Tried to ask this in another sub, but it doesn't allow SPAC q's, so thought I'd ask here.
I''ve been holding ERJ since $9.22. Originally, I had a 16 dollar price target, which was met last week when the Eve Air Mobility deal was announced.
It looks like ERJ is talking about doing a SPAC for this division of the company.
I'm not educated on SPACs, but common sense says this would peel Eve Air out of ERJ and make a separate ticker, right? Or not?
So, a couple of questions here- (Forgive my ignorance on this one. I'm trying to learn and Dr. Google isn't helping.)
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If ERJ does do a SPAC, would current ERJ shareholders get any kind of stake? Like let's say 10% of shares go over to the spac? Or, would ERJ shareholders just be left with fond memories of what might have been?
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If ERJ is in the SPAC, does this mean that both ERJ and the SPAC benefit financially, or would all funds pour into the SPAC?
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At the current price point, we are sitting right around prepandemic levels and the company is slowly getting back to normal as air travel resumes and business gets back to traveling in Q3 2021. ERJ has been fairly immune to the crazy price swings we saw in April, so I'm trying to decide if I should hold a little longer and haven't been able to find any information about when a current ticker splits into a SPAC.
Thank you!!
Submitted June 15, 2021 at 10:26AM by BeautifulParty6860 https://ift.tt/3vsmhJE
