‘Blank-Check’ Companies Are Hot on Wall Street. Investors Can’t Ignore Them.

By Nicholas Jasinski Jan. 17, 2020 5:14 pm ET   Note from Dudley Pierce Baker of CommonStockWarrants.com Our interest in blank check companies is simple – every blank check company (SPAC) has a stock warrant trading with a 5 year life and the clock does not begin until an acquisition/merger is completed. There are currently 67 blank check companies currently trading and in my databases. Many potentially great opportunities. ______________________________________________________________________________________________________________ Some big-name initial public offerings last year were panned for not having a profitable business. Yet more than a quarter of the offerings were of companies with no business at all—by design. These were special purpose acquisition companies, or SPACs, also known as “blank-check companies.” Their goal is to raise money from public and private investors and then identify an acquisition target and buy it, typically within two years. SPACs raised $13.6 billion in 59 IPOs last year. Should you be investing in one of these companies? The pitfalls can be numerous, and not all SPACs are created equal—but investors should not completely ignore this growing segment of the public markets. Richard Branson’s spaceship company Virgin Galactic Holdings (SPCE), fantasy-sports website DraftKings, Twinkie-maker Hostess Brands (TWNK), and restaurant chain TGI Fridays are among companies to merge with SPACs in recent years. There are currently 71 SPACs on the market seeking targets, according to data from SPACInsider, a website devoted to research analysis and data about the industry. SPACs can designate a target industry or geographic region, or go public as generalists with no specific … Continue reading

Chuck E. Cheese Will Soon Be Publicly Traded

I dare say that every parent, grandparent, aunt and uncle, everyone, has been to a Chuck E. Cheese somewhere in the world. Chuck E. Cheese will soon be completing a merger with Leo Holding Corp., a blank check company, sometimes referred to as a Special Purpose Acquisition Corporation – (SPAC) which will allow CEC to become a publicly traded company. Upon the completion of this business combination, the new name will be Chuck E Cheese Brands, Inc. and new symbols will be issued for trading. Leo issued a press release announcing that it has scheduled the extraordinary general meeting of its shareholders to approve the Business Combination for July 30, 2019. However, I caution investors, until this merger is finalized issues can still arise, and until the deal is done, the deal is not done. Leo Holding Corp. currently trades as LHC on the New York Stock Exchange as do the stock warrants which trade as LHC.WS. Soon investors will have another restaurant and entertainment company trading which might represent an attractive opportunity depending upon your personal investment objectives. My fascination and purpose in writing this article is that Leo Holding Corp. has stock warrants trading which will become stock warrants of the new company which may be of interest to many investors. Currently in our databases, there are 66 blank check companies trading and with each company there is a stock warrant trading which was issued in the initial offering of the blank check company. All of these 66 … Continue reading