$SCPE — Currently 10.33.
LOI announcement went unnoticed 1/6. NAV 10.12 (can’t go below this until redemption date which is months away). Risking 1-2% for potential pop on deal announcement. Could be a total dud or a grand-slam, but trading is all about your r/r ratio and I’m taking a giant swing on this one.
The trust floor (10.12) is your friend. Copy of PR below because I’m sure many only read the headline and not the detailed description of the target company. CEO sounds confident in the deal for what it’s worth.
They have until 4/16 to close, so expecting a definitive agreement within the next few weeks. We’ve seen these non-binding letter of intents before on TTCF and GOEV. My assumption is teams do this to be able to negotiate the final deal terms without the stock being overly volatile and giving the target companies added leverage - see THCB & CCIV as examples.
Disclosure: The above references are an opinion and are for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.