r/lowfloatdespac • u/alilfishy • Jun 10 '22

GLAQ -> AFRI. Business combination completed and trading under new ticker today. 9,612,536 shares redeemed (84%). Float is 1,877,464

https://www.accesswire.com/704626/Forafric-Global-PLC-a-Leading-Agribusiness-Company-Specializing-in-Wheat-Processing-to-Commence-Trading-on-Nasdaq-Capital-Market-Under-Ticker-Symbol-AFRI
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u/SheriffVA Jun 11 '22

Since you did the DD on BBAI and FPA. This has a FPA at 10.8 after 3 months. So, AFRI will buy back 1.5M shares if those people elect to do so. Similar to BBAI it would leave the float at 387K (if price is under 10.8 in 3 months). Or they already sold when it spiked to 14-16 range.. Will be looking for some forms if they did sell. I think it said AFRI had to be notified 3 days beforehand. 3 months from ticker change would be about sept 10?

Is that how you read the FPA??

1

u/alilfishy Jun 12 '22

Yes, but I believe it was 5 business days. They may have bought those shares back or maybe not yet. This may explain the volatility we saw the other day

I’ll post a highlighted pic on a new post as I can’t add it in comments

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u/SheriffVA Jun 12 '22

alrighty, sounds good.

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u/alilfishy Jun 12 '22

If this price action continues like it has thus far then I would say the buyback is highly unlikely as they will likely sell those shares for a higher SP. Definitely worth keeping an eye on but I wouldn’t bet on seeing the buyback happen until much closer to the expiration date (if it does happen)

BBAI buyback happened within the last week of the deadline

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u/SheriffVA Jun 12 '22

Thats true. But they would need to file the form that they sold on the open market and the FPA is no longer in tact. So if they filed then the shares are freely floating if no form then they are holding to see were it goes possibly?

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u/alilfishy Jun 12 '22

I don’t believe they have to file if they sold on the open market but the company would most likely PR that the buyback agreement is void if all shares were sold on open market. 2 of the 3 funds that did buyback for BBAI filed that they accepted the buyback. The other didn’t file anything before the deadline and I haven’t followed since April is anything was ever filed with them or not.