Reddit Posts
MCMJ - Finally a Weed Stock that is going through the roof!
$MCMJ -> $LEAF| DeSPAC Low Float Redemption Squeeze Pote...
$MCMJ -> $LEAF| DeSPAC Low Float Redemption Squeeze Pote...
I WENT YOLO IN $MCMJ 50k, redemption should be around 75% which can be seen by the reduced amount of lendable shares.
$MCMJ COULD MULTIPLY TODAY! AND HERE IS WHY!
$MCMJ - Can't be a low float deSPAC and is horrendously overvalued?
$MCMJ Ortex Short Interest data. Surprisingly the free float is actually 8.93m and not 11m. Looks like shorts are exiting before merger with Leafly. 1,240,000 Shares will be delivered if we close above 12.50 by 1/18 (13% of the float)
Shorts are exiting $MCMJ before the merger with Leafly. Ortex data also shows that the free float is actually 8.93m instead of 11m.
MCMJ -> LFLY Shareholder Approval on 1/1. 88.5% Profit Margin, 59% Short Fee and the possibility of a massive Gamma Squeeze
MCMJ -> LFLY deSPAC next week. Leafly has an 88.5% Gross Profit Margin but a 59% Borrow Rate. Fintel's #6 Short Interest Info with a potential Gamma Squeeze for 2/18
time for MCMJ liftoff! similar to Dwac with warrants and is a weeed stock! LFG
$MCMJ to move merger meeting to a later date. Announces $30M financing.
MCMJ - Taking a new approach to avoiding redemptions, or desperation?
$MCMJ - no short shares available as of not
$MCMJ - This little SPAC is fixing to take Leafly public very soon. Low float of 11.4m Shares and has Options with low IVs. Easiest pump of all time 🚀
$MCMJ, low float(merger with Leafly), weird option interest. Analyst pt of 15!
Buy MCMJ stock online $15 if people buy now LeAfly stock
MCMJ next week if all buy here it can go up in price Turn this into the next Prog
$MCMJ - A Severely Undervalued Weed Stock - High Gamma & Low Float
MCMJ - 6% downside for a possible gamma squeeze to 20+ within the week.
For those in weed SPACS (MCMJ / MAPS / etc.) - this is pretty big news (linked to a summary comment from WSB)
How come noone is talking about MCMJ spac, merger with Leafly (weed company) short float.. weed hype
MCMJ is still the best setup spac to blow. Now is the best time to take a look with all the weed news blowing around. Join in guys, potential to 5x your money with little downside. Need people’s help for this to explode
($MCMJ) Florida Judge Rules In Favor Of Online Cannabis Ordering Via Sites Like Leafly
$CAR WOW We are coming 🔜 $MCMJ Heads 🆙 Shorters✈️🛫✅
$MCMJ - It’s The Highest In The Room - Pre-Redemption SPAC Play
$MCMJ blowing up on social media - Gamma ramp continues
$MCMJ Getting ready for takeoff 🛫 $MCMJ $MCMJ #FinTwit: “Wow - $MCMJ has an $IRNT -esque setup @ relatively low risk. Crazy
$MCMJ is the first stock with: 1. Big gamma squeeze potential. 2. Big short squeeze potential. 3. $10 floor (max 8% loss from Friday’s closing price). 4. Low float (11.7 million shares). 5. Solid underlying business ($574 mln mkt cap, $45 mln 2021 revenue, 51% CAGR).
MCMJ - Low redemption (1mil) out of 16mil shares (aka. low float) of this SPAC
MCMJ - Low redemption (1mil) out of 16mil shares (aka. low float) of this SPAC
$MCMJ is going to have a gamma squeeze just like $BKKT and $IRNT, the call volume is off the charts and it's just a matter of time before take-off!!
Stocks with a good chance of tripling or more by the end of 2022, which ones?
MCMJ calls and shares carrying my green portfolio from prog
$MCMJ #FinTwit: “Wow - $MCMJ has an $IRNT-esque setup @ relatively low risk. Crazy.”
$MCMJ - It’s The Highest In The Room - Pre-Redemption SPAC Play
$MCMJ #FinTwit: “Wow - $MCMJ has an $IRNT-esque setup @ relatively low risk. Crazy.”
