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I finally got around to checking the Spire price paid vs my calcs.
I had our price as being likely to be around $9.12, and according to the RNS, it was 1,105,520 shares for $10.2M which is $9.2264/ share - likely to be very slightly different as the 10.2M will be rounded. As I type, Spire is $12.71 - a measly 38% return in about a month. Long may our managers make that sort of return. I'll do my Arqit estimate in a minute.
Interesting. So cheaper than buying the original SPAC, maybe the market hasn't caught on to the value yet. Good for SSIT investers.
Geeky stuff I do to warm up for real work:
according to the RNS, NYSE:SPIR started trading on 17/8 (I though the SPAC acquisition happened on 16/9 but calcs based on that will be notes).
SSIT will pay SSVC the 5 day average for the holding in Spire.
From Google Finance, the closing prices ($) and volumes (vols in '000) were:
16-Aug 9.93 524
17-Aug 9.41 256
18-Aug 9.9 186
19-Aug 8.85 149
20-Aug 9.05 122
23-Aug 8.35 225
On a strict average, 17-23 August closing is $9.11/ share (16-20 is $9.43), on a volume weighted average 17-23 Aug is $9.12/ share (16-20 is $9.60) and closing price last night was $9.72. I haven't got any data (or inclination) to look at the volume weighted average for each day's trading, but will be interested to see how close these #'s are to what is disclosed in the RNS at the end of the month. Looks like an OK deal for the IT so far (yay us!).
I'll be interested to see what price the IT actually pays for these shares as barring a slight spike on the first day of trading, the share (NYSE:NSH - it will become NYSE:SPIR but yahoo and google finance haven't caught up yet) has taken a bit of a pounding (down from about $10 a share pre-merger to $8.71 as I type). First day of combined trading was the 16th, so it should be an average of this week's prices by my reckoning.
Yes - Spire was a retained asset too. Here's the complete list but the formatting might be nasty:
Table 4 below summarises the four investments that comprise the Retained Assets which had an aggregate valuation of £49.9 million as at 31 May 2021 as determined by the AIFM.
Legal Name Transaction Percentage shareholding in portfolio company 31 May '21 Valuation £
Spire SPAC announced 01.03.21 0.8% 4,909
Arqit Limited SPAC announced 12.5.21 5.5% 27,859
D-Orbit S.p.A Transaction underway N/A* 7,362
Iceye Oy Pre IPO transaction underway N/A* 9,755
49,886
So the VC had 0.8% of Spire, valued at c.$4.9M. The IT will acquire 100% of that 0.8% as long as it then doesn't make up more than 15% of the IT's NAV. Same pricing deal as with Arqit - 5 day average share price. Let's hope it pops on day 6 :)
Rich, I'm guessing a similar situation for Spire Global, the vc investors get the 'ipo' uplift the IT investors get to buy at the listed stock price? This seems fair as we didn't carry the risk of the initial investment.
Good point indeed. I should have read more carefully. Many thanks
Not necessarily that great - Arqit is one of the retained assets not part of the seed portfolio. The Arqit holding is still in the VC part of Seraphim and will be revalued and sold from the VC fund to the IT post-listing but before 31/12/21, so it won't be at a bargain price. See pages 44 - 46 of the prospectus.
"In the event that there is a successful corporate action by 20 December 2021 the Company will
acquire the relevant interests at a price per share: (i) where the corporate action involves a listing
following an acquisition, equal to the volume weighted average price per share for the interests
owned by the Seraphim Space Fund for the five days trading from and including the date of the
relevant listing; and (ii) where the corporate action involves a meaningful fundraise, at the price per
share implied by the price at which that fundraise was undertaken."
So we (the Trust) will pay the VC the average share price over the 1st 5 days of trading. The VC gets all the benefits of any listing boost, not the IT.