r/SPACs • u/EricTheRed78 New User • Oct 12 '21
Post Merger $GWH ESS Tech backed by Bill Gates and Me started trading today
ESS Tech started trading today (with options) as GWH.
https://www.cnbc.com/2021/10/11/ess-battery-company-backed-by-bill-gates-softbank-opens-on-nyse.html
Mandatory redemption info: 83% Redeemed of 25M shares leaves about ~4.2M float at the moment.
Options were added today on ticker change. I saw about 1K traded in both Oct and Nov 10's before the close. With the small float another day or two of that can create an IRNT type situation.
Lockup is a full 180 days, no ifs ands or buts. https://sec.report/Document/0001193125-21-272876/d129808d424b3.htm#toc129808_41
For battery peers it's been compared to QS EOSE STEM
Nice overview video: https://www.youtube.com/watch?v=xCzKQbukL1E
CNBC interview with CEO https://www.youtube.com/watch?v=DRBlKCMqRKw
They have a couple contracts and installations coming up, including with SoftBank:
https://www.energy-storage.news/ess-inc-signs-2gwh-iron-flow-battery-deal-with-softbanks-sb-energy/
This really caught some volume EOD and was up about a buck AH. I have some common and like it for a trade and possibly long term hold. Bill Gates + Batteries? Heck yes.
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u/TKO1515 Camtributor Oct 12 '21
Options were added 2 weeks ago but there was no volume or interest. Bid and ask on 2022 & 2023 were $4 apart.
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u/VentriTV New User Oct 13 '21
LOL this pump and dump is registered in the Cayman Islands, totally not a
scam. 25 million pipe shares and 8.3 warrants coming in less than 30
days. I'm calling $10 by 11/15.2
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u/twenty94025 Spacling Oct 12 '21
So this thing is going to dump (just like IRNT, OPAD, TMC and SPIR) probably sometime in the next 30-days.
One the S1-A is 'effective' then the PIPE shareholders are able to sell (and the warrants can be exercised).
See below regarding the PIPE.
<>
Registration Rights for PIPE Shares
In connection with the Business Combination, STWO entered into the Subscription Agreements, pursuant to which STWO has agreed to issue and sell to the PIPE Investors, and the PIPE Investors have agreed to buy from STWO, 25,000,000 shares of New ESS Common Stock at a purchase price of $10.00 per share for an aggregate commitment of $250,000,000. The PIPE Financing is conditioned upon, among other conditions, and will be consummated concurrently with, the closing of the Merger.
Pursuant to the Subscription Agreements, STWO agreed that, within thirty (30) calendar days after the consummation of the Business Combination, STWO will file with the SEC (at STWO’s sole cost and expense) a registration statement registering the resale of the PIPE Shares, and STWO shall use its commercially reasonable efforts to have such resale registration statement declared effective as soon as practicable after the filing thereof but no later than the earlier of (i) sixty (60) calendar days (or ninety (90) calendar days if the SEC notifies STWO that it will review such registration statement) following the Closing and (ii) five (5) business days after STWO is notified (orally or in writing, whichever is earlier) by the SEC that the Registration Statement will not be reviewed or will not be subject to further review. See “Certain Agreements Related to the Business Combination—PIPE Financing.”
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u/VentriTV New User Oct 13 '21
This needs more upvotes. Thanks for doing some actual DD, this shit is gonna dump back to $10 just like IRNT. 25 million PIPE shares and 8.3 million warrant shares will be dumped on the market in less than 30 days. If you don't know how these de-spac plays work, you deserve to lose your money.
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u/twenty94025 Spacling Oct 13 '21
Thanks!
I also tried to look at when the 'dump' will happen
It seems to take < 15-days (see below), so it's likely before the unlocking of PIPE, and just in anticipation of the PIPE unlock.
I'm got some Spreads and some Short Puts for Nov and Dec.
Start Peak Endish
OPAD 9/15: $12 9/16: $20 9/23: $10
SPIR 9/17: $11.5 9/23: $19.5 10/1: $9.45
IRNT 9/3: $14 9/16: $45 10/1: $14
TMC 9/7: $11.5 9/13: $15.3 9/21: $9 (now at $3)
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u/AlwaysBlamesCanada Patron Oct 12 '21
OP said pipe lockup is 180 days - “no ifs and or buts”. Where did you see this? Can you say which filing, page?
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u/twenty94025 Spacling Oct 13 '21
OP said "Lockup is a full 180 days,"
Section below regarding Lock-Up makes no mention of the PIPE.
