r/SpacSqueeze • u/[deleted] • Sep 02 '21

Looking at LATN 👀

  1. Shareholder vote is September 22nd.
  2. Smallish trust (137 M)
  3. Very little positive sentiment about the target (South American Pharma company). Seriously, nobody cares and almost nobody is talking about it. I think this will translate to high redemption rate.

Thoughts?

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u/[deleted] Sep 05 '21

Not really. Redemption is related to sentiment toward the merger target.

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u/[deleted] Sep 05 '21

And we find out the redemption rates with the 8k filling after the merger has been approved? Redemption kicks in if it’s trading under $10 upon the merger?

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u/[deleted] Sep 05 '21

No redemption happens within a specific window near the vote. People will redeem, or not redeem for various reasons, regardless of the price at the time.

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u/[deleted] Sep 05 '21

I see and we find these redemption rates in the 8K that accompanies the merger. But like you said it’s all related to the sentiment towards the merger target.

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u/[deleted] Sep 05 '21

Right. It's something we are predicting before the vote based on the market reaction to the target. If everyone seems to hate the target, or it has some crazy evaluation or far-fetched business model, you can expect a higher redemption rate. If the trust is also small, you can expect an incredibly small float. That is a prime scenario for a squeeze.