Official Spac Thread

[Heaney]

Yah I thought about opening an account with IB. Opened up a margin account, but since my TFSA is with Questrade I just stuck with them despite the higher fees, was just easier having one broker to log in too, and I haven't had any problems with them so far. Hopefully Canadian brokerages start going commission free. There's Wealthsimple but it sounds like it sucks.

Just need to keep making enough money that the fees don't matter lol

Yeah wealth simple has no warrants or options trading, a couple guys at my work use it but just buy penny stocks. My main gripe with questrade is trading hours, IB also has full 4am to 9pm trading whereas QT is 730-530.

[SavoyBrown]

Yeah wealth simple has no warrants or options trading, a couple guys at my work use it but just buy penny stocks. My main gripe with questrade is trading hours, IB also has full 4am to 9pm trading whereas QT is 730-530.

Didn't know brokerages had different trading hours. Does Questrade let you trade pre/after market or is there higher fees or something? I only trade during regular market hours because thats what time I'm at work, can't be asked to wake up earlier.. on that Pacific Time lol

[Heaney]

Didn't know brokerages had different trading hours. Does Questrade let you trade pre/after market or is there higher fees or something? I only trade during regular market hours because thats what time I'm at work, can't be asked to wake up earlier.. on that Pacific Time lol

Yeah questrade let's you trade 2hrs pre and 1.5hrs post, just have to set order type to GTEM and route to ARCA.

ARCA is a bit more expensive but nothing crazy, like 1 or 2 bucks usually.

[SavoyBrown]

Yeah questrade let's you trade 2hrs pre and 1.5hrs post, just have to set order type to GTEM and route to ARCA.

ARCA is a bit more expensive but nothing crazy, like 1 or 2 bucks usually.

Good to know in case I need to get out of something quick lol

on spread

[Heaney]

I'm afraid that monkey Mitch McConnell has single handedly stymied the SPAC pump.

jimmies = rustled

Seems like pretty healthy rotation to me, they pumped hard mostly for no reason and now people take profits and move on, most spacs aren't all that appealing right now with how inflated they've become, for instance who is going to buy QELL warrants at damn near $4 when they just split a month ago and have no target? Same could be said for most SPACs including SNPR and AACQ (and many others) which have warrants up over 50% in the last month and commons up 10-30%.

I think January will pump for spacs, tons of mergers and I assume target announcements will start racking up in the new year, kind of a dead period right now with the holidays.

[topperstyle]

Seems like pretty healthy rotation to me, they pumped hard mostly for no reason and now people take profits and move on, most spacs aren't all that appealing right now with how inflated they've become, for instance who is going to buy QELL warrants at damn near $4 when they just split a month ago and have no target? Same could be said for most SPACs including SNPR and AACQ (and many others) which have warrants up over 50% in the last month and commons up 10-30%.

I think January will pump for spacs, tons of mergers and I assume target announcements will start racking up in the new year, kind of a dead period right now with the holidays.

This

Have about 20k spread over about 5 spacs parked and ready for the announcement on targets. ****, I waited 5 months for Opes to pop..

[RobParks2M]

Hey US tax brahs any of you hearing this shyt about PFIC status on some of these spacs that aren't listed specifically in the US? Holy fuk these implications could be really bad it sounds like.


EDIT: lots of these are based outta the Cayman's too. fuk- the questions/concerns are spreading though so it could really tank some of the big name teams.

AACQ, CRHC, FTOC, AVAN, AJAX, IPOC, IPOF, JWS, SNPR, ACTC, PDAC, VGAC, SOAC is a small list I've found so far.


EDIT:

Sold my AVAN and ACAC. Stacking cash in case people really panic sell due to this. I am small potatoes so I don't care enough to bother worrying about forms like that or any other shyt. Start-ups are supposedly exempt, but I think this is going to push a lot of people to panic sell before year end.

We are fine do to this:
Relief from PFIC provisions is granted to start-up foreign corporations that establish that they will not qualify as PFICs for the two years following their start-up year and that the corporation has not been a PFIC in a predecessor form (i.e., spinoff from a PFIC) (Sec. 1298(b)(2)). Foreign corporations with U.S. taxpayers as investors or corporations with a desire to access U.S. capital markets may disclose PFIC status in the notes to their financial statements (Fitzsimmons, p. 3). It is important to note that once a foreign corporation becomes a PFIC, it will generally always be considered a PFIC for U.S. federal tax purposes. U.S. shareholders owning more than 10% of a controlled foreign corporation (CFC) that otherwise would be considered a PFIC are exempt from the PFIC regime for the years they remain U.S. shareholders of a CFC (Sec. 1297(d)).


I think some of the big names will have a firesale when some of the 100k+ accounts dump all their stuff. Keep an eye on some of these names.

