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All Posts Term: SPACS
3 post(s) found
Market NewsMedia

What You Need To Know About Forbes Reverse Merger

forbes-924140_1280

The reverse merger of the Forbes magazine with Magnum Opus Acquisition Ltd is the freshest example of media companies catching SPACs. It is a lucrative deal that seeks to allow one of the oldest media publishers, Forbes, to invest further in consumer-focused products while reducing dependence on media revenue. The profit projection resulting from Forbes reverse merger is expected to go high by the end of 2021.

Why is the Reverse Merger Happening?

The next question that anyone is likely to ask themselves is why the merger is necessary. While it will be incorrect to say that the reverse merger does not have any demerits, the truth is that the advantages always outweigh the disadvantages. The typical benefit of a reverse merger that everyone knows is that it saves the private company from the complex and expensive process of becoming a public company. However, that is not all, as many other reasons make private companies choose this path. For instance, it helps in saving the taxes of a private company.

Another benefit of a reverse merger is that it does not negatively impact the competition in the market. It is rare to see the reverse merger on hold because of the negative impact of its implementation. In other words, there is more to celebrate about the merger.

What will the company look like after the Forbes Reverse Merger?

Once the merger between Forbes and Magnum Opus Acquisition Ltd is complete, you do not expect things to remain the same. It is most likely that things will change in one or the other. Although the profits may increase as projected, some disadvantages might come with the entire process. For example, the employees from both sides will be affected. Some may lose their livelihoods, and those lucky enough to survive should expect lots of things. Shifting of roles and confusion among employees is inevitable. Also, the struggle for power among employees may affect the growth and the development of the business. The great news is that this is not likely to last for an extended period before things shape stars to shape up.

Market NewsTechnology

Richard Branson Announces Virgin Orbit Reverse Merger

VirginOrbit

Richard Branson's Virgin Orbit has agreed to go public through a special purpose acquisition company (or SPAC) called NextGen Acquisition Corp II. The deal is expected to provide the company with $483 million in cash proceeds with investors, that include Boeing Co and AE Industrial partners, committing $100 million through a private investment equity placement. The deal will result in a value of $3.2 billion for the satellite launching company and will support its capital reserves until its operations begin to produce stable revenue streams which is expected to occur by 2023.

Virgin Orbit Stock

The merger is expected to close by the end of the year and will trade on the NASDAQ under the ticker name of VORB, with the company, launched in 2017, keeping its Virgin Orbit name. It follows another Branson company, Virgin Galactic Holdings Inc, which offers flights to space, going public through a SPAC deal in 2019. He recently took a flight with 5 employees of Virgin Galactic to promote the service which costs $450,000 for a seat on the flight. Branson said that the success of that deal encouraged him to make the current move and went on to say that this method of going public was less time-consuming and more efficient than going through a traditional public stock offering.

The satellite launch sector is experiencing significant growth as companies, including the Elon Musk backed Space Exploration Technologies Corp, compete to lower the cost of these missions partly by re-using launch rockets. Virgin Orbit is unique in that it uses a Boeing 747 to launch its rockets at an altitude of 35,000 feet. CEO Dan Hart has stated that the company has $300 million of contracts in the pipeline for its services with 18 launches expected to be completed in 2023 with this figure increasing subsequently. Boeing, for its part, announced its confidence in the satellite launch market and in Virgin Orbit as a provider.

SPACs

The deal demonstrates the continuing popularity of using SPACs, or blank-check companies as they are known, to go public rather than going the IPO route, with such companies raising over $129 globally in 2021 up from what was already a record $84 billion last year. In fact these types of transactions are increasingly being used to fund space ventures with Rocket Lab USA, another satellite launch company, also seeking to close a similar deal this week.

Market NewsTechnology

Apex Clearing SPACS Its Way Onto NYSE

ApexClearing

There's a new kid in town and his name is SPAC. Everywhere you go in the financial world, you hear about some kind of SPAC deal taking place. A SPAC, or Special Purpose Acquisition Corporation, is a new way of taking a company public without going through a lot of pre-listing due diligence. The idea is that you create a SPAC, which is just an empty shell whose sole purpose is to buy real companies later on, and get it listed on the stock exchange of choice. Since it is an empty suit that has no non-monetary assets or business to slow things down via rigorous scrutiny, it is easier to get a listing.

What Is A SPAC

Afterwards, the SPAC is used to "buy" an existing company that wants to go public but doesn't want to expose itself to a lot of SEC scrutiny or time-consuming delays. The two companies can also "merge". In either event, the façade of the SPAC is wound down and the new venture changes its ticker symbol to that of the targeted acquisition in a process known as a reverse merger.

Apex Clearing Reverse Merger

Case in point is the recent announcement regarding the SPAC Northern Star Investment Corporation II Apex Clearing reverse merger. The newly-merged entity will be listed as APX on the New York Stock Exchange and will bid adieu to the corporate profile of the technically senior partner in the transaction.

What this reverse merger will do is provide Apex with the public recognition that it has already earned among dedicated professionals through its quiet back office viability in the financial community. Apex has provided the lifting power for many innovative financial companies and revolutionary new techniques that have greatly broadened the ability of ordinary people to participate in the great stock market boom of the past several years.

Robinhood and Apex

Until it opened up its own platform, the now-well-known firm Robinhood used Apex as the clearinghouse for all of its financial transactions. Apex was a pioneer in both fractional share and crypto trading. A lot of entities are powered by Apex in one way or another. Firmly profitable and now about to become widely available to the general public, the brain trust behind Apex has set the company up for a regular moonshot.

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