1) $ASTS like every SPAC filed S-1 tonight to register 23M PIPE shares, 5.17M sponsor shares and 17.6M total public and private warrants. The SEC will take 30 days to review the S-1, it'll take 1-2 weeks to respond and go effective where the PIPE holders will be able to sell. Image
2) $ASTS Remember PIPE investors have invested at $10 per share. 31% of the PIPE are long-term strategic investors American Tower, Bell Canada, Cisneros, Rakuten and Vodafone. 60% are hedge funds that are a combination of arbs and long/short strategies. Image
3) $ASTS Per the subscription agreement, PIPE investors were allowed to short and "box" their positions. Given the overall state of PIPE market and how many of these funds are hurting in other situations, I think most have shorted and got flat on their positions.
4) $ASTS When the S-1 finally does go effective in 45ish days, I don't expect much selling pressure to occur. The warrants will be exercisable in 30 days but as with all SPACs no one exercises them until they are redeemed - especially given that the strike is at $11.50.
5) $ASTS Finally no new primary shares are being issued here - NO DILUTION. This is just the registration of existing shares.
6) $ASTS I forgot to add that 5.17M NPA sponsor shares are locked up for a year (vs. customary 180 days) following the close of transaction. However if the stock is above $12 for any 20 of 30 trading days at least 150 days after closing, then NPA will be able to sell 1/3.
7) $ASTS ONE MORE IMPORTANT THING, Bell Canada is a strategic investor in the PIPE that was not previously disclosed. I would assume they'll likely be an announced @AST_SpaceMobile customer in the coming weeks/months.
8) $AST Sorry need to clarify one more point - PIPE investors were restricted from shorting shares until the deal closed. Once the deal closed, they can short and box their positions.

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with anpanman

anpanman Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @spacanpanman

9 May
1/ SPAC 101: What the heck is a PIPE and why are these guys good, bad and ugly?

A thread about PIPEs and the important role they play in SPACs
2/ PIPEs are Private Investments in Public Equity. PIPEs were a recent innovation in SPACs that allowed A) sponsors to raise more capital outside of the dilutive sponsor promote, B) provide a buffer to meet deal minimum cash conditions and ...
3/ C) most importantly enable the separation of shareholder vote from redemption feature by addressing the minimum cash condition.
Read 25 tweets
7 May
1) $SKIN Primary Research Poll. Speak to at least 4 women about @HydraFacial. What % of women were aware of the @HydraFacial brand: @brentlsaunders @jimcramer
2) $SKIN Primary Research Poll: Speak to at least 4 women about @HydraFacial. How many have had a @HydraFacial facial treatment?
3) $SKIN Primary Research Poll: Speak to at least 4 women about @HydraFacial. For the women that had treatments, what's their view of the @HydraFacial service?
Read 4 tweets
21 Feb
Something an old boss told me once when I first started public investing and lost a lot of money on a position: "If you're not losing money somewhere in the portfolio, you're not taking enough risk." #spacs #spacsquad
2/ If you’re sweating every tick up or down in a position, you’re TOO BIG. #spacs #spacsquad
3/ SPAC asymmetry with $10 pre-merger floor is your best friend. A 30% move from $10 -> $13 is FAR superior than $45 -> $60. Risking $0 to make $3 way better than risking $35 to make $15. Always be cognizant of risk/reward. #spacs #spacsquad
Read 13 tweets
5 Jan
1/ $VSPR merger w/ Hydrafacial: Invest in the Leading Beauty Care Services Platform Positioned for Accretive M&A Growth and Post-COVID Reopening Demand

Thread Below @jimcramer @brentlsaunders @HydraFacial
2/ Hydrafacial offers one of the most popular facial skincare treatments across the world with an army of loyal mid and upper-class customers receiving regular treatments on a monthly basis at ~$200 / session. Image
3/ Skincare is a fast growing market (14% CAGR in US alone) with a worldwide TAM of +$200B.

Consumers have been shifting their expenditures from goods to experiences and have shown an increasing willingness to spend on high end beauty and health services. Image
Read 36 tweets
21 Dec 20
1/ $NPA merger w/ @AST_SpaceMobile: Invest in the Space Mobile Provider that Will Disrupt the Entire Wireless Industry.

A Different Perspective on What's Really at Stake. Thread Below. @jimcramer @ARKInvest @DJohnson_CPA @Mindwalletbody @SpacGuru @SpacBobby @JMacInvesting
2/ SpaceMobile ($NPA) has created the first and only patented protected, space-based cellular broadband network that can provide coverage across the entire globe.

Service is compatible with all +5B mobile phones in use today featuring 4G & 5G data speeds with low latency. Image
3/ Carriers that work with SpaceMobile will enjoy absolute and unparalleled cell coverage - a game changing advantage that will redefine the competitive landscape. Image
Read 25 tweets
13 Dec 20
$DMYD to merge w/ @GeniusSports - The Index for Sports Betting with Strong Tail Winds.

A thread.

@MarkLockeGSG @NiccoloDeMasi @spac_insider
1) Genius Sports is going public through a SPAC merger with $DMYD, which is led by @NiccoloDeMasi, the former CEO of Glu Mobile. The man has consummated +25 mergers and has a keen focus on gaming. His first SPAC, $DMYT is taking Rush Street Interactive, in the next two months.
2) Who is Genius Sports? It's one of 2 large sports data providers (duopoly) that works closely with leagues to collect and sell live game data to sportsbooks. This is incredibly important as live betting needs constantly updated stats to adjust prop bets and lines in real time. Image
Read 24 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!

:(