tuscan holdings spac

Couldn’t they sell more than 37.89 million shares to a PIPE group? In this case, the rise in THCB stock could cause problems with the final terms of the SPAC merger. If that $100 million is sold to a PIPE group, the total cash in the combined company will be about $350 million. Therefore, for all intents and purposes, there will be 65 million shares in this SPAC deal. As long as a definitive merger is announced, THCB stock will be worth at least 50% more than today. Its batteries are being used in almost 30,000 vehicles in 160 cities and 19 countries, for a total of more than 3.8 billion miles traveled, the companies said in a statement. SPACs, or blank-check companies, go public without having a business, and then have two years to acquire one or more. GE stock sinks after proposing reverse stock split, confirming $30 billion AerCap deal, The stimulus money isn’t going to be spent, Bank of America says, so here are the investment moves to make, Is your income just over the threshold for the $1,400 stimulus check? It's R&D and production capabilities span battery materials, multiple battery cell chemistries, modules and packs. Battery maker Microvast Inc. will go public via a merger with blank-check company Tuscan Holdings Corp. in a deal that values the … This could cause a number of institutional investors to balk at agreeing to the deal. The Short Answer Is No. In fact, a SPAC can take up to two years to target and buy another firm. Article printed from InvestorPlace Media, https://investorplace.com/2021/01/thcb-stock-gains-after-closing-spac-merger/. But there would have to be a new shareholder meeting to approve this increase in the authorized shares. On the date of publication, Mark R. Hake did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. The deal is expected to close in the second quarter. But the problem is almost always the SPAC merger issues the PIPE equity at $10.00 per share, the price of most SPAC IPOs. Since there will be 65 million shares outstanding, that implies that THCB is worth between $24.62 and $28.46 per share. In 2020, activist investor hedge fund manager Bill Ackman launched Pershing Square Tontine Holdings (NYSE:PSTH) as a spinoff of his hedge fund. Bloomberg reports that January 2020 was a record month for SPAC listings. First, it needs to announce a definitive agreement to merge with Microvast, a private electric vehicle (EV) battery maker based in China and Texas. Typically both parties don’t announce a merger until a definitive, or non-binding agreement to merge has been reached. Overview: Headquartered in Quincy, Florida, Trulieve Cannabis Corp. is the first medical marijuana company in the state of Florida. -1.71% I don’t think this will happen, especially since the terms will be very sensitive if the PIPE investors get to buy in at $10.00 per share. Tuscan Holdings Could See 50% Gains After Closing This EV SPAC Merger, 12 Things for Investors to Know as the Roblox IPO Starts Trading >>> READ MORE, Here’s Why QQQ Stock Should Always Be in Your Portfolio, Matt McCall and the InvestorPlace Research Staff. Moreover, to get the market cap we add back the $350 million in cash. Take a Position in Stellar Lumens Now as It Keeps Making Its Way Higher, 7 of the Top Transportation Stocks to Buy Right NowÂ, After Earnings, the Battle Over Nio Stock Is All About Valuation, Should You Buy GameStop Stock? 10 million times $7.10 per share) at the $17.10 existing profit. However, there are already 27.11 million shares issued (although they could be subject to redemption if shareholders don’t approve a merger). THCB stock will be worth this much depending on several things happening in the near future. in a deal with an implied equity valuation of $3 billion. The company was founded in 2006 in Houston, Texas, and develops batteries for commercial and specialty vehicles. All rights reserved. At the close the combined company will have a market cap of $1.11 billion and also $350 million in cash. Microvast Inc., a maker of electric vehicle battery technology, said Monday it is going public via a merger with special purpose acquisition corporation Tuscan Holdings Corp. Ciara Linnane is MarketWatch's investing- and corporate-news editor. That represents a potential gain of 44% to 66%. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. In the latest 10-Q filing by Tuscan Holdings Corp, the balance sheet indicates that this SPAC has 65 million shares outstanding. 2021 InvestorPlace Media, LLC. Let’s say that THCB agrees to issue $100 million in 10 million new shares at $10.00 per share to the PIPE investors. Why would the existing THCB stock shareholders agree to this? So why would THCB equity investors be willing to give the PIPE investors such a huge discount to the $17.10 existing price? 3.44. Assuming the issues get worked out as to the price, that would leave 65 million shares outstanding. However, in the first nine months of its creation, Ackman was still looking for a target company. They have proved to be highly popular during the pandemic. The transfer of wealth from them to the PIPE investors is too large. I estimate that Tuscan Holdings Corp (NASDAQ:THCB) will be worth at least 50% more than its present price. 