CBR (ASX) Ann: Lodgement of US Registration Statement (F4) with the US SEC

Originally posted by Snax: ↑

If they had managed to keep redemptions minimal I would have thought this would have been a great deal for CBR shareholders (and a bad one for SPAC holders). Given the valuation placed on the merger the only reasonable outcome intuitively would be that most SPAC holders redeem. Seems crazy to think that any other scenario was plausible.

So if this is to go through the merged company wont have much more money, once paying for the transaction itself, than CBR prior to the merge. The only difference will be that it trades on a different exchange. To me, logically this is where it was always going to land. If its simply a change of exchange I would question why the valuation will change? Anyone have any thoughts based on whats known now?

It feels like CBR were really trying to "reinvent the wheel" with the deal, but they'd already done that with their product!

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An interesting case study in SPAC mergers is Security Matters (SMX). 99.5% shares of the SPAC were redeemed leaving the princely sum of ~US$2.08M in the SPAC. SMX has spent $11M on the proposal's documentation! Both SMX and CBR's respective merged entities are to be incorporated in Ireland giving rise to the application of Irish law, CGT etc
In SMX the Independent Expert's report was that the merger was not fair, not reasonable and not in the best interests of shareholders yet the SMX board recommended the merger.
I expect CBR will be looking for PIPE funding should the SPAC's cash be insufficient for their needs. The IE report will make interesting reading.
In my view the benefits of this merger are heavily weighted toward the SPAC shareholders, who of course can sell their shares and continue to hold their warrants (exercisable at $11.50) leaving them with leverage to a rising share price. CBR shareholders on the other hand are screwed.

SPACs have a two year window to find a deal ... any deal .. otherwise they have to return the funds with interest to their shareholders and cop the costs of set up themselves, around US$8M is common.

I was a supporter of the company but not any more. I sold. Reminder to self .. next time I see a SPAC on the horizon - JUMP OUT FAST