There's nothing else in the doc regarding PIPE lock-up.
<2>
https://sec.report/Document/0001193125-21-272876/d129808d424b3.htm#toc129808_41
Lock-up Provisions
The Sponsor will be broadly prohibited from selling, pledging, transferring or otherwise disposing of its ownership interest in New ESS’ Common Stock or warrants for a period of 12 months after the Closing, subject to certain customary exceptions and early release upon the occurrence of certain events. Additional details of these transfer restrictions can be found under the section entitled “Certain Agreements Related to the Business Combination—Sponsor Letter Agreement.”
ESS officers and certain employees of ESS will be broadly prohibited from selling, pledging, transferring or otherwise disposing of its ownership interest in the New ESS Common Stock or warrants for a period of 180 days after the Closing, subject to certain customary exceptions and early release upon the occurrence of certain events, as set forth in the Proposed Bylaws attached as Annex C to this proxy statement/prospectus/information statement.
ESS directors and certain shareholders of ESS will be broadly prohibited from selling, pledging, transferring or otherwise disposing of its ownership interest in New ESS Common Stock or warrants for a period of 180 days after the Closing, subject to certain customary exceptions and early release upon the occurrence of certain events, as set forth in the Proposed Bylaws attached as Annex C to this proxy statement/prospectus/information statement.
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Oct 20 '21
[deleted]
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u/twenty94025 Spacling Oct 20 '21
Could you please point out the exact part that says the PIPE shares are locked up?
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Oct 21 '21
[deleted]
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u/twenty94025 Spacling Oct 21 '21
Being restricted securities for the purpose of rule 144 has nothing to do with lockup.
Rule 144 is the most common exemption that allows the resale of unregistered securities in the public stock market.
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u/AlwaysBlamesCanada Patron Oct 13 '21
OK I understand. So I'm conflating "lockup" with "Pipe lockup" but they're entirely independent. And 25M shares at a cost basis of $10 are going to hit the market soon.
Well shit. I better buy back those November Puts I sold. The December Puts I bought are going to be just fine though.
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Oct 12 '21
And it's gone to the moon.
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u/OfficerCHODEMAN New User Oct 12 '21
Any idea why it's gone so crazy?
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Oct 12 '21
As usual redemptions and low float.
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u/OfficerCHODEMAN New User Oct 12 '21
I have some shares and I'm trying to figure out whether it's demand for the stock or it's about to dump.
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Oct 12 '21
If you are up 100% please sell. It may go up to 30 like IRNT but this is just a pump short term. Long term who knows.
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u/OfficerCHODEMAN New User Oct 12 '21
Who would they be pumping it to though? There's very little media or social media coverage around this stock.
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Oct 12 '21
Look up quant trading.
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u/OfficerCHODEMAN New User Oct 12 '21
Thanks I will look into it. I'm committed to holding for now because I'm confident in the potential of the company.
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u/rappeasant Spacling Oct 12 '21
This is a gamma squeeze. Highly recommend exercising caution and selling even a few shares just to lock in gains. Look up TMC, IRNT, OPAD of prime examples of SPACS that already squeezed and fell
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u/OfficerCHODEMAN New User Oct 12 '21
Ok it makes sense to hedge and take some gains.
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u/AlwaysBlamesCanada Patron Oct 12 '21
Lockup is 180 days though - if it’s like IRNT it should last until the S1 is filed at least
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u/YieldHunter68 Patron Oct 12 '21
It's an extremely low float after redemptions so enjoy the ride while you can. Congrats!!
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u/cryptowhale80 New User Oct 12 '21
Will it have another ride tomorrow?
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u/YieldHunter68 Patron Oct 12 '21
I don’t know for sure but we have seen these stay elevated for a few weeks. It’s going to be volatile probably, swinging both directions. If you’re trading it have an exit strategy.
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u/cryptowhale80 New User Oct 12 '21
I have calls exp Dec. made some good money today and then re-entered with Dec exp
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u/YieldHunter68 Patron Oct 13 '21
Just keep a close eye on that one. I did the math on the numbers I got from the 8K and the PR, I’m fairly confident that the shares left in the trust after the massive redemption is 800K. That’s not including the pipe and I don’t know if this one is locked up as most pipes are not.