1125 N. Charles St, Baltimore, MD 21201. The deal with Tuscan was announced in November. Yes, they can. Here is what that means. THCB, On average that is a gain of 55% over today’s price. The new company will have up to $822 million in cash. This enhances the total funds that Microvast will receive at the closing. SPAC Tuscan Holdings is set to merge with EV battery maker Microvast in a transaction that will value the combined entity at roughly $3 billion. However, the financial details were not disclosed then. What Will the Stock Market Do Today? On Feb. 1, Tuscan Holdings announced a business combination agreement with Microvast. Microvast has said they expect to generate over $100 million in sales this year. Tax preparers give tips to help you qualify, House passes $1.9 trillion COVID relief package, clearing it for Biden to sign. Microvast and Tuscan Holdings have been somewhat of an outlier in the world of SPACs given the extraordinary delay between their Letter of Intent (LOI) to merge and an eventual merger DA. THCB stock shot up to $17.10 as of Dec. 31, due to the preliminary non-binding agreement to merge they announced on Nov. 13. quotes delayed at least 15 minutes, all others at least 20 minutes. As a result, the enterprise value for Microvast/THCB will be $1.25 billion to $1.5 billion (i.e., 5 and 6 times $250 million). The implied market capitalization is $1.112 billion. The company has a substantial backlog that exceeds any other EV SPAC, yet it's trading at a discount to these competitors. This is based on my estimate that just 10% of existing shareholders request a redemption. The latter is a provider of battery … This is seen by multiplying today’s price by the total authorized shares of 65 million. Upon closing, the combined company will be renamed Microvast Holdings Inc. and will list on Nasdaq under the new ticker symbol "MVST." Battery maker Microvast Inc. will go public via a merger with blank-check company Tuscan Holdings Corp. in a deal that values the … Nasdaq Tuscan Holdings shares were halted premarket for the news. President Biden will sign the bill on Friday, White House press secretary Jen Psaki said. That leaves another 37.89 million shares it could sell to a PIPE investment group. Therefore, the implied EV-to-sales multiple is only three times (i.e., $760 million divided by $250 million). InvestorPlace - Stock Market News, Stock Advice & Trading Tips. PAYAW. EarlyBirdCapital, Inc. is a member of the FINRA, NQX, MSRB, and SIPC.All securities are offered through EarlyBirdCapital, Inc. Securities Investor Protection Corporation (SIPC) insures the accounts of our clients for up to $500,000 each customer, subject to limitation of $100,000 from claims for cash balances. 3 Big Stories to Watch. She is based in New York. 1125 N. Charles St, Baltimore, MD 21201. It’s likely the majority of Tuscan’s $282 million in cash will be left in the combined company. Looking at some of the recent business combinations, Tuscan Holdings is worth considering for the long-term. Their electric batteries are already installed in over 28,000 vehicles worldwide. All rights reserved. My estimate is based on how I have seen how various special purpose acquisition companies (SPAC) mergers proceed. So the pro forma market capitalization will be $1.6 billion and $1.85 billion. Mark Hake runs the Total Yield Value Guide which you can review here. Copyright © 2021 MarketWatch, Inc. All rights reserved. For example, often a SPAC merger occurs with the issuance of private equity in a private investment in public equity (PIPE) deal with a hedge fund. Trulieve is a … This company and Tesla will be the top two electric-vehicle plays by 2025, says UBS. Normally the ratio will be at least five-to-six times forecast sales. Copyright © 2021 InvestorPlace Media, LLC. Electric-vehicle battery maker Microvast said on Monday it would go public through a merger with blank-check company Tuscan Holdings Corp, in a deal that values the combined entity at roughly $3 billion. EV battery maker Microvast to go public via merger with SPAC Tuscan Holdings in deal valued at about $3 billion … Moreover, assuming all shareholders agree to this merger, or at least 90% of them, the private company Microvast will receive cash at the closing. I expect that in several years their revenue will be forecast to reach $250 million. 5.85%. This would mean that they have a $71 million instant profit (i.e. RBLX Stock IPO: When Does Roblox Go Public? This announcement of a non-binding term sheet is somewhat unusual. That gives it an implied enterprise value (EV) of just $760 million. What Is the Roblox IPO Price Range? Forget Nio and XPeng. Tuscan Holdings Could See 50% Gains After Closing This EV SPAC Merger THCB stock is primed for a post-merger bump By Mark R. Hake , CFA Jan 5, 2021, 7:23 am EST January 5, 2021 Copyright © ... Tuscan Holdings Corp. Units. Nevertheless, assuming this issue can be resolved (perhaps by issuing a smaller amount of shares at a higher price, say $15.00 to the PIPE investors), the upside for THCB stock is clear. Mitch McConnell among Republican votes to confirm Garland, Senate banking panel advances Biden picks for SEC and CFPB, The meme stock rollercoaster just reached new heights of volatility.

Chalmette Battlefield And National Cemetery, Is Buckinghamshire In Tier 4, Martha Collison Recipes, Hope Tattoo Meaning, Hand Burnished Wood, Garmin Astro 320 Review, Baltimore County Tax Sale 2020,