I been saying it for weeks… MCMJ this is your last fukin chance lmao. Someone put it up on wsb please idk how to get past mods
$MCMJ - WOW already 30k options volume on the NOV 10 c and it's only been 1.5 hours
$MCMJ - WOW already 30k options volume and it's only been 1.5 hours
For those with cash and looking for lower risk plays, LEAPs on GGPI/FPAC/MCMJ look good and IV is low
$MCMJ Huge News Tomorrow. Sold the Options! Bought Shares!
MCMJ update, still moving up and still plenty of room to run
Mentions
What? I appreciate the research effort, but I think the logic is suspect. It doesn't matter much, because you're still showing Barron's is exaggerating it by being misleading. I'm not sure why you figure the annualized rate? Maybe that's because of what Barron's started with? Also, I'm not sure why you include active SPACs? The point is, of SPACs that close, how many are successful (get to market) vs. how many terminate? In the past 6 months, the ratio is 25:70 (your numbers, thanks for compiling). So of those SPACs that ended in the past 6 months, 25/95 is a 26% termination rate. In the time prior to that, the baseline failure rate is 21:N, (assuming Barron's 21 is correct), but we need to find N. (I get 411, see below). So 21/431=4.8%. These are similar to your numbers of 1.05% to 6.3%, but it isn't an 'order of magnitude', at least not by any definition I'm familiar with. Back to Barron's, they presented two similar numbers (25 and 21) and two time periods (6 months and 141 months). Their implied statistic is that the failure rate is 20x more severe now, because it took less than 1/20th the amount of time for the same number of failures to accumulate. But it's not, by either of our calculations, it's 5x more severe. Further, they imply (from the headline) that this might be because of SEC regulations, but that fails to address that the past 6 months have been a relatively down market, which from what I've been reading is a much bigger factor (e.g. valuation mismatch) than some extra SEC regulation (e.g. such as warrant overhang headaches) \--- All of what follows is just minutia compared to the above. According to SPACTrack, of the 29 closed in 2022, 1 is from 2019 (MCMJ), leaving 28 from 2020-2021. Also according to SPACTrack, of the 199 that closed in in 2021, 2 were from 2017, 5 from 2018, and 29 were from 2019, meaning 163 were from 2020-2021. So, all prior closings are the 226 SPACS from 2006-2019, plus the 292 SPACTrack says closed in 2020-2022, minus the ones double counted because I can't easily filter on SPACTrack, and also minus the past 6 months. (226+292-1-2-5-29-70=411) ​ >SPACTrack also shows 292 completed mergers since January of 2020. About 70 of those occurred in the last six months. Adding those 70 to the above 719 makes 789, and makes the annual termination rate about 6.3%. That leaves 222 SPACs that completed their merger in 2020. So it seems unlikely the "there were 226 total SPAC IPOs from 2009-2019 inclusive" statement is correct, since it's pretty certain there were more than four SPACs that completed their mergers from 2009 through 2018. I'm not sure how you get this math. SpacTrack has a fliter for 'mergers that closed in 2020' in the upper left, and when I click on it, SpacTrack shows 64 that completed in 2020, not the 222 that you calculated (in the blockquote above). And 10 of those 64 IPO'd in 2020, so that's 54 closing in 2020 that IPO'd from 2017-2019, according to SPACTrack. So I'm not sure how you get 222. \[Apologies for using [statista.com](https://statista.com) it didn't have a paywall on my mobile device\]. Let me try to use numbers you can see: [https://www.spacanalytics.com/](https://www.spacanalytics.com/) Which for 2009-2019 is (59+46+34+13+20+12+10+9+16+7+1)=227. This also seems to visually match this site: [https://www.spacresearch.com/newsletter?date=2021-01-04](https://www.spacresearch.com/newsletter?date=2021-01-04) Which is pretty authoritative, but doesn't have numbers. So, I think I stand by my original statement of 226 SPAC IPOs from 2009-2019 inclusive, it's about what I remember from 2020; that 2020 exceeded all previous issuances. Any discrepancies might be that some insider sites might track SPAC fundraise date as their start, and some other scraper-type sites might track first day of trading as their start, and there could be months inbetween.
