This seems a little absurd, but apparently 356,261 Class A shares were not redeemed out of the 34.5M pool. That’s a 98.7% redemption.
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(Source)
Grabbing a small position as I look into this more. Might have the usual squeeze potential.
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Can reverse by 8/29:
“In addition, Silver Crest has determined to allow holders of Silver Crest’s Class A ordinary shares to reverse their election to have their shares of Silver Crest’s Class A ordinary shares redeemed until 5:00 p.m. Eastern Time on August 29, 2022.“
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Last known SI is 54.7K. (h/t @RYVN) Which is just 15% of new float. So totally missing a major driver of a squeeze.
“Scalped” for a 2.7% gain lmao. Didn’t want to hold those shares after reading about reversal
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SLCR is holding steady at around the $10 NAV line. Not sure what the mechanism is, but somehow related to the redemption reversal deadline until Aug 29.
Took some 9/16 10C/12/5C bullish call spreads for $0.50, intending to flip them for $1. IV is nuts so not shooting for higher.
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In light of what happened on DNAA/AKLI, has anyone looked into the strength/breadth/duration of the sponsor/PIPE/insider lockups?
There hasn’t been a ton of volume over $10.037, suggesting that there haven’t been that many reversals actually exercised yet.
I might look into this if I get some time later today
FWIW, I would avoid share purchases anywhere close to $10.03 or above - not only does that allow more reversals, this has been consistently dipping to mid $9s at open.
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Looked into the lock-ups and share registrations a bit.
It seems likely that the only shares in the float for some time after closing of the business combination will be whatever shares are not redeemed from the SLCR public shares. Similar to GETY. So if not many shares have had redemptions reversed (and there doesn’t seem to be much volume over 10.037 since August 20), then this could be a microfloat beginning after 5pm on Monday.
Much might depend on how quickly the unregistered shares can have share registrations filed and SEC can grant EFFECT. Anyone have an idea of how long that typically takes?
I’ve made a spreadsheet (that I will upload in a follow-up) based on what I’ve seen based on the DEFM14A. Put together quickly and format is a little messed up, as I’m traveling and doing this on my phone, so feel free to check my work.
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For what it’s worth, my hunch is that the company tried to get at least 150k reversals so they could meet the $5,000,001 minimum proceeds condition. They didn’t seem likely to waive that (hence their deciding to allow reversals). That said, there has been very little volume over $10.037 so I don’t know what incentive there would be for anyone to sell into the float and reverse their redemption election.
Optimistically I’m seeing this as a potential 500k-600k optionable float.
I know very little about the underlying company, but “Tim Horton’s China” could capture a little bit of the China IPO craze.
Again, I wouldn’t buy shares over $10, but shares on dips (to $9.50 or so), and calls might be worth a punt. Warning: IV is definitely elevated.
I’m in with shares at a $9.60ish average, with puts to hedge. Will hold until I see definitive redemption/reversal numbers.
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@RefirgerateMyESSCash was that you trying to buy the float today.
In seriousness though Had 3x it’s normal volume could be the float numbers making the rounds 10c seem to have some volume on them as well.
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Reverse redemptions allowed until 9/16 now. Play is basically dead for the time being. I don’t even think sponsor got enough to put them at a 500k float yet.
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Nah, that was not me, thankfully. Was able to exit this morning with 8% losses on the shares and about 35% losses on the puts. Still better than if I had gone with calls, I suppose.
The extension announced this morning effectively puts in place a NAV ceiling, but the floor is gone. It also foreshadows a possible FPA being signed that would ensure some non-redemptions and guarantee a float that is not small. They don’t seem to be able to get enough volume above $10.04 to generate redemptions organically. I’m assuming they still haven’t gotten the ~150k share redemption reversals they needed. The deal may also be at risk of being terminated, which would be a boon to anyone bagholding shares or risk-loving enough to buy shares here at $9 (you’d get a payout at $10.04 or $10.05 a share). But it’s possible they just keep stalling, get and FPA signed, and this ends up being a 3 million share float at $6 a share.
Not worth the risk for me until we know more. Tread carefully.
https://twitter.com/blangb/status/1564600179868794882?s=21&t=aeIMvnsdhshcqvuNhjvJ0A
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