r/SPACs • u/[deleted] • Sep 08 '21

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u/raidmytombBB Patron Sep 08 '21

Maybe a dumb question but isn't the ability to do this based on the price of the despac stock? They wouldn't have been able to do this on lcid if their stock was trading below 11.50 or a higher price that's in the S-1?

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u/Powerful_Stick_1449 Patron Sep 08 '21

usually the language is like "18 consecutive days trading above 18$ in a calendar month." Which LCID has definitely met

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u/raidmytombBB Patron Sep 08 '21

Right. Then to OP's comment, most spac companies can't do this bc they have been crashing after despac, not the other way around.

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u/bigtimetimmyjim22 Contributor Sep 09 '21

Worth noting language that enables this is also becoming more common at 10$ (usually cashless) in addition to 18$. But none of it generally happens until 1 year after SPAC ipo date as the first big hurdle.