On July 12, Churchill Capital III agreed to merge with MultiPlan, a large software provider for health insurance companies. However, a company presentation says that the SPAC holders will own just 21% of the company’s shares. Moreover, none of these companies are profitable yet, even on an EBITDA basis. In most cases, they obtain well over 80%-90% of the total shares. FinTech Acquisition Corp. III (NASDAQ:FTAC) has a beta value of 0 and has seen 2,407,524 shares traded in the recent trading session. Tesla (NASDAQ:TSLA), for example, trades at 10.8 times its historical sales. It now has 27,000 orders, representing $1.4 billion of potential revenue, to make its electric Endurance pickup truck. DiamondPeak Holdings has risen briskly to $12.25 from its $10 IPO price earlier this year. The deal ends up raising $675 million for Lordstown and it will be conducted at an enterprise value of $1.6 billion. Clever Leaves says it can make cannabis at just 20 cents per gram, or 5% to 10% of the cost in Canada. This puts Cleaver Leaves’ pro-forma market cap at $334.5 million, using today’s price of $10.17 for SAMA stock. But a related slide presentation says the deal is at pro-forma value of $1.9 billion. But it is potentially worth $13.80 to $14.70, based on the Paya presentation. As a note, it appears that the company has not chosen a post-merger ticker for CCXX. Therefore, that implies that the post-merger market cap is now $2.04 billion at the current price of $12.25. Paya is well suited for the huge expected growth in internet sales by retailers. The bottom line is that the public shareholders will own just 31% of the combined company. The stock could easily double or triple by 2023, possibly much more than that. However, the target company shareholders end up with most of the shares. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. In addition, there will be $50 million from other large co-investors, and FTAC itself has $357 million. Here is why. Some are at 28 times. After all costs and debt repayments, the final amount that Lordstown receives is $675 million, including $280 million that DiamondPeak Holdings already has from its IPO. The deal is expected to close in Q4, and once the reverse merger is final, the new symbol for Lordstown Motors will change to RIDE. FTAC stock was bought by a variety of institutional investors in the last quarter, including Engle Capital Management L.P., Polar Asset Management Partners Inc., Parian Global Management LP, BlackRock … This low level of public ownership tends to push up SPACs. None of its competitors are public. First, the company’s slide presentation shows on page 22 that it expects by 2022 to have $140 million in revenue and $47 million in EBITDA. It is now either 5.6 times or 8.37 times. In a slide presentation, Paya says it has the highest proportion, 85% of its total, of “card not present” (CNP) transaction volume in the industry. That is its key selling point, as it drives its profit advantage, selling its product throughout the world. The agreed-upon transaction, which should close sometime in Q4, will include a $200 million capital raise called a private investment in public equity (PIPE). Therefore, it is considered a “reverse” merger. Termination . Schultze Special Purpose Acquisition Corp agreed on July 25 to merge with Clever Leaves, a Canadian cannabis company. On Aug. 1, DiamondPeak Holdings agreed to merge with Lordstown Motors, an electric truck maker. Article printed from InvestorPlace Media, https://investorplace.com/2020/08/upcoming-spacs-merger-companies-worthy-attention/. Clever Leaves makes all its cannabis very cheaply in facilities in Colombia. Therefore, this SPAC looks to be at least 40% undervalued. Nov. 25, 2020, 7 Growth Stocks to Buy as We Head Into 2021, 6 Big-Cap Energy Stocks to Avoid Heading Into 2021, 7 Electric Vehicle Stocks That Could Be Your Joyride into 2021. Therefore, I believe that DPHC stock will rise at least 50% to 100% over the next year or so. On a forward basis, this is about 18 times to 20 times. That means that SAMA stock is very cheap at today’s price. Since then, FTAC stock has increased by 0.0% and is now trading at $11.37. On Aug. 3, FTAC agreed to merge with Paya, an Atlanta-based payments company with $30 billion of transactions. Copyright © Share your opinion and gain insight from other stock traders and investors. If the $1.9 billion EV number applies, the present valuation is almost 24% higher at $2.35 billion. Barron’s says this will be the largest U.S. SPAC deal ever when the reverse merger closes. This implies that the stock could rise 38% to 47%. quotes delayed at least 15 minutes, all others at least 20 minutes. Therefore, since SPAQ stock has risen, the new EV-sales ratio is 0.76 times. The potential for huge upside profits, once the reverse merger goes into effect and the stock symbol changes, is very high. Fisker will make an electric SUV in 2022. The deal will have an implied enterprise value of $1.3 billion. But its public peers trade on average at 26.2 times. FTAC Olympus Acquisition Corp. operates as a blank check company. Moreover, it gets to control the cash that the SPAC raised in its IPO. For example, $334.5 million divided by $140 million in revenue implies the ratio is just 2.4 times. FinTech Acquisition III does not have significant operations. Thereafter, the existing SPAC stock symbol will change into the symbol for the merged company. According to Barron’s, Fisker expects to make 225,000 electric SUVs a year by 2025. But in these SPAC reverse mergers, the target company ends up in control of most of the shares, and the board. The sponsor would normally control the shares and control the company’s board and management after the merger. But if we assume a $2.9 valuation, after the recent stock price increase the ratio is 1.2 times. Source: Eric Broder Van Dyke / Shutterstock.com, 5 Pre-Merger SPACs Worthy of Your Attention, Paya is controlled by a large private equity fund, ends up raising $675 million for Lordstown, Fisker expects to make 225,000 electric SUVs, 7 Outdated Tech Stocks to Sell Before It’s Too Late, Louis Navellier and the InvestorPlace Research Staff, Don’t Chase CIIG Merger in the EV Stock Buying Frenzy, Matt McCall and the InvestorPlace Research Staff, What Did the Stock Market Do? Importantly, DPHC says there will be no additional capital requirements. Therefore the new company will have $607 million, before transaction expenses. This implies its valuation is just 2 times or 3 times sales. Therefore, CCXX stock trades at a pro-forma ratio of 13.6 times now. General Motors (NYSE:GM) will invest $75 million of that $500 million. View which stocks have been most impacted by the election. The reason is that the SPAC stock — the sponsor — has already had its IPO. The company, currently valued at $493.36 Million, closed the recent trade at $10.99 per share which meant it gained $0.79 on the day or 7.75% during that session.