During the PSH investors conference Bill Ackman mentioned that a sparc prospectus will be filed next week. Completion by dec 9TH.
This could push momentum back into the stock. Will add more additional info on sparc later…
Events breakdown:
PSTH announced as one of the largest spacs during the spac mania
ran up to $31 on pure speculation and retail hype
announces the acquisition of UMG (Universal Music Group) – stock tanks due to an unfavorable acquistion
PSTH did not require all the funds to acquire UMG, will do a spin-off spac with the remainder of the funds
The deal is as follows: every PSTH share would net you some 1) SPARC warrants, 2) Shares of the new SPAC 3) a portion of UMG.
A spin off like this has not been done before and gets denied by the SEC
Lawsuit comes out blaming PSTH of not being a “spac”… PSTH is not able to continue further acquistions until this is resolved.
In the case that PSTH dissolves all PSTH share holders will get back the initial $20 + some tiny interest.
And some SPARC warrants that allow you to purchase the future SPAC at NAV. (for free)
From the latest Investor Call it seems like PSTH does indeed have a target and news should be dropped sometime soon.
Downside risks with shares seem REALLY low. Options are still pretty cheap. Strong support for shares at around $19.70
From reddit
PSTH has a hot lead. They may close the deal with PSTH or with SPARC, depending on approvals and timing. Bill obviously is hesitant to overpromise at this point so expect updates to be conservative in nature.
The lawsuit will not impact a transaction.
PSTH holders will get SPARC warrants regardless. Some changes to capital structure and the TL;DR is the warrants should be decently valuable while we hold ($2-$6)
BEST CASE: Deal closes with PSTH, and SPARC is distributed.
WORST CASE: SPARC is approved and we close the deal there.
SPARC holders who exercise and participate in the deal, get the same number of SPARC rights for the next deal. People who opt out will forfeit their right and that’s rolled into folks who opted in. This can be repeatable unlimited times.
Sparc warrants will be given when PSTH dissolves assuming no target found… SPARC will be bill ackmans next spac and will include no excecution risk or capital locked up.
There was a lawsuit accusing PSTH of not being a SPAC, which I hear is now being dropped?
Apparently on the PSH conference call today they said they have a lead and will make an update “soon”. I’ve been following PSTH for a year now and Bill has always been very cautious about providing timeline updates.
49:30
“The litigation will not stop the transaction that, we said we have one that we are ready to prepare to shareholders.”
somewhere later
“The best case is that we get a transaction done in the relative short term, hopefully, and thereafter launch SPARC holdings”
DA soon, before EOY based on the projection of PSTH transaction being done before SPARC approval by EOY.
Here’s more juice
Nov 2020 interview: https://youtu.be/hK7QeCF8rj8?t=3234
Bill said he wouldn’t make any public announcements (about the merger transaction) until they are certain about the transaction about a month out from the press release.
This month-out timeline aligned with the events we saw in May and June of this year with the Universal Music Group deal.
That being said, this ‘relative short term’ comment from Bill suggests an announcement in early to mid December to me.
Also Bill has claimed to be a “man of the people” after burning PSTH investors before. I expect him being conservatives with his claims… Purely speculative
SPARs are a novel security with unique features, which we propose to list and trade on the New York Stock Exchange (the “NYSE”). The listing and trading of SPARs will require the Securities and Exchange Commission (the “SEC”) to approve a new listing rule submitted by the NYSE permitting the listing and trading of subscription warrants by acquisition companies. A proposed listing rule has been published in the Federal Register for public comment, and is being reviewed by the SEC. There can be no assurance that a listing rule permitting the listing and trading of SPARs will be approved. If such a rule is not approved and adopted, SPARs would trade on the “over-the-counter” market , which may present significant risks to the holders of SPARs, including lower availability and efficiency of market price quotations, significantly less liquidity, increased trading costs, the absence of certain corporate governance protections, and the applicability of state securities laws that could result in restrictions on the sale of our SPARs.
It appears that SPARs will be OTC even if the SEC denies the new listing rule submitted by the NYSE.
In other words, SPARs are gonna happen.
