2022 has become a risk off environment with SPACs largely underperforming but that doesn’t mean there isn’t value currently with some major mergers underway, Here is my top 3 picks to watch and why.
NASDAQ: GGPI Gores Guggenheim ( Polestar EV Automaker Merger )
If you missed the lucid SPAC merger which is still up over 100% since, you still have time for the Polestar EV merger. The SPAC merger with NASDAQ: GGPI expected in early 2022, will likely drive in ESG rule based funds looking for pure EV investments that are not trading at such high values. Currently GGPI trades for $12 a share with a base unit price around $9.75 The current market cap is $1.2 billion.
- Has 400Km + range, performance of 0-60 in 4.45s and build quality has been marvelled by the YouTube community who have torn the car from top to bottom likes Sandy Munro
- Production and demand with an Austen Texas factory on its way the company plans to produce 300,000 EVs a year with just under 30,000 delivered in 2021.
NASDAQ: DWAC Digital World Acquisition Corp ( Donald Trumps Social Media Platform )
Former President Donald Trump’s social media venture Trump Media & Technology Group has become a living meme since deciding to compete with global media giants that banned him a short time ago, though I am not interested in buying the SPAC it will be fun to watch none the less.
- The stock price NASDAQ: DWAC has plunged 50% since Donald Trump’s social media app has delays in the launch along with delays in the merger do to SEC investigations.
- In September 2021, DWAC conducted its IPO by selling 30 million units (shares plus warrants) to 11 institutional investors, as well as the founder, at $10 per unit, raising around $300 million with a current value of $1.8b with a share price of $49
NYSE: HUGS USHG Acquisition Corp ( Panera Bread Possible Merger )
USHG Acquisition is a SPAC chaired by Shake Shack (NYSE:SHAK) co-founder Danny Meyer. In a complex deal, Panera Brands (parent company of Panera Bread, Caribou Coffee and Einstein Bros. Bagels) will go public, then merge with this blank-check company, Panera has been private since JAB Holding bought it for $7.5 billion in 2017.
- Nearly 4,000 locations across 10 countries make up Panera Brands, there were 2,120 Panera Bread bakery-cafes in 48 US states and Ontario operating under the Panera Bread or St. Louis Bread Co. names. Caribou Coffee operates 713 Caribou Coffee stores in 10 countries. Einstein Bros Bagels, which consists of Einstein Bros Bagels, Bruegger’s Bagels, Noah’s New York Bagels and Manhattan Bagel, operates more than 1,000 company-owned and licensed units in the United States.
- closing of its initial public offering of 28,750,000 units, which included the full exercise of the underwriters’ over-allotment option, at a price of $10.00 per unit, resulting in gross proceeds of $287,500,000. The units began trading on the New York Stock Exchange (“NYSE”) under the ticker symbol “HUGSU” the date of the merger is still unknown but anticipated 2022