Christopher, the reason for the discount is because they can not be exercised currently. The risk that the price of the common falls before they are able to be exercised is being priced in by the market. They become exercisable 30 days after the business combination closes, given that there is an effective registration statement filed by the company. The gap is so large in this instance because BRPA is merging with a biotech company whos success is largely dependent on the results from the RLF-100 clinical trials expected late Jan/ early Feb. Hope this helps.
I can't make recommendations - but nobody expected the EUA from the 24 control patients. EUA still in play following the topline data - now expected at end of Jan/early Feb. As always, know the risks when investing in a biotech company!
Great thesis!
Mr. SPAC Attack: Could you propose a reason why the BRPA warrants are trading so far below what seems to to be their fair value vis a vis the common?
Shouldn't those warrants be trading around 28, or around 12 if there is a cashless redemption clause?
Thanks
Christopher, the reason for the discount is because they can not be exercised currently. The risk that the price of the common falls before they are able to be exercised is being priced in by the market. They become exercisable 30 days after the business combination closes, given that there is an effective registration statement filed by the company. The gap is so large in this instance because BRPA is merging with a biotech company whos success is largely dependent on the results from the RLF-100 clinical trials expected late Jan/ early Feb. Hope this helps.
Note that BRPA has some NASDAQ paperwork to clean up. Failed to meet NASDAQ continued listing requirements.
that happens with smaller SPACs before they find a target. Not a concern now
with no EUA in the press release today will you continue to recommend?
I can't make recommendations - but nobody expected the EUA from the 24 control patients. EUA still in play following the topline data - now expected at end of Jan/early Feb. As always, know the risks when investing in a biotech company!