I don’t know who needs to know this, but just to be clear to those buying SPACs you are not buying shares in a company, but a shell vehicle that may become a company.
As such, that de-SPAC process involves a vote on the new company. FreeTrade does not allow you to vote on the merger even though sufficient votes are required for it to pass, become a company, and then hopefully you earn more on your investment.
Should this be more clearly laid out? I am very happy that FT has enabled me to buy into a SPAC ($BFT) - but I didn’t realise that would come without voting rights. If the merger fails by the amount of shares I hold (unlikely but you never know) a lot of people are going to lose a lot of money and questions about mis-selling might get asked.
Several SPACs are said to be close to failure because people aren’t voting - mainly because they either don’t know they have to or they don’t have the ability to do so.
I don’t see FreeTrade as a trading platform but rather a way to invest long term, however if I don’t get the rights to vote to make the SPAC become the company, what exactly am I holding it for? If anyone has thoughts I’d love to hear them.
Kind of worrying in all the clamour for SPACs to be added that no-one cares about (or even knows about) one of the most important aspects of the whole process.
Shows a lack of understanding - and I include myself in that. I blindly assumed I’d be able to vote.
It probably depends on the spac because I voted in the just eat merger for example, they sent round a google form from what I remember. Might be worth asking.
Good to know, however that wasn’t a SPAC deal and the process is different.
I’m guessing SPACs being US listings may mean its a “US partner issue” and there are complications involved in getting retail investors to the table, but that’s speculation from me. It would be good to get some guidance either way.
I asked in app but was just told I can’t vote.
It would put me off getting involved in another deal to be honest.
