SPAC stocks have become the hottest thing since Robinhood introduced commission free trades! for early adopters of this SPAC stock trend it’s likely you caught a nice capital gain off Nikola or Draftkings but if your only just catching wind of this trend now, there’s still hope with many future merger and acquisitions coming up.
In fact some of the largest investors in the world are getting into SPAC stocks including Bill Ackman, who will be introducing a 4 billion dollar special purpose acquisition company that will be the largest ever. So let’s take a look and what we can look forward to for future mergers.
SPAC Stock OPES – BurgerFI To Merge With ( Opes Acquisition )
Do to the recent economic pandemic restaurant chains are likely hurting making this more unattractive to investors but that does not mean there still is incredible growth to come for this future merger acquisition.
Have you seen BugerFi Gourmet Hamburger chains popping up all over the east coast of the United States and major cities in the mid west? Their 125 locations, seem to be everywhere in 23 different states and their burgers are delicious. If the branding power remains strong this could be a good long term hold until the merger takes place.
The end of expansion is nowhere in sight for this BurgerFi because as of BugerFi is going public via a SPAC stock “Special Purpose Acquisition Company” OPES Acquisition Corp Nasdaq:OPES which will boost capital within the company allowing them to open more BurgerFi locations across the US.
Key SPAC OPES Agreement Terms:
- New company will be set up with $50m in cash to use for expansion and an additional $30m possible from other select investors
- $100m valuation from OPES Spac Stock to take the BurgerFi brand public to the Nasdaq exchange with ticker symbol BFI.
- Deal puts enterprise value of BurgerFi just under $150m
- Priced at 2.4x of 2021 Net Revenues
- Price to 2021 EBITDA of just under 14x (estimated 2021 EBITDA is $10.5m)
- Current shareholders get 6.6 millino shares of the new company (BFI) and wakl away with $30m in cash.
If you like burgers and believe this will be a sustaining brand even through an economic shut down, this may be your chance to own a popular restaurant chain before it goes public.
SHLL Stock – Hyliion Inc To Merge With Tortoise Acquisition
SPAC stock SHLL is an incredible introduction to the electric vehicle space, utilizing tractor trailers with battery, fuel hybrids! This technology has been largely questioned by people like Elon Musk who think battery is the only way. For now however battery technology can not compete in the tractor trailer space until further advancements, but for now hybrids are less carbon emitting and more fuel efficient.
This has lead to the interesting rise of start up companies like Hyliion, as they are tapping into natural gas as the primary fuel cell to power the tractor trailer against there competition Nikola who is focused on hydrogen fuel cells. Investors argue the ready availability of natural gas and with a well established infrastructure already in place it appears Hyliion has a better moat.
Tortoise Acquisition will merge with Hyliion, which provides Class 8 trucks with hybrid natural gas and fully electric drive train. Once the transaction has closed expected Q3 2020, the ticker symbol will change from SHLL to HYLN.
Investors should pay attention to this SPAC stock as its in the fastest emerging market and Hyliion will be one of the first to market, thanks to this merger taking place with SHLL stock “Tortoise Acquisition” and heres what you need to know.
Key Growth Factors For Hyliion Future Growth
- First to market for Tractor trailers, to be in production next year.
- Cheapest cost per truck over competition NKLA & TSLA
- The natural gas segment has a pre built infrastructure for refueling over Nikola’s hydrogen fueling that have to be built still.
- Gross profit expected to exceed $700 million by 2024
- Hyliion presuming future growth trades fro 1.8x 2024 EBITDA
SPAC Stock SHLL Agreement Key Points.
- Hyliion to go public at a $10 per share, and to have a market capitalization of $1.5 billion when it does.
- Hyliion though SPAC SHLL will hand over $560 million in cash to fully fund the commercialization and mass production of the company’s electric hybrid tractor trailers.
- Nothing else can be expected before the merger is finalized, probably toward the end of Q3 2020, so late September.
I will be watching this SPAC closely considering the explosive hype that surrounds the competition Nikola ever since there merger acquisition.
LCA Stock – Golden Nugget Online Gaming To Merge With Landcadia
With Vegas in trouble the Golden Nugget casino and brands associated have been struggling. The CEO Tilman Fertitta is raising capital through a SPAC with a recent launch of online gambling. This could be the Golden Nuggets saving haven and also provide you with a unique opportunity to own a piece of the action.
Now though this merger acquisition is happening with the Golden Nugget casino brand it will only be for there fast emerging online gaming segment, which let’s be real right now would not be wise to own Golden Nugget Casino with the current economic pandemic.
What you need to know about SPAC stock LCA Landcadia Holdings II trying to acquire Golden Nugget Online Gaming with a recent purchase agreement to IPO under stock GNOG. Let’s start with the contract highlights then figure out why Golden Nugget Gaming is going public through a SPAC.
Key SPAC Transaction Terms
- Transaction & Enterprise value of approximately $745 million.
- 6.1x GNOG’s estimated 2021 revenue of $122 million.
- Upon purchase Tilman J. Fertitta, Chairman and CEO, through the parent entity of GNOG, hold a controlling economic interest.
- Landcadia II will be assuming $150 million of GNOG debt plus pay prepayment fees, transaction fees and expenses.
- structured as an Up-C where an entity indirectly owned by Mr. Fertitta will retain common units of a partnership managed by the combined companies.
GNOG Stock Highlights
- Started in New Jersey 2013
- First profitable in 2016
- First casino to launch online gaming with Live Dealers in the US
- Top industry Operator
- Net Income of over $11 million in 2019
If online gaming is something you think you understand this may be the SPAC for you, with many states now introducing legalization of the action it may be a good long term play. Online casinos may be doing better because of the economic shut downs which is good signs to investors for the brand!
Billionaire Bill Ackman Introduces A SPAC Stock
This SPAC stock has gone public yet but you will have to watch for when Bill Ackman announce the IPO of there holding company trying to raise 4 billion dollars which will be the largest SPAC in History.
SPAC stocks “Special purpose acquisition companies” are formed to make acquisitions with their IPO money, IPO investors are not notified in advance which business a SPAC will purchase. Ackman how ever hasn’t indicated what he’s going to buy leaving investors excited .
SPAC key points
- The SPAC stock ticker will be PSTHU and has not been posted yet so keep your eyes peeled
- William Ackman’s investment style as an active fund manager, makes SPACs suitable for Pershing
- Ackman’s Fund Pershing Square holdings had success in previous SPACs
- Investors have growing interest in SPACs making this IPO great timing.
- The SPAC’s size will
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