MACU - Deadline in April, trading under NAV, chance for some shenanigans due to extension vote/redemption

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First, let me highlight the important elements of this trade:

  • SPAC is currently trading at 10.09 at the time of this writing
  • NAV is roughly 10.11 +/- 1 cent
  • Deadline is April 29th, 2022
  • Pre 14A has been filed requesting an extension. If/when there is a meeting for an extension, you will have the opportunity to redeem at that point as well

So the reason I’m bringing this up, is the fact that this has not gotten any attention yet, and as a result, is still trading UNDER NAV, which means this is potentially a risk free trade. As we all know, when SPACs end up with a low float for whatever reason, things can possibly happen. The date for the extension meeting has not been set yet, but once it is there’s a chance this ticker could get attention and move up.

Either way, the possible outcomes for buying in under NAV are:

  • The extension vote doesn’t happen. SPAC gets liquidated at the end of April, you receive your money back in full
  • Extension vote happens, nothing happens with share price, you redeem and receive your money back in full
  • Shares pop for whatever reason between now and the vote, profit $$
  • Shares drop by a few cents and you panic sell and lose (don’t be this guy)

I don’t really have high expectations for this, but it seems worth picking up a few shares under NAV for a free lottery ticket.

2 Likes
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No options

3

Unless I’m missing something, there isn’t anything to differentiate this from any other below-NAV SPAC that is approaching potential redemption.

If they vote to extend, the share price will dip, potentially substantially (~20 cents), but the upside looks very limited.

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There isn’t much different, but it is the only deadline in April, which makes me think there’s some possibility that people try to play it. If nothing happens I would absolutely redeem the shares by the meeting deadline, as otherwise the price, like you say, has a possibility of dipping to reflect the new deadline.

5

Jasonite was removed from the forums and the discord. I am going to keep this thread active. Please consider your own risk tolerance.