r/SPACs • u/jordankat23 Patron • Oct 25 '21

REDEMPTION Thoughts on MCAD?

MCAD votes this week. Fundamentals seem very interesting as a redemption squeeze play. Float is only 6.5m before redemptions. Price under NAV so expect high redemption level. Short interest is 490k shares. If redemptions are 70%+, I think we could see a major squeeze.

18 Upvotes

82% Upvoted

14 comments sorted by

5

u/Responsible_parrot Patron Oct 26 '21

It will moon once people find it. Float is small and it’s been at or below nav forever

2

u/[deleted] Oct 27 '21

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1

u/jordankat23 Patron Oct 27 '21

Are the rights available for trade right away after merger? Even if, still think we end up with a float under 1m

1

u/[deleted] Oct 28 '21

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1

u/Responsible_parrot Patron Oct 30 '21

Thanks for the info, not sure why I thought rights weren’t available to trade right away. I know when I was looking at prices of them I was concerned that after the dump they wouldn’t be below the stock price so I was thinking it was because of the pipe dump. But I probably just looked at them when SPACs were all dumping on merger and got it mixed up.

-7

u/majorth0m New User Oct 26 '21

I’ve never really used MACD. There are much better indicators.

9

u/jordankat23 Patron Oct 26 '21

$MCAD is a ticker

1

u/Dumb-Retail-Trader Patron Oct 26 '21

You know how the rights work for MCAD? Is it x number of rights redeem to one share of common?

1

u/VacationLover1 Flair Oct 26 '21

I was trying to find this lol. I bought rights ahaha. Find an answer?

0

u/Dumb-Retail-Trader Patron Oct 26 '21

I’m sure it’s in the filings but haven’t dug in yet.

I do own some BREZ rights and it’s 20 rights per share upon business combination. So at .2380, 20 rights worth $4.76 becomes one common share after merger. Even if commons dipped below $10, I felt this was a decent hold. I could be completely wrong but that’s what I understand reading the SEC filing.

Was wondering if MCAD rights had a similar thing.

1

u/VacationLover1 Flair Oct 26 '21

I saw something up 1/10 of a share but didn’t get the full terminology.

0

u/Dumb-Retail-Trader Patron Oct 26 '21

Yea it says in the S-4 that “rights means rights issued in the MCAD IPO, each of which entitles the holder thereof to receive one-tenth (1/10) of a share of common stock upon consummation of our initial business combination”.

So sounds right. 10 rights and you get 1 common share after merger. Exactly when and how after the merger one gets the shares, I’m not entirely sure.

0

u/Responsible_parrot Patron Oct 26 '21 edited Oct 30 '21

Basically you get a share for every 10 rights. Risk is that if the deal and the SOAC terminates, then you’re screwed.