I bought some commons last week, not a whole lot. I’ll what happens till Wednesday morning. These gamma squeeze plays sound good in paper but don’t really pan out well. MCMJ was a SPAC that had a huge amount of ITM calls and it had nav protection as well. There was a lot of chatter about its gamma squeeze potential like in this one. At the end it fizzled out. While I have no way of proving my suspicion but i believe someone, probably an arb firm, loaded up on cheap warrants and started pumping it. When the price of options went up they took the profit. Call sellers know most option buyers don’t exercise them so they’re not worried about paying 19% borrow fee…that’s 19% per year not per day. Also I think sellers have 3 to 4 days to deliver shares. Even if share prices go up they’ll have deliver a fraction of OI calls. Oh one more thing. Greedy idiots buy lotto OTM calls with high strike price giving free money to sellers, basically more money they can use to buy ITM calls if they can’t hold the price down. Strategy should be to buy commons not options for this to work. That may be asking too much of majority of retail. Well having said that, it’s a decent r/r with nav protection.
I took $120 to $450 by playing SPY 0dte (zero days til expiration) calls. I took $450 to $12k by playing BKKT. If you peep the chart in late October it went from $9 to $50. I had 4 $10 calls that i bought for $100 bucks each I sold for $3k each. I took $12k to $24k by playing MCMJ - there was some hype where the the SPAC company MCMJ was egging on a gamma squeeze on their Twitter. But it turned out to be all hype and nothing happened. But still doubled my money off calls with a spike in IV. I took $24k to $70k when the SPAC $RTPY changed tickers to $AUR. There was a spike from about $10 to $17 and cashed out after tripling.
SPY 0dte’s 120 to 450 BKKT 4x 10c when squeeze 450 to 12k MCMJ calls 12k to 24k AUR calls for despac 24k to 70k
14% off of ath, -6% ytd. My main losses came from RBAC and MCMJ 7.50c late in 2021
Wrong spac. LFLY was under the MCMJ spac. You're referring to TREB.
Basically shares are moving between the old ticker MCMJ to LFLY is my best guest here
No, read the S4 not all shareholders are bound by the lockup. Unlike HLGN, GRAB etc which laid out the exact number of shares unlocked, MCMJ did not so can't say what fraction is unlocked (like BZFD etc). But all the shares have been registered.
I'm ready loaded up. I'm seeing increasing interest in this company now that it's LFLY as opposed to MCMJ
Also, unsure of your copy-pasta failed deliberately or accidentally, but that link has nothing to do with MCMJ.
The problem is the general bear market. For something like MCMJ, it was almost reasonably priced if you squint the right way back when the deal was made, and indeed, even popped a bit. But with its comps down by over half, well, everyone redeems.
EZFL When it IPOed I laughed and thought it was an idiotic idea. After a week or so, I started to notice everywhere a mobile gas filling station could be used. I didn’t do any analysis at all, I just keep adding every week. Also MCMJ Leafly is damn cool. Lastly is CEI/Viking I like James Dorris and all the blah blah they are trying to do.
Holding 420 MCMJ warrants is a less funny joke now
Yeah I remember that. MCMJ is so dumb, like do they not realize release redem numbers will cause it to pop and if they get lucky, pop to 10 so their arbers will sell out to retail and they don't have to buy the shares back from arbers? It's honestly in their own interest to release, unless they are looking to buy shares down here for their own pockets...
when is the last date for them to disclose redemptions? Remember ML - did not disclose info on time and never recovered. Same with MCMJ. It was always scummy with delays etc. Leafly is terrible just like MAPS
Just waiting on MCMJ numbers and watching these penny flippers is so exhausting... zzz...
I've been buying MCMJ a little here and there for almost a year now and put bought more during this most recent dip on the announcement that they were merging with Leafly, so I'm curious about your thesis on a possible shot squeeze. Is this based off a short interest you saw somewhere, or did read about it somewhere? Please share what you got.
They had a short in MCMJ for example. Shares get redeemed when the merger vote occurs. And their brokerage where they hold the short, closes it and assigns them a share of MCMJ Example
Spacs have been squeezing to the moon because as of late, all shares are being redeemed!!! Check out MCMJ Thank me later See https://markets.businessinsider.com/news/stocks/spac-short-squeeze-investors-redeem-shares-mergers-complete-2021-8
If shorts are right about $MCMJ to $3.00 how come we aren't gapping down or does that usually occur after ticker change?
