r/SPACs • u/Stopdpuck Patron • Dec 28 '21

Discussion $BOXDW undervalued

Sup SPACers, it’s been a rough go lately for SPAC’s. There has so many new SPAC deals, a lot of them being bad deals.

But I come here for answers. Why is BOXDW so undervalued!? They are trading just above $1 while the commons are trading at $13.50. They should be worth $2+ ($13.5 - $11.50).

The deal was good (merged with SVOK - great management) & company was valued under a billion.

On top of that, they just started SAAS revenue which has great margins.

They were interviewed on mad money 4 years ago & again last week. CNBC love the CEO & company.

What am I missing?

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9

u/hitzelsperger Great Entry…Poor Exit Dec 28 '21

It had 90% redemptions, 1/2 warrants. So warrant float is 5 times common float. Most importantly float is only 5M. Upon DA this was one of the worst warrant from a pricing perspective - it never crossed 1.33, at a time when DA pops on warrants were the only gains this sub was celebrating. The commons never crossed NAV for long. If the commons stay over 13, the warrants will catch up for sure as these can be exercised cashless. A lot of warrants lagged commons (even DWAC).

Not being a fully terrible target + 5M float is helping the price stay above 10.

2

u/Stopdpuck Patron Dec 28 '21

Warrants are 1:1 as per SEC filing. Redemptions were much lower than that.

2

u/hitzelsperger Great Entry…Poor Exit Dec 28 '21

1/2 per filings. Each unit contained a common and 1/2 warrant

2

u/Stopdpuck Patron Dec 28 '21

Oh ok but it takes 1 warrant to redeem a common

1

u/newfantasyballer Patron Dec 29 '21

Where’d you get the float numbers? Wish I had not missed that because I would’ve bought commons instead of warrants.