Pershing Square Tontine to redeem shares and will not enter business combination

• Pershing Square Tontine (NYSE:PSTH) will redeem all of its outstanding shares, effective as of July 26, 2022, because the company will not consummate an initial business combination within the time period required.
• Company currently expects the per-share redemption price for the public shares will be ~$20.05.
• The redemption amount will be paid on July 26, 2022.
• Contributor comments: 'a wind-up of PSTH now looks like the most likely scenario.'

Comments

[LeMarJackson]

Am late to this. Can someone confirm my underestanding? As a PSTH holder I got back $20.50 AND will get 1/2 a SPARC for each share of PSTH I owned???

[User46126116]

@LeMarJackson You should have received approximately $20.05 per share and, if the SPARC structure is eventually approved by regulators, you will receive 1/2 of a SPARC per share. The last estimate I saw was September/October for the SPARC approval/distribution. Of course, it is possible that the SPARC will never be approved leaving you with just the $20.05/share.

[BobW333]

@LeMarJackson Yes.
Over the last 2-3 days, three things happened in my brokerage account:
PSTH was closed out; the money appeared; a placeholder for the SPARC warrants appeared.

[chi_tino]

Someone help me find the mistake in my arb math. I have been making this trade all morning and it looks like free money. Sell the PSTH Jan 19, 2024 $20 calls for 20 cents, buy the Aug 19, 2022 $20 calls for 10 cents. Pocket the difference in cash. Upon the buyout, they are all automatically exercised and the long/short shares cancel each other out. Any question of future SPARC warrants is also neutralized.

[The Real Cavalier]

@chi_tino PSTH will cease trading on July 25.

[chi_tino]

@chi_tino That arb completely closed up. All dates for the $20 calls are now trading at the same price. It was a few hundred dollars of easy, risk-free beer money while it lasted.

[energyguy921]

Why are the warrants selling for 44 cents? Short them!!

There will be no redemption rights or liquidating distributions with respect to the Company’s warrants, which will expire worthless.

[BobW333]

@energyguy921
Holders of PSTH warrants will be issued warrants in the new SPARC. They will be worth more than $0.

[LAMINE KANE]

What will happen to $PSTH warrants?

[energyguy921]

@LAMINE KANE Worthless

There will be no redemption rights or liquidating distributions with respect to the Company’s warrants, which will expire worthless.

[User46126116]

@energyguy921 Actually, if SPARC ever comes to fruition, which apparently they think could happen in the fall, the warrant holders will each get a SPARC and common shareholders will get 1/2 of a SPARC.

[energyguy921]

@User46126116 that has changed

Go read his press release, it says unequivocally, they expire worthless

[dxiri]

do we get SPARC or anything else in addition to the cash in the trust?

[BobW333]

@dxiri
Yes, SPARC warrants in addition to the $20-and-change.

[Flip4Flop]

only had 100 shares left and about 50 warrants. Managed to sell the warrant after the close for .40 and the shares for 20.11 so made out there a little.

[scizen]

Major disappointment...Well, all said, this will at least give most of my money back. A couple of other de-spaced companies I took on are so far down that it's hardly an ongoing concern. Ackman had a good deal with UMG, but alas regulators struck again. Win some...lose some.

[The Real Cavalier]

@scizen You do realize if they did the deal the stock would have fallen 20 to 30 percent in a matter of days. Thank you lucky stars this deal broke.

[Wint12340]

@DavidHHolmes go on

[The Real Cavalier]

If 95% of the existing SPAC management teams thought of anything but their own personal gain they'd all call it quits.

[Potty1313]

Ackman showed his true colors, took the deal for his own fund -- in which he himself has a huge stake

Lesson learned about Ackman

[energyguy921]

@Potty1313 Not his fault, the SEC's

[Potty1313]

@energyguy921 Obviously Ackman's fault, since he made the decisions after spent tens of millions of dollars OF INVESTORS MONEY on legal advice, so they knew what the rules were -- THEN Ackman took the deal for his fund and made a mint.

[energyguy921]

@Potty1313 he didn’t make a mint

It’s trading at the same price he paid for it

The sec screwed because he backed Bloomberg

I guess he should of planned on Biden being a crook

[Legacy Legends, LLC]

I warned of this clown show. 🪦 RIP.

[Ben Ken]

Sad to see it go - the r/psth sub reddit has been comedy gold….

[Jamm Systems]

End of an era. I remember when everybody was so excited about them. Seems like several lifetimes ago LOL

[DumInvestor3]

Now is the time to make a deal. So much value…

[Illuminati Investments]

Missed the bubble...

[energyguy921]

Warrants are worthless. No one wanted 4 billion!

He should of rolled up an energy company

[piano-memo]

Never Trust Ackmann again. Dead money for 2 years

[energyguy921]

@piano-memo You made a nickel, most spac's lost 50 % or more

[Seeking mispricings]

@energyguy921 And you aren't down 30-50% like the nasdaq.

Ackman's greed unintentionally made investors rich.

[energyguy921]

@A........a Hey dope, I'm in energy the only sector is up big time