Redemption squeeze play— look at $MAPS. It’s a better business with a better valuation trading lower than $MCMJ— there’s a reason it’s trading down
I'm telling you the short shills are out in force for some reason. I hope MCMJ fs them with some insider buying. But the more puts they buy the better. Will just make it more explosive.
\- $MCMJ traded 3,000 volume, not 2,000 volume after hours ... \- You're citing the exchange reported SI which is half a month old ... \- The +20% in AH means nothing. The bid/ask is literally almost an entire $1 ... \- It sounds like you think 100% Utilization means that MM's are incapable of shorting this further (not just tomorrow, but over the next few days as people buy/sell even more). That is not what 100% Utilization means ... \- The free float is above 10m shares. The CTB is above 10% but the SI is only near 10% of FF, which is hardly enough to warrant a squeeze ... $MCMJ WAS (keyword WAS) a POTENTIAL gamma squeeze. That gamma squeeze potential got fucked by repeat extensions being filed since late November. They burned through a lot of speculative traders who likely over-extended on the deep OTM calls (the OI was pretty high in Nov/Dec when I saw it). And those options just sat there eating theta decay inching towards being worthless expecting the hold to pay off and the gamma squeeze to squoze, only to be wrecked by the SPAC merger being pushed back. Aside from all of that, there are forward purchase agreements involved here and some key indicators you can draw from the way this has been trading lately (post-redemption/pre-merger volume, for instance) that point to this failing at checking the boxes that contribute to a redemption squeeze price movement. I highly recommend you read this person's thread highlighting the reasons why this fails in that category and why a short position or Feb/March puts makes much more sense here. [https://twitter.com/EggPlatypus/status/1487992657536163842](https://twitter.com/EggPlatypus/status/1487992657536163842) More importantly - please stop posting these (and stop putting a DD tag on them ffs) when they are lightyears away from anything resembling "due diligence", but more importantly when they clearly demonstrate a lack of understanding on how to interpret the data you're allegedly citing. I'm only being harsh because this is a clear attempt to make other impressionable traders on this sub jump into this trade with you and likely lose money.
$MCMJ vote approved. Now behaving like a low floater... where my Bulls / Bears at?
When does the MCMJ ticker change?
Until I got more information where some people think MCMJ closer to Dutchie than to MAPS
I remember you shilling MCMJ as a 'Gamma squeeze' candidate when the vast majority of calls were obviously STO and many people raised that point. Please pump this POS to 10 so I can add more puts, I don't have nearly as much as I wanted as IV spiked before I could add a decent position.
The locked up shares don't count either way because ... they are locked up. For 180 days. The shares not locked up - the MCMJ shareholders - do as they please. There's about 11M of them. The $10 is no longer a relevant reference point to them, either as a ceilng or floor. This playbook has been repeated time and time again since deSpacs started happening. No reason to make this more complicated than what it has proven to be.
$MCMJ bulls vs bear's... i wonder who wins.
LMAOOOOOOOOOOOOO It is the real world cuz someone bought shares at 3.8B valuation. It's on different than us buying MCMJ at 500M valuation
Okay whatever, buy MCMJ and enjoy the ride down to $2 lol
I redemption is high, this is gonna happen to $MCMJ. All the puts need to be sold as no retail will exercise their long puts. With low float, super easy to squeeze.
MCMJ never even got close to the nav since the original vote. And it was only arbs picking up shares to redeem. I’m predicting a float of under 700k once redemptions are announced. Picked up shares and feb 12.5c’s. This is the most excited I’ve been for a squeeze play
MAPS saw 29.50 within 2 months of going public. It pumped almost 300%... Unfortunately this happens with a lot of SPACs, but I don't want to miss the boat when MCMJ -> LFLY has its moment.
Yeah your shares and options will just have the ticker change. It should be the day after approval, so MCMJ should become LFLY on 1/2 if they are approved on the 1st.
Without all the delays and the bullshit going on with $MCMJ the commons are supposed to stay near NAV until the floor is removed.
TBH I'm kinda bullish on this. Only issue is guessing where arbers will sell but some say 12.5. And don't forget about reverse redemptions. I do think MCMJ > MAPS, but seems like Dutchie the best, or so from what I gather reading social media LOL. I aslso think deal is going through.
