$TWND - A reflection of the current state of spac deals and the incentives offered

$TWND recently signed a definitive agreement with NUBURU, an unprofitable laser technology company. It’s hard to tell if the $350 million valuation of NUBURU is reasonable or not as I’m unable to track down the company’s financials. However, the company does not seem like a total scam so that’s a big plus (especially with spacs). They have a lot of patents and it looks like they have completed testing with many large customers and already have made a few deliveries.

However, that is not really the point of this post. What’s most intriguing about this deal is that anyone who holds through merger will get a preferred share for every TWND stock they own (slide 7). That preferred share can be “redeemed” after 2 years for $10. So, if this company is still functioning 2 years from now you’re guaranteed to be profitable. That’s a crazy incentive and really shows what kind of incentives sponsors need to give shareholders to avoid redemptions. Maybe there could be some value to be gained here.

See this link for investor presentation: Investor presentation

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