Not a finance person, but my son helped take a company
by IAND75 (2024-03-26 15:46:50)

In reply to: Finance people: are SPACs never sketchy?  posted by ravenium

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public via a SPAC. Very legitimate. But highly speculative. Early stage company.

An investment in it when it went public may be a very good one sometime in the future, just like any other early stage company. If you want your money out now it would be a big loss.

Pricing on it is tough because it is based upon their product working technically and being adopted. If so, it could be a huge win. If not, then it could be a bust. But right now their stock price makes no sense. Their market cap is less than 2/3rds of their net liquid cash/investments. Not even considering their total net assets.

Once a company goes public via SPAC they have all the standard disclosure requirements of any public company. Truth Social’s 10-Qs and 8-Qs should be interesting reading going forward.

Interesting
by ravenium  (2024-03-28 17:13:31)     cannot delete  |  Edit  |  Return to Board  |  Ignore Poster   |   Highlight Poster  |   Cannot reply

Is it more of a way to get funding quickly? I've only been in the "traditional" model where we get rounds of VC funding.
It gets to public funding quickly with fewer constraints
by IAND75  (2024-03-28 19:35:40)     cannot delete  |  Edit  |  Return to Board  |  Ignore Poster   |   Highlight Poster  |   Cannot reply

than in a traditional IPO process. But in the end you are still a publicly traded company with all the attendant requirements. And the problems of being publicly traded if you are pre-revenue.