Question regarding MCMJ: Why did it tank before redemption period expiration? Is it not a golden opportunity for at least an institutional investor to buy shares at the market up to 10 usd and immediately redeem them till the deadline today at 5:30pm ET? What do I miss here? Anyone know why it’s tanking anyway? Who sells instead of redeeming the shares?
Oh really? IVAN and MCMJ lost their NAV yesterday and their votes are 2 days before SBEA's. Maybe there's a bank holiday in the next few days?
My question is, if there downside is 10.16, if MCMJ goes to 10.16, would they sell immediatly. Wonder if they have a strategy to sell at x% higher than 10.16 in the offchance it happens, I mean it's basically a bunch of free calls.
A tiny part of me wants to be bullish this company. Dutchie has supposedly has 3.75B vale and 121M in revenue - this is as of 2021 and reading between the lines on some twitter posts, seems like the valuation still holds TODAY. That makes MCMJ supposed to valued at 1B. I think this may be a secret buy, maybe not right now, but at some point.
u/Quarantinus does make a good point about MCMJ. Max pain with those expensive puts is defiantly in the picture lol These plays usually gain momentum after redemption numbers are officially confirmed. I had looked into this play a while back thinking the deal was going to be like ESSC, but after the extension vote not enough bagholders redeemed. The 1.4 million shares held by investors doesn't seem binding (reads similar to ESSC), so I'm wondering if those shares were redeemed anyway. However, these investors could be affiliated with Merida. If that's the case, they'll hold shares through BC and have the option of 'redeeming' 3 months out from BC (I think). It would also be hilarious if they postpone meeting again. "transfer to the Public Stockholders an aggregate of 1,000 shares of the Company’s common stock (“Founder Shares”) beneficially owned by it (or its designees) for every 45,450 Public Shares not redeemed by the Public Stockholders" aka \~ $310,000 extra split up amongst investors.
>You’re too emotionally I'm sorry but I'm not like you, these things don't affect me, so no need to project. I gave up on MCMJ [four months ago](https://www.reddit.com/r/SPACs/comments/pzm010/meridia_corp_i_a_preredemption_spac_with_a_unique/). I know the stock eventually became a bit popular soon after that and then the frenzy dried out. In line with the recent discussions people have been having on this sub regarding this spac-into-despac shorting practice, and how endemic it has became, I decided to post a comment about one such event right as the shorting was developing live. It was only fitting in my view. If you apparently "don't give a shit" but keep writing post after post like a crazy man, it makes it look like you're not in control of yourself. I don't want to keep with this useless exchange, so let's end it right here.
That's a different type of bottom you are talking about, that's from a fundamentals perspective and even if the spac target were absolutely terrible (which it isn't), it would take months to reach such a value. I'm referring to the short-term bottom the short-sellers have decided to start covering at. FATH's was the low 5s, VMAC's was in the 8s for example. MCMJ is dropping too fast, all the others took days just to reach the 7. These shorts are too eager to get some. >I have no position here Sure.
MCMJ getting massively shorted right now, in line with the new trend of shorting SPACs as soon as the floor is removed (FATH, VMAC, etc). Just look at the price action. Exactly zero shares available to borrow since 9:15am according to IBKR (check [shortablestocks.com](https://shortablestocks.com) or [iborrowdesk.com](https://iborrowdesk.com)). Fintel shows just 600 shares available to short and Ortex shows Utilization at 100% (all the brokers they have probed have no shares available to lend anymore). Borrowing fees are rising today too. It's even optionable, so the short-sellers think they are safe by "hedging" with calls. The float is pretty low. I'm not creating a thread on the squeeze subs or anything of the sort, but if this starts attracting attention and people start piling on, these shorts (several from this sub too) will be underwater pretty soon. The stock is already trading in the low 7s, quite the bottom given the spac target.
Damn MCMJ put gang licking their chops, congrats
Floor removal on MCMJ is made really obvious people don't like this deal.
Most of the upcoming ones that have options, https://www.spachero.com/calendar/. Sticking to 2-5 each for now in case one of them pulls an MCMJ and delays the meeting.
I sold 500 shares of MCMJ short and bot $10 calls as a hedge. Is there a risk of these shares being called in at the redemption price?
