What is a SPAC?

What is a SPAC?

  • SPAC stands for Special Purpose Acquisition Company or Special Purpose Acquisition Corporation.
  • SPACs are publically traded companies with only cash and no operations.
  • Their sole purpose is to raise money, search for a revolutionary private company, and take them public.
What is a SPAC?

If Blubbr was a SPAC

  • We would IPO our SPAC, Blubbr A, under the ticker BLBA with a share price of $10.
  • If we started with $100 million in our bank account, we could issue 10,000,000 shares of BLBA.
  • Our management team would be seeking to acquire a company worth around $100M.
If Blubbr was a SPAC

Media Coverage

  • Before the merger is announced, media companies might release articles about potential targets for BLBA.
  • For example, BLBA might be looking to acquire a company such as Replit.
  • If the market thinks this is a good acquisition, the BLBA share price will increase above $10 a share.
Media Coverage

Blubbr Strikes Back

  • SPAC issuers will often create subsequent SPACs after finding acquisitions for their current SPACs.
  • If the Blubbr team believes BLBA is close to finalizing a deal, Blubbr may file for a second SPAC, BLBB.
  • This indicates BLBA is likely to merge soon and will likely see a price increase.
Blubbr Strikes Back

The Merger

  • Blubbr and Replit file with the SEC to officially announce they are merging.
  • In 3 months, the BLBR ticker will change to REPL and all Blubbr shares become Replit shares.
  • BLBR price will likely have strong price movements to reflect the merger confirmation.
The Merger