the 12th.
“In connection with the extension amendment, stockholders holding 5,586,910 shares of the Company’s redeemable common stock exercised their right to redeem such shares”
I’m no genius at this, but that seems well below the rumored “90%” redemption rate that Reddit was hoping for (maybe?) As far as I can tell, theres no meme/ape buzz around this yet, because who wants to dig through sec filings?
Full report linked below
This is the likely result whenever a sponsor offers an anti-redemption sweetener like they did.
The crucial piece that the original Reddit poster didn’t understand is that the addition to the trust would take place only after the redemption deadline. Expecting that to result in high redemptions is like expecting the share price of a dividend stock to pump after the record date for a dividend. That’s definitely not how it works.
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