In the SPAC arena, the business combination announcement is the “holy grail” of the trade 90 percent of the time. We seek to set up our portfolio to capture the often-unexpected news. Prior to the open this morning, I was positioned in Legacy Acquisition Corp (LGC, LGC.WS) as part of my ongoing pursuit of combining machine learning with warrants. The list that is being provided by my application had placed the warrants at rank 3 in my constantly changing list of 10 companies to participate as component pieces in a “basket of warrants.” The following will give a brief overview of this combination and what could be an exciting opportunity for both companies. This will be worth watching as some of these announcements have led to the parabolic rise in companies which can elevate the share prices substantially and the warrants exponentially.
"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,”
Business Combination Details
Legacy Acquisition Corp. operates as a blank check company. The Company engages in share exchange, amalgamation, acquisition, share reconstruction, asset management, and other financial services. Legacy Acquisition serves customers worldwide.
Onyx is an innovative eCommerce technology company focused on creating custom infrastructure and unique user experience for niche marketplaces. We do many things differently, leveraging our people’s ideas along with the latest technology to solve real problems
“Onyx has developed a distinctive proprietary technology platform for digital commerce and fulfillment, relying on insights extracted from over 14 billion data points related to car parts, a physical footprint network comprising over 2,500 shipping locations, nearly 5,000 active brands, and machine-learning algorithms for complex fitment industries such as vehicle parts and accessories. Onyx’s proprietary fitment data and algorithms used in CARiD.com and other such verticals (such as MOTORCYCLEiD, TRUCKiD and BOATiD) compiled over the past decade, combined with its substantial investments in artificial intelligence and machine learning, provide online consumers with an enhanced user experience featuring a breadth of offerings and service levels (including search capabilities, training and learning, and provision of data to suppliers to enhance their product information), positioning it as a leader in the $400+ billion auto aftermarket industry.”
With the emphasis on the business that ONYX brings to the table, the potential to expand their supply chain and sales components with the newly infused cash as part of the combination, investors should be encouraged as the growing auto industry has had several new vehicle manufacturers enter the industry. Whether it be sales or supply chain issues, there is a good opportunity for this combination to outperform in good markets. One to watch.
