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Cross posted to a few other boards ...

Curious how this works.

Is it possible to buy LGVW now to "get in early" on the butterfly IQ stock?

I support butterfly and their mission, and itd be fun to own a smidge just to follow along.
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Actually, that's the entire point of the acquiring SPAC.

The purpose of a SPAC is to invest in the promise that something good will come. You buy shares of the placeholder company with the understanding and expectation that the SPAC is going to buy something really cool and worth your long term investment dollars. When and what, you won't know until they make the announcement.

The company being acquired will become a public company because the SPAC acquiring them is a public company. The SPAC will then adopt the name of the new company and change its ticker symbol. This allows the company being acquired to skip the costs and process of going public by itself. Shareholders of the SPAC need only enjoy the ride.

Who notes the risk is that until a SPAC announces an acquisition, it really has no growth drivers, and once that acquisition has been announced, shareholders have to decide whether the wait was worth it and you have high enough conviction in the target as a long term (3-5 years or longer) investment to hand onto your shares or to sell and start over somewhere else...

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investing in a SPAC, pre-announcment of a candidate, would be based on the SPAC sponsor, you are trusting in them to make a good .

you have 3 choices.
- buy pre-announcement
- buy post-announcement, but before the acquired co is listed
- wait for the acquired co to be listed

many times there are also warrants that can be purchased.

MF Industry Focus has done a couple of podcasts on SPACS.
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