I would use some caution here, as buying puts before the merger/ticker change is risky as it's possible for them to cancel the deal or shift the merger like MCMJ. Here's a calendar with the upcoming ones in green, the one's I'm looking out for are SEAH, IVAN, CCAC, and MCMJ.
Yeah I lucked out that MCMJ puts were too expensive for me to consider, otherwise I definitely would’ve gotten wrecked.
I’m waiting for merger dates. With options I’m looking at FPAC, MCMJ, ESSC, DWAC, CFVI Without options: OCA, DUNE
Yeah, watched huge profits evaporate on my MCMJ Jan puts with the shenanigans. Hope my Feb puts don't meet the same fate.
Need some more of these. Puts are just so pricey but if they fall to $5 still gonna make money. Concern I have now with buying puts is MCMJ delaying or even just calling off the deals.
Put-call skew on MCMJ is caused by "everyone" wanting to short through the redemption day, but can't.
The put-call skew on MCMJ is absurd, it's possible to sell a April 7.5/10 box spread (worth $2.50 at expiration) for $2.70-$4.15 in credit netting free money if you can survive the margin calls (not that I would try it).
$MCMJ delayed the vote to 1st Feb, just in time to ensure all the Jan 21 Options expire worthless.
New MCMJ vote date set for Feb 1 https://www.businesswire.com/news/home/20220118005560/en/Merida-Merger-Corp.-I-Adjourns-Meeting-to-Approve-Business-Combination-to-February-1-2022
I accidentally stumbled upon MCMJ's strategy. Keep postponing the merger date and burn the puts gang while collecting premiums.
How'd you make out with the sudden move of the BC meeting? I had Feb bear put spreads so I bought back the short puts for nearly nothing this morning. Now waiting to see if MCMJ will announce a new date that falls before Feb 18 (reinflation the long puts) or if I need to take my lumps and close.
MCMJ option holders got wipe out, no matter if you're playing the squeeze or buying puts. Yikes.
Anyone care to venture an educated guess on when they will reschedule the BC mtg? The current extension deadline is Feb 28, 2022. MCMJ now has a backstop and a convertible note to support capital at the combination. If the only need for rescheduling is to keep the SEC off their back by giving enough time for new information to be digested would they give 7 days? 30? They could give 30 without needing to request yet another extension.
i bought $BOXD puts today and also (thank fucking god) sold all the $MCMJ puts i had been holding since last week for about a 150% i’m so thirsty for shitty-SPAC-company puts now 🤩
Short volume for MCMJ today was 258k. In any case, shorts don't "need to cover" (in the sense that they don't have to buy back shares in this case). They could try to do it while the stock is still trading below $10, but the stock price will likely be at $10 at 4:01am tomorrow, so no chance. If the shares they borrowed are redeemed, the broker just transfers $10/share from the shorts account to the lender's account and registers the short position as closed, so they are not forced to buy back the shares in the open market. We just had a recent case of that here in the daily thread about two days ago.
I knew MCMJ was turning into some kind of weird play
This was probably setup to let the puts expire worthless. Shorts will need to cover now, as well. Remember, this stock had 600K+ of volume today, the majority of which would have been traders shorting, as investors would have known NAV protection ended yesterday for future buyers, therefore those buyers would value the business, as opposed to cash on hand. All of that needs to be covered, now that NAV protection is back, and ARB's drive this stock back to $10 The convertible note, enables MCMJ to meet the minimum cash condition, so this should fly through, in the next couple of weeks (wont be suprised if its delayed to ensure the Puts expire worthless).
# RIP Shorts and Put Buyers. **$MCMJ** Leafly and Merida Merger Corp. I Announce $30M Convertible Note Financing In addition, Merida announced that Merida’s special meeting to vote on the proposed business combination, originally scheduled for January 14, 2022, will be adjourned to a later date to be announced, to give Merida stockholders sufficient time to evaluate the terms of the note financing and certain additional information
MCMJ tanked hard today, bummed I missed out on that one.
I thought MCMJ puts were expensive, both Jan and Feb 10p up a ton today. Lol.
