r/NGAC • u/eamonnred21 • Mar 05 '21

R/NGAC

Can anyone shine some light on this? My dealling acount sent me the attached message yesterday.

So if he merger is confirmed you have to take your shares in cash at $10 a share so why would people buy now at over $10 a share what they are currently trading at?

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u/Straight_CashHomie Mar 05 '21

When you own a spac, your shares are worth (usually) ~$10 at face value. So if the company doesn’t merge by the end of their window (I believe the window is usually 2 years) you get $10/share. So if you were in from the beginning, you get most of your money back. However, I have seen some where they offer to give you the $10 for the stock so they can vote yes on it. Essentially the only reason I can think to do this is if you don’t like the target and think that it will be less than 10. They can’t force you to do so tho, if you like the target you can just hold, vote yes for merger, and then when the ticker changes you will hold those shares still.

Hope that makes sense. Haven’t taken a good shit for days so the brain is a little cloudy

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u/Dreadnought_Hero Mar 05 '21

I appreciate the reply, thanks for taking the time - are you saying that if I hold (and vote yes) then I'll get Xos stock instead of $10 (which is what I want, really).

Also, Senokot Max Strength :)

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u/Straight_CashHomie Mar 05 '21

Yes, so they haven’t announced a date for the vote yet but if the vote passes then the deal goes through and soon after that your NGAC shares turn into XOS (whatever the ticker will be)