Wednesday, January 20, 2010

Two new SPACs explored - AXG and NLX

1. AXG - Atlas Acquisition Holding Corp. Their target company is Select Staffing, a leading provider of temporary staffing services in the United States and is the largest provider of temporary staffing services in California. Through a network of company-owned and franchise agent offices, Select Staffing offers a wide range of temporary staffing solutions for over 200 job classifications across a range of service categories. Select Staffing provides its services in 45 states through 355 offices, of which 202 are company-owned and 153 are franchise agent offices.
Select Staffing has rapidly expanded its revenue and U.S. market share through numerous acquisitions and organic growth. Select Staffing has a proven track record of identifying and successfully integrating acquisitions, winning new clients and retaining existing clients. Select Staffing’s revenues have grown during the last four years at a compounded annual rate of 37%, from $411 million in 2004 to over $1.4 billion in 2008.

Here is what geoinvesting's contributor, who did warrant analysis on TMI (CCME) has to say about AXG Warrants.

At the special meeting of Atlas warrant holders, Atlas warrant holders will be asked to consider and vote upon the following proposals:

(1) *The Warrant Conversion Proposal* — a proposal (the “*Warrant Conversion Proposal*”) to:
  • approve an amendment to the Warrant Agreement, dated as of January 30, 2008 (the “*Warrant Agreement*”), between Atlas and American Stock Transfer & Trust Company, to provide for the conversion of all of Atlas’ outstanding warrants into an aggregate of 1,677,000 shares of Atlas common stock; and
  • terminate the Warrant Agreement in connection with such conversion, which Atlas believes will increase its strategic opportunities and attractiveness to future investors by eliminating potential equity dilution from the warrants;
(2) *The Warrantholder Adjournment Proposal* — a proposal to approve the adjournment or postponement of the special meeting of warrantholders to a later date or dates, if necessary, to permit further solicitation and voting of proxies (the “*Warrantholder Adjournment Proposal*”); and

(3) Such other procedural matters as may properly come before the special meeting of warrantholders or any adjournment or postponement thereof.

In connection with Atlas’ initial public offering, James N. Hauslein, Gaurav V. Burman, Sir Peter Burt, Michael T. Biddulph, Michael W. Burt and Promethean plc, purchased an aggregate of 5,800,000 warrants, and Messrs. Hauslein and Burman subsequently purchased an aggregate of approximately 1,100,000 warrants in open market purchases, for a total of approximately 6,900,000 warrants. As of the Record Date, these warrantholders owned an aggregate of approximately 27% of the outstanding warrants of Atlas. These warrantholders have agreed to vote their warrants in favor of the proposals to be presented at the special meeting of warrantholders.

"So that means there are like 25M or so warrants which will become 1.677M common. That means 1 common for every 14.9 warrants (probably an even 15, rounding error). AXG warrants at 0.26 right now, multiply by 15... Thats like buying the common at $3.9 *if* the acquisition goes through.

Seems to me like a double if the acquisition happens, nothing if it doesn't."

I bought AXG Warrants at an average price of .35

2. NLX - Overture Acquisition Corp

I bought NLX warrants at an average price of .21. More DD will be provided soon...

CIO's deal was closed succesfully today! The warrants touched $1.24 but I sold some at a dollar and my average price was .14. Keeping the complexity of the deal, it looks like lot of people took the profits and moved on but I think it will continue its uptrend once the excitement is over! Remember this is what happened with CCME and CHSQ..

A general Caution and Advise -As I always advise in my posts, Do not chase stocks. please keep in mind that I am not a Stock Market Analyst or an Investment Adviser to count on my recommendations/alerts. As always please do your DD before investing or speculating, start with a small position, always keep your stop losses in place and emotions out. Finally thank me for your profits but do not blame me for your losses because you are the one who pulled the trigger!!!


  1. Mr.Incredible,
    In the case of AXG/WS you are assuming that the stock stays at $10, which would amount to warrants doubling up. Unless you have shorted AXG against your warrant purchase, all that would need to happen is stock losing 50% or more after the transaction is approved but before your warrants are converted into stock, and you will lose on your warrants. Take a look at most ( not all ) of the SPAC transactions in the past as to how much value stock loses post transaction to give you an indication. You have a big bet on where the stock will end up post transaction.

  2. As you may or may not is a rare occasion that you can get a locate on a SPAC pre merger consumation. Keep that in mind.


Who is Mr.Incredible?

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Mr.Incredible is a Momentum/Technical Breakout player who trades small/micro cap plays and who saw a 600% Growth since 2006, Yes even in this down market. I am going to post my real trades (including profits/losses) soon...As a general caution and advice Please start with a small position and always keep your stop losses in place just in case....As usual Do your DD before investing. Thank me for your profits and don't blame me for your losses because you are the one who pulled the trigger!!!