Damn what happened to MCMJ? I thought merger was later this week but huge drop this morning
MCMJ poots are literally free money. Going to 5 or below
MCMJ CCAC TREB you’re welcome
I've been thinking about making a post similar to this regarding BOXD because I don't really understand the incentives and mechanics of FPAs and they are becoming more and more important to the SPAC ecosystem. I'll just dump it here since there's already a conversation going: \_\_ SVOK/BOXD is a recently merged SPAC. They appear to have done something similar to ESSC (and other "shittySPACs") where a Forward Purchase Agreement (FPA) was executed to meet the merger requirements and preserve the sponsor payday. Via this FPA, "ACM" bought 6.5M shares and waived redemption rights. These shares are being held by ACM for up to two years and BOXD warns "We will not have access to the Prepayment Amount immediately following such payment and, depending on the manner in which the Forward Purchase Transaction is settled, may never have access to the Prepayment Amount, which may adversely affect our future liquidity and capital needs." The prepayment amount is being held in escrow in the meantime. From [the S-1](https://www.sec.gov/ix?doc=/Archives/edgar/data/1828672/000110465921152347/svok-20211221xs1.htm) *Forward Purchase Agreement. On November 28, 2021, SVOK entered into a Forward Purchase Agreement with ACM. In accordance with and as contemplated by the Forward Purchase Agreement, ACM purchased approximately 6.5 million shares of SVOK Class A common stock from SVOK stockholders prior to the Closing. As contemplated by the Forward Purchase Agreement:* *● Prior to the Closing, ACM purchased approximately 6.5 million shares of SVOK Class A common stock directly from investors at market price in the public market. ACM waived its redemption rights with respect to the acquired shares;* *● One business day following the Closing, SVOK paid approximately $65.8 million from the cash held in its trust account to ACM;* *● On the fourth business day following the last day of the Valuation Period (as defined below), ACM will make a cash payment to us equal to the sum of the products, for each trading day in a defined valuation period (the “Valuation Period”), of (i) a daily settlement price and (ii) a daily number of shares of Common Stock based on a defined percentage of daily trading volume of such shares on the NYSE. Subject to certain optional early termination provisions, the Valuation Period will commence on the earlier of (i) the 2-year anniversary of the Closing and (ii) the date specified by ACM in a written notice (not earlier than the day such notice is effective) that, during any 30 consecutive scheduled trading day-period following the Closing, the volume weighted average trading price per Share for 20 scheduled trading days during such period shall have been less than $5.00 per Share; and* *● At any time prior to the Maturity Date, ACM may elect an optional early termination to sell some or all of the shares of Common Stock in the open market. If ACM sells any shares prior to the Maturity Date, the pro-rata portion of the Forward Purchase Price will be released from the escrow account and paid to Boxed. ACM shall retain any proceeds in excess of the Forward Purchase Price that is paid to Boxed.* [The FPA](https://www.sec.gov/Archives/edgar/data/0001828672/000110465921144622/tm2134135d1_ex10-1.htm) is a slog to read, even with the summary in the S1 to help. If I understand right, ACM will make money if: \- The shares are >$10 in the open market and they sell them (escrow funds get released to BOXD to match the shares sold, ACM keeps the excess). \- The shares are <$5 and they terminate early, selling them back to BOXD for the VWAP price - $0.20. (they keep the difference) \- If after 2 yrs the shares are <$10 and they sell them back for less than $10. (again they keep the difference) \- They will essentially break even if the shares are worth $10 on the open market in two years, but they still get some fees. My questions then: \- Do I have it right that ACM is essentially short BOXD and stands to make out on the deal if the share price falls? \- Isn't this equivalent to SVOK and BOXD gambling on accepting up to a 50% fee on this $65M in order to preserve the merger deal and go public? \- How is this better than renegotiating the deal valuation to a value that will not cause 99% redemption? \- Does anyone know if this is a relatively vanilla FPA or are any of these terms unusual? u/SquirrelyInvestor \- I thought you might be interested since this is similar but more involved. My plan since last week was to slog through the MCMJ FPA early this week and then make a decision on positioning short.
This agreement occurred with GIG (now BBAI) as well: https://reddit.com/r/Spacstocks/comments/q8otd9/gigcapital4_enters_into_forward_purchase/ BBAI is now at $5 one month after despac, so I think we have a good idea how this will play out already. On top of this, MAPS at $10 was much better value than MCMJ at $10, and MAPS is $5 now. Disclaimer: I have some MCMJ puts, but not enough I think.