[Heaney]

Hey US tax brahs any of you hearing this shyt about PFIC status on some of these spacs that aren't listed specifically in the US? Holy fuk these implications could be really bad it sounds like.


EDIT: lots of these are based outta the Cayman's too. fuk- the questions/concerns are spreading though so it could really tank some of the big name teams.

AACQ, CRHC, FTOC, AVAN, AJAX, IPOC, IPOF, JWS, SNPR, ACTC, PDAC, VGAC, SOAC is a small list I've found so far.


EDIT:

Sold my AVAN and ACAC. Stacking cash in case people really panic sell due to this. I am small potatoes so I don't care enough to bother worrying about forms like that or any other shyt. Start-ups are supposedly exempt, but I think this is going to push a lot of people to panic sell before year end.

We are fine do to this:
Relief from PFIC provisions is granted to start-up foreign corporations that establish that they will not qualify as PFICs for the two years following their start-up year and that the corporation has not been a PFIC in a predecessor form (i.e., spinoff from a PFIC) (Sec. 1298(b)(2)). Foreign corporations with U.S. taxpayers as investors or corporations with a desire to access U.S. capital markets may disclose PFIC status in the notes to their financial statements (Fitzsimmons, p. 3). It is important to note that once a foreign corporation becomes a PFIC, it will generally always be considered a PFIC for U.S. federal tax purposes. U.S. shareholders owning more than 10% of a controlled foreign corporation (CFC) that otherwise would be considered a PFIC are exempt from the PFIC regime for the years they remain U.S. shareholders of a CFC (Sec. 1297(d)).


I think some of the big names will have a firesale when some of the 100k+ accounts dump all their stuff. Keep an eye on some of these names.

If people are just now beginning to worry about this then they're already fukt because they likely already had SHLL, SPCE (IPOA), OPES, IPOB etc.

Also looks like it's only a possible issue if you hold the spac for 2yrs or more. Overall it seems like a non issue for spacs for USA brahs.

[Heaney]

AACQ
ACAC
AVAN
CRHC
FTOC
BFT
GHIV
GSAH

I have about $32k between all these. What exactly does your post mean? Why would people sell?

If they were to be considered foreign assets you'd have to pay higher taxes on the capital gains but by almost all accounts they are not. Just end of year worrying now that people are like "oh yeah taxes shiet".

[Heaney]

Bought 3K more avan warrants in the mid 1.6s

[Heaney]

Found this reddit thread:

https://www.reddit.com/r/SPACs/comme..._partial_list/

It might be an issue. I sold all my positions regardless, except BFT & GHIV, gonna wait until they're green.

Its not an issue to start with, also you didn't even have the required capital invested to count if it was an issue. You don't have to report if you're investing under 50K in foreign investments.

Lawd reddit scares the bajeesus out of people with the weirdest things.

What I would be more concerned about are the people holding Chinese EV stocks like NIO, EPEV etc or people holding NNDM (Israeli). Also everyone tripping over themselves to buy BABA

[Harry362]

AACQ needs to pop I got 2000 shares close to nav

[Heaney]

AACQ needs to pop I got 2000 shares close to nav

I've quickly found myself in the position of being the owner of 13,000 AVAN warrants lol sometimes things just escalate on me

[RobParks2M]

Its not an issue to start with, also you didn't even have the required capital invested to count if it was an issue. You don't have to report if you're investing under 50K in foreign investments.

Lawd reddit scares the bajeesus out of people with the weirdest things.

What I would be more concerned about are the people holding Chinese EV stocks like NIO, EPEV etc or people holding NNDM (Israeli). Also everyone tripping over themselves to buy BABA

IF it counted- which I posted the info in my original post that says it DOES NOT- you'd have to fill out an INSANE form that takes by IRS estimates 40 hours for EACH company you own. PFIC is 100% different than a legitimate company that has assets and profits.

But you can see how I was right it will cause some silly folk to dump positions and quickly. Be ready to start scooping!

[Heaney]

So there are two exceptions, if you file alone and hold less than $25k on Dec 1st or you hold for less than 30 days you’re exempt, but if you made any gains at all you have to fill out the form that takes 30 hours or whatever. Does that seem right? My total positions for the past two weeks were around $32k, but now its less than $25k. However, I made profit..

No, see Rob's post

[Heaney]

IF it counted- which I posted the info in my original post that says it DOES NOT- you'd have to fill out an INSANE form that takes by IRS estimates 40 hours for EACH company you own. PFIC is 100% different than a legitimate company that has assets and profits.

But you can see how I was right it will cause some silly folk to dump positions and quickly. Be ready to start scooping!

Tomorrow might be a great buying opportunity day, might actually have to thank r/spacs for created a faux hysteria

[RobParks2M]

Tomorrow might be a great buying opportunity day, might actually have to thank r/spacs for created a faux hysteria

Bought a bunch of ASPL commons @10.10 and ASPL+ warrants @1.26

[ajctennis]

My Fst warrants are killing it, up 139%. Just took some profits from some of my other stocks and went balls deep into FST shares. Price- 10.16, & redemption price is $10, what a deal. I think a deal gets announced soon.

