For this mid-month update I want to focus on a SPAC that for the better part of two years after completing its business combination with an operating company had managed to stay above the $10 level but experienced a significant drop in the last three months.
Before we get into this new idea, I wanted to briefly touch upon the two energy related companies we discussed in the September 2024 Mid-Month update. We wrote the following about the Canadian oil & gas exploration company Frontera Energy (FEC:CA, OTC: FECCF) in that update:
“The key highlights are that the stock is trading at CAD $8.07 and the tender offer is for CAD $12, providing for a 48.70% return but only if your tendered shares get accepted and the company does not cancel the tender offer (it has happened in