Watching BEAT for monday, MCMJ has merger vote friday as well HeartBeam to Participate in the H.C. Wainwright BIOCONNECT Conference https://www.theglobeandmail.com/investing/markets/stocks/BEAT/pressreleases/6801694/
somehow ended up 6% up this week 🤷♂️ MCMJ puts are looking good going into next week
You keep on speculating on my words when what I’m saying is quite clear. A high SI provides additional potential buying pressure. That’s a positive variable. When and if the shorts cover depends on the situation. On the flip side of that, the higher shares available to short leads to an increase in potential downward pressure on a particular stock; see MCMJ in the past month or so. Very high OI with a not so high float. Result; got crushed. Even when Telsa was gamma squeezing, the relatively high SI played a large factor. Furthermore, with the free float calculations being speculative at best, the heavy reliance on delta hedging by MM’s is sub-optimal, particularly as it isn’t nearly as simple as “stock goes up, MM’s have to hedge their calls”. The level of MM activity on ESSC isn’t even known either. Not all options come from MM. Now SI is absolutely not inherently needed for a gamma squeeze, but certainly serves to help (which should be extremely obvious). IRNT was also at first a redemption play, leading to a credible small free float, ESSC is not that. However the NAV floor remaining can also be seen as a positive in some aspects. Overall this simply doesn’t have the legs to really take off like IRNT. Which is perhaps why people are pumping it so hard….
>MCMJ has that weird clause that lets certain holders reverse redemptions. Did they announce in advance? I remember a couple of other reversal announcements recently, but they all seemed to come as a surprise. Can't remember specifics, didn't affect any of my holdings.
Yeah, MCMJ likely won't squeeze. Option to redeem 3 months out plus additional shares so that will be a big overhang.
MCMJ has that weird clause that lets certain holders reverse redemptions. Could be good for a swing below 10s, but wouldn’t expect much action above 10, unless I’m misinterpreting how that works.
Trust too big? MCMJ looks good. Although DCRN probably will get the higher redemptions.
The trust is pretty big. MCMJ seems better... Smaller trust plus options.
MCMJ put premiums are ridiculousness
Yeah was eyeing MCMJ puts but they ran up a ton before I could buy in, unfortunately. Stuff looking pretty pricey across the board right now.
Highly recommend buying puts before mergers. I’ve made 20-30% gains on puts for ATHN, NGCA, MCMJ, and XPDI in the last few weeks, buying a couple weeks in advance and selling the day of merger or 1-2 days before. There’s little risk as the put often goes up in price even before the merger vote; I could have definitely made more but 30% is great for almost no risk. If you’re following SPACs anyway, this is a great source of side gains.
because MCMJ has a deal vote set on 1/14 so the $10 floor is being removed in 1 week vs ESSC $10 floor is still there indefinitely until deal vote.
Put gang why are MCMJ puts so much more expensive than ESSC? Only explanation is MCMJ is expected to go through whereas ESSC is who knows?
ESSC: huge twitter/discord pumping going on, try your best to get out before the pump. Kinda laughable that people are talking about 300k float even though 10x traded that yesterday and raised the price 13%. Yes, I'm bitter I didn't load up at $10.50. BENE: why short? It's at NAV and not going to merge any time soon. If anything it may pump if extension gets approved today, esp considering they would add 20 cents to NAV, making it $10.35 MCMJ: with you on this through puts, at least 3.2M shares backstopped through arb investors (meaning they will happily sell if it goes above $10.06 or sell back to MCMJ after 3 months for $10.15)
good morning/night r/SPACs ! any thoughts on what i got going on right now? long: $ESSC & $PL (just started my position this week don’t kill me) short: $BENE , $MCMJ, $EMBK
MCMJ the next low floater? Lockup exist?
I wasn't tracking BKKT price then but was that because it took off too high causing high IV making the puts a lot more expensive and then it did not drop fast enough before options expired? I'm buying puts on MCMJ, TREB and XPDI but I'm wondering if I should wait a bit until just before merger so that I don't lose a lot of theta decay. Maybe wait until a few days before merger to buy Feb options.
According to this 0 shares available to short so not sure how you could short without buying puts... https://www.shortablestocks.com/?MCMJ