[Heaney]

My Fst warrants are killing it, up 139%. Just took some profits from some of my other stocks and went balls deep into FST shares. Price- 10.16, & redemption price is $10, what a deal. I think a deal gets announced soon.

Nice dude!

[ajctennis]

I wonder if that guy Berts held his warrants. I remember he was worried that he bought the warrants too high at 90 cents I think. To think only a couple months ago we were debating going into warrants under a dollar.

Nice dude!

[Heaney]

I wonder if that guy Berts held his warrants. I remember he was worried that he bought the warrants too high at 90 cents I think. To think only a couple months ago we were debating going into warrants under a dollar.

Right? I've owned KCAC and HCAC warrants under $1 and was originally into GRAF at $1.08 lol. Now I'm happy to be in to warrants under $2.

Haven't seen Berts in a while hope he's doing well in spacland.

[RobParks2M]

Fuk man. My warrants didn't finish buying now I have X33. FukinA I hate not having purchases in stacks of 100.

How do you know which companies have declared that they are not a PFIC?

If none of the ones I listed are not PFICs, should I even bother staying with the $25k limit?

Read what I wrote. Technically any of them not based on the US (almost all are Cayman based due to corporate tax law) are considered PFIC because of passive money made from the trust money. HOWEVER there is an exemption that if the company is a start up and won't be considered a PFIC (won't just be a foriegn company with Passive trust income from bonds) 2 years after the year it is created therefore will be exempt.

Obviously with the 2 year time limit they are safe from PFIC status that requires the extra form. THE ONLY CONCERN is if it takes a fukton of time and they start filing for more time. OPES could be a problem for people who held through potentially.... Idk I just remember they needed more time.

[Heaney]

Fuk man. My warrants didn't finish buying now I have X33. FukinA I hate not having purchases in stacks of 100.

Feels. I have 12,032 SNPR because of a partial fill

[RobParks2M]

Feels. I have 12,032 SNPR because of a partial fill

lmao.

Heaney you buying ASPL+ too?? Someone put a 4k order 1 penny higher than the rest of my fill order!

[RobParks2M]

So if I'm understanding correctly, you're saying that we are safe because each of these SPACs has two years to declare themselves a PFIC?

Start ups are exempt as long as they reach a deal within 3 years (year they are opened and 2 more as long as they won't solely be making passive income via bonds from trust) since they must complete transaction or release trust money to stockholders within 2 years they are safe.


TLCFIO:

They technicially are a PFIC. They fall under an exemption if merger or acquisition is complete within 3 years of opening.

[Heaney]

lmao.

Heaney you buying ASPL+ too?? Someone put a 4k order 1 penny higher than the rest of my fill order!

Wasn't me I swear hahaha. I put another 4K AVAN order in at close but it only partial filled so now I have 17,354 ffs I was trying to get 20K

Avg is high 1.60s now, 1.68 I think

[RobParks2M]

Wasn't me I swear hahaha. I put another 4K AVAN order in at close but it only partial filled so now I have 17,354 ffs I was trying to get 20K

Avg is high 1.60s now, 1.68 I think

Out of curiousity why you like AVAN? Aside from the fact you can get warrants for <$1.80 lol

[Heaney]

Out of curiousity why you like AVAN? Aside from the fact you can get warrants for <$1.80 lol

Seems like the fintech industry might be the next rotation for spacs in general, lots of good management groups targeting fintech all of a sudden. Strictly speaking its more the industry I'm bullish on not particularly AVAN specifically, AVAN just seems to be the cheapest right now when compared to AACQ, FUSE and IPOF and it doesn't hurt that they'll have the entire European market to themselves to choose from.

Full disclosure is that I plan on selling on a DA/LOI pump.

[RobParks2M]

Seems like the fintech industry might be the next rotation for spacs in general, lots of good management groups targeting fintech all of a sudden. Strictly speaking its more the industry I'm bullish on not particularly AVAN specifically, AVAN just seems to be the cheapest right now when compared to AACQ, FUSE and IPOF and it doesn't hurt that they'll have the entire European market to themselves to choose from.

Full disclosure is that I plan on selling on a DA/LOI pump.

Yeah I've been high on the fintech train. I really like ETAC though. Got 400 commons and 200 warrants. Waiting to see what happens tomorrow before buying more

[Heaney]

Yeah I've been high on the fintech train. I really like ETAC though. Got 400 commons and 200 warrants. Waiting to see what happens tomorrow before buying more

The way I'm looking at avan is that even if they only get up to 2.00 (they were 2.20 on monday) thats still a $4100 gain for me.