Spelling error on my part. $10p for July.
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Polestar Wins Car Design and Auto Trader Awards on the Back of Record Order Demand
- Car Design Awards recognises Polestar with prestigious Best Brand Design Language for 2022
- Polestar 2 receives three awards from Auto Trader in UK, including New Car of the Year 2022
- Record order intake sees over 32,000 orders and 290% increase year to date versus 2021
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Nice comprehensive summary of all the bogus EV despacs https://twitter.com/forwardcap/status/1536398577861263361?s=21&t=Ajix_Zr4Lv5fR3jPIqjvow
GGPI isn’t mentioned here but this was the most relevant thread to stick it in.
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The IV on the 10p for July is getting pretty crazy. I bought in for 1.8 at open and shortly after they peaked at 2.50. I’m going to cut my puts on Thursday if they get to around 3.00.
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What was this drop we saw today? Was the NAV being removed? I read something about shares being redeemed hence the drop today.
I believe you have 2 trading days before you can redeem for NAV before the vote on the 22nd. Monday markets are closed due to Juneteenth so that leaves today for the floor to be removed.
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You have to be the shareholder of record on Jun 17 to redeem, if you bought today you are not the shareholder of record tomorrow. People holding from yesterday can still redeem today and tomorrow depending on their broker’s cutoff, but if you buy today you cannot redeem.
Polestar has a minimum cash condition of $950 million to proceed with the merger. The trust is $800 million and the PIPE is $230.7 million meaning that GGPI can not have more than 10.09% redemptions ($80.7 million) or else the merger fails unless Polestar waives the minimum cash requirement. If polestar doesn’t waive the requirement the deal fails and the spac goes back to NAV ($10).
Source: 10-Q
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Yes just be careful here, lots of SPAC mergers have been cancelled recently last minute… There was RBAC / Seatgeek, OPA / Forbes and just yesterday AKIC / DNEG
Well, > 10% redemptions is practically a guarantee here (we’re probably looking at 90% redemptions), but that is a pretty substantial PIPE which they may waive to get. Funding isn’t easy to come by right now and a lot of these SPAC deal valuations are so ridiculous that even with the warrant liabilities, it’s still worth it for the company being acquired.
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