Thread: SPACs: GLEO

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  1. #1
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    SPACs: GLEO

    Anybody mess around with SPACs? I put a little bit into Silverspike Acquisition as a trial and ended up with a 150% return with a little patience. I've had my eye on GLEO, but I don't have much knowledge about SPACs.

    This is from their website.

    "Galileo Acquisition Corp. (NYSE: GLEO.U, GLEO and GLEO WS) is a newly organized blank check company, (known also as a Special Purpose Acquisition Corporation or “SPAC”), incorporated as a Cayman Islands exempted company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses, which we refer to as our initial business combination. On October 22, 2019, we closed our initial public offering of 13,800,000 units, including the exercise in full of the underwriter’s over-allotment option to purchase up to an additional 1,800,000 units. The offering was priced at $10.00 per unit, resulting in gross proceeds of $138,000,000."



    The price pretty much stays around $10 +/- $.50 or so. I've considered putting 10k or so into something like this and wait for acquisition news, seems almost too easy. Surely somebody on here has had the same idea or has acted on it. How has it ended up? I feel like the only way you can lose is if they picked an extremely poor acquisition, but I would imagine they are very selective in the process.

  2. Stocks/Investments Moderator boneil's Avatar
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    #2
    I struggle with the ease of spacs also. It's too easy to make money and there's a floor on price. As long as you don't buy something that is over hyped before the target announcement, there isn't much risk. But I don't hold long after target announcement. So far the only risk I have seen is time. Your money is just sitting there for up to 2 years and could get extended. Now if you hold or buy after announcement then you have the same risk as any speculative stock. Just look at NKLA.

    My first spac was SHLL became HYLN, then IPOB became OPEN. I currently own PSTH, BTAQ, PDAC, and I just started buying units of CPUH. I have kept it small for the first several spacs I bought, all under 1K because I don't trust it, and they moved before I could buy more. I feel like I'm missing something, a risk that I'm missing. CPUH I'm going bigger, I'm getting the units and I'll end up with shares and warants after the split.

    Whats the story with GLEO? Why did you pick them?

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    #3
    Honestly it was one that kept popping up, maybe it had more volume than others? Don't know much about them besides my little test run, or how I would really filter out which is better than the next. I suppose you could find one really geared toward "technology" or something like that, but many of them seem to have 5-6 sectors they would be willing to get into.

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    #4
    Boneil,
    What is your thoughts on CIIC? They are merging with Arrival, and supposedly have a very long list of EV bus and van orders.
    Thanks

  5. Stocks/Investments Moderator boneil's Avatar
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    #5
    Quote Originally Posted by digthemup View Post
    Boneil,
    What is your thoughts on CIIC? They are merging with Arrival, and supposedly have a very long list of EV bus and van orders.
    Thanks
    I'm always fearful of buying these spacs after an acquisition is announced. Some of them do really well and most don't. It really depends on how the deal is structured. There are many ways a long time holder can get burned.

  6. Member bigbitef11's Avatar
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    #6
    I bought ACIC this week after Ark Q automation fund got in. Its market cap was below the 1B of the contract there IPO company Archer just was awarded and below the 1B in proceeds the IPO was estimated to return. I figure they won't have to pay taxes on there plan to develop an electric aircraft and it would be hard to burn that much cash in 2 years, which is when they plan on having a aircraft ready to go. Obviously I have more research to do and it sounds like there will be a conference next week where there's and Uber's aircraft plans will be announced.
    To fish or not to fish?
    What stupid question.