You are probably correct Sir, I just find the timing curious considering those involved?
And as for the sale I doubt many would be happy with only $375m.. I wouldn't..
But Pipe investors could push the price to whatever the listing value on the NYSE is likely to be without limit..
$Billions are not uncommon..
A SPAC merger, the acquirer and the target company typically agree to a minimum cash flow, and that amount is usually more than what’s held in the SPAC’s trust, which is why a company then goes out for a PIPE deal, according to Alex Fayette, a principal investor at ACME Capital.
PIPE deals have just about become standard with a SPAC deal, and they’ve become something of a way to validate a deal by blue-chip investors.“It’s some stamp of approval of, ‘This is a good deal, this is a good business’…there’s that validating point,” Fayette said. “But the other point, similar to IPOs, is you’re typically trying to optimize for partners who have a long-term investment vision of the company.”
4DS Price at posting:
9.1¢ Sentiment: Hold Disclosure: Held