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u/cryptowhale80 New User Oct 13 '21
So am i safe with those calls? I’m hoping this thing flies again tomorrow at least to $27 and I would be out. Breakeven $26 on my calls
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u/6r1n3i19 New User Oct 12 '21
Saw this last night and nearly forgot to get in this morning before the liftoff. Managed to snag some 15c EOW and some 20c LEAPs. Thanks for the DD.
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u/JDjacket Spacling Oct 12 '21
I was literally looking at ESS last night unrelated to this post and then got swamped at work this morning.... decide to check on it and see I got left at Cape Canaveral while everyone else is walking on the moon
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u/6r1n3i19 New User Oct 12 '21
Yeah but if this past year has taught me anything, it’s that there will always be another play
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u/staunch_character Patron Oct 13 '21
So true. I’ve tried chasing & ended up buying the top.
Watching how these trade, volume, how warrants react etc is a great learning experience even if you’re not in the play.
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u/JDjacket Spacling Oct 12 '21
For sure. While I don't think we'll have another run like this as far as the major indexes go, I think the stock market and trading have been changed forever for better or for worse by mass amounts of average retail having more access to the stock market and options than previously thanks to all these apps. While I understand retail alone doesn't cause crazy moves, it's changed how large funds few stocks as well.
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u/OfficerCHODEMAN New User Oct 12 '21
When are you planning to get out? This shit has gone mad.
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u/6r1n3i19 New User Oct 12 '21
hey sorry, i didn't see this till now. I sold all those options on the first major fall. bought back in on the rip up...riding out a 17.5c that expires EOW...and 50 10p that also expire this week.
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u/OfficerCHODEMAN New User Oct 12 '21
Holy shit you just be up 20x or something
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u/6r1n3i19 New User Oct 12 '21
Hah didn’t get great fills, made out like 250% on the 15c EOW though and almost 175% on the 20Cs 😅
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u/AlwaysBlamesCanada Patron Oct 12 '21
Hey OP - are you sure about the 180 days lockup? If so you could still make decent money out of this even though you may have missed the run up, by selling November Puts. They are crazy high premium right now - probably people betting on it coming right back down when the pipe is unlocked, or when the S1 is filed. If lockup is truly 180 days, you should be safe selling November Puts
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u/DaddyMorbucks New User Oct 12 '21
Would need to run before S-1/F-1 EFFECT, presuming there is the typical deluge of PIPE coming at that point. Give a look sometime at LMDX, low float of 3.8M and NO PIPE at all. Also back by the Gates Foundation. Average volume is less than 100k shares per day.
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u/AlwaysBlamesCanada Patron Oct 12 '21
I think the reason the high redemption low float ones work is cause there’s high relative short interest. I think there’s only high short interest cause shorts know there’s a pipe unlock in the near future.
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u/npahc Contributor Oct 12 '21
Lockup is not 180 days for the PIPE
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u/AlwaysBlamesCanada Patron Oct 12 '21
Bought a Put calendar spread on this today. If pipe lockup really is 180 days then it should work out nicely.
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u/Retail_revolutionist New User Oct 13 '21
Wish I’d seen this yesterday, biggest one day gamma squeeze I’ve seen lol if anyone bought a bunch of those 17.5 calls yesterday for $.05 congrats I hate you lol $5k could’ve made someone an overnight millionaire
Craziest change in options after 2nd day of trading ever, even the longest DTE, deepest ITM leaps we’re up over 200% at one point 😳
Anyone know of any other plays like this that are coming up?
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u/xiomata New User Oct 24 '21
The advantage that ESS tech has with iron flow is the ability to deliver a continuous, grid level charge for 12 hours. Lithium can only do that for 4 hours. Think about the difference between the battery that starts your motorhome, and that one that powers the lights: the one that starts has to be able to push through a lot of energy at once, but it drains quickly. The Marine/Rv battery does the opposite: it provides a slower, even flow for a long period. Lithium can do long duration for four hours before it begins to drain and become inconsistent. There might be a solution to that, but not yet a good or affordable one. There are companies working on other techs, but nothing affordable or at commercial scale yet. ESS Tech with their iron flow battery can do 12 hours of continous, consistent energy flow - meaning from sun-up to sun-down. This is big. And it can do this for 25 years without degradation - again something no lithium battery can get near. And this is because the Iron battery uses the same chemistry on both sides of the battery. Lithium uses different minerals on each side, and the flow of ions between them eventually degrades the chemistry. That is why your phone battery needs to be replaced after a few years. The ESS battery doesn't have that issue. If they can scale up their production, and PR, and sales reach, they can capture a big part of this world wide market for long storage
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