Hennessy Capital Acquisition Corp. IV is one of over 100 SPAC’s currently trading and in our stock warrants database. The shares trade on the NASDAQ under the symbol, HCAC, and the warrants as HCACW. They have seen explosive activity and growth over the last few months and at the time of this writing are continuing their parabolic upward trend with an above average volume and liquidity.
Hennessy Capital Acquisition Corp. IV went public via an Initial Public Offering, (IPO) for $261 million on February 22, 2019, with the intention of completing a merger within 18 months. “…If we are unable to complete our initial business combination within 18 months from the closing of this offering, we will redeem 100% of the public shares for cash, subject to applicable law and certain conditions as further described herein….”
One of the magic ingredients or ‘secret sauce’ of investing in the SPAC’s is to identify the promoters, sponsors, and management team as to their intended merger partner. This information is made available in the original prospectus of each company and can serve to lead investors to isolate or discover the investment sector in which the company is pursuing a merger. Sometimes the intent is provided and the industry classification is similar to that of an already operating company, however, most times identifying a business sector is vague. In a wide variety of cases, the company disclosure leaves the entity undeclared to broadly explore potential M&A in all industries and investment sectors that best utilize the skills of the management team of the SPAC.
A Special Purpose Acquisition Company (SPAC) is defined as a company with no commercial operations that is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring an existing company. Also known as “blank check companies,”
– Investopedia
Since the end of the summer 2020, the warrants have remained close to, if not at, the top of our leader-board and in the Top 5 Most Active warrants (available on the home page of Common Stock Warrants to non-subscribers), and continues to trade well over 1,000,000 warrants a day. As with the warrants in this sector that have preceded it, we are reminded of the Nikola Motors story that shares the business combination with an SPAC and has continued to grow at a rapid pace. Investors should realize that the stock warrants in these companies provide an exponentially higher upside leverage than the common shares and are thus, a major attraction for traders as well as long term investors.
The continued interest in HCAC and the HCACW warrants remains high because of the expectation from investors of the completion of its pending merger with Canoo Inc. which could lead to a continued upward trajectory with no end in sight in the exciting field of Electric Vehicles.
LOS ANGELES, Aug. 18, 2020 /PRNewswire
Canoo Holdings Ltd. (“Canoo”), a company developing breakthrough electric vehicles (EV) from the ground up, and Hennessy Capital Acquisition Corp. IV (“HCAC”) (NASDAQ: HCAC), a special purpose acquisition company, today announced they have entered into a definitive agreement for a business combination that would result in Canoo becoming a publicly listed company. Upon closing of the transaction, the combined operating company will be named Canoo Inc. and will continue to be listed on the NASDAQ Stock Market under the ticker symbol “CNOO.”
Business Combination Details
Canoo is a high-growth EV company, distinguished by its experienced team with an emphasis on engineering expertise and achievement. Canoo has designed the world’s flattest modular “skateboard” platform that allows it to re-imagine EV design, maximize usable interior space and support a wide range of vehicle applications.
Hennessy Capital Acquisition Corp. IV operates as a special purpose entity. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, and similar business combination with one and more businesses.
Frequently the merger process can take 3 months or longer, to finalize once a deal has been announced. In this case, Hennessy Capital Acquisition Corp IV, anticipates the closing will be in the 4th quarter of 2020. Upon completion of the merger, the expiration date of the warrant is reset to 5 years from the date of the closing. Our subscribers will have access to those changes, will you?
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Dudley Baker
Founder/Editor
Common Stock Warrants
