CCV - Deadline SPAC that just bombed, huge arb opportunity

Research & Analysis SPACs
1

This thing has been trading at around 9.85, and for whatever reason it knifed to 9.78 even though there’s been no news of any potential DA and there hasn’t been a substantial short term interest rate move to justify that either. NAV is about $10.005

The deadline for this SPAC is June 7th, which is a massive 2% arbitrage for less than 30 days. This also has options on it so if you’re lucky there might be a reddit pump like BREZ and BWAC where you can get out over NAV if they do an extension vote.

The risk here is that they announce a (bad) DA before then, which gives them more time to complete the deal which means you have to wait longer to redeem. But I haven’t seen anything regarding that.

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2

Just to be clear, the play with this is to buy shares, if you buy 10Cs for a nickel you will lose a nickel.

3

Interesting. Will look into it. The 7.5c for June are going for 2.35 so there is a potential 6% arb up to 2.50 if this is trading at 10.00-10.01 by the deadline.

4

Can you cite the document that provides for the deadline to be in June the SPAC was formed in December 2020, and as is the case with most SPACs, it’s registration statement provides that it has until 2 years later (December 2022) to enter into a business combination. I am not seeing the June deadline or redemption option anywhere.

5

I saw the deadline on the spachero.com calendar, I did not read the prospectus to confirm it.

They could have bad information, but they generally are accurate for this kind of stuff. If you read the section of their prospectus (make sure you look at the prospectus, not the S-1, sometimes the S-1 information changes, the prospectus is the final version) that says they have 2 years, then that’s probably accurate and spachero’s wrong about this.

6

Didn’t find the prospectus, if there is one, but the most recent 10-K (which is most recent public filing) makes it pretty clear that the deadline is December 18, 2022. Curious where SPAChero is getting their info but it’s likely wrong from what I’m seeing

7

Ok, I double checked, the 424B4 (prospectus) states 18 months

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That’s in the section that compares the terms of the CCV offering to a Rule 419 offering. 18 months is what is standard for a Rule 419 offering.

If you look at page 2 of that prospectus it says the “completion window” is 24 months after the offering.

9

Ah shit, maybe whoever posted the info at spachero made the same mistake I just did.

Double checking again, it is indeed 24 months

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Well, I’ll still hold this through the false deadline date posted on spachero, as redditers also use that as a resource and might play it based on the bad information.

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