But whoever bought yesterday made a very nice winning bet.
I-AM Capital Acquisition Company, which had originally scheduled its shareholder vote to approve its business combination with Smaaash Entertainment for today (October 4, 2018), is postponing the vote-date to a to-be-determined later date within the next 45 days.
However, there was some activity yesterday in the share and somebody made a very good bet…The lowest share price traded was $5.95…. and whoever bought anywhere near yesterday’s close price of $6.46 now gets a whole new record date! That means they can be eligible again to redeem for $10.21 per share in trust (and likely more than that now with interest). That’s a lotta yield. There’s wasn’t a ton of volume traded, but Christmas came early for whoever did buy.
Furthermore, even if the vote today was never cancelled, whoever still held the share going into the vote (and owned it as of the record date) would have likely ALSO had a good day, but here’s why: The press release implied there were going to be a lot of redemptions. That means the 600,000 share dividend would have been carved up for a very small number of shareholders left. So if you owned the share at $10.00, but post-vote there were so little shareholders left you got a dividend of one extra share, you would then own two shares at the current trading price of $6.46. Not too shabby.
I-AM Capital is now looking to take additional steps to shore up the transaction, including finding a backstop arrangement and that will most likely be done far below a $10.00 share price. Stay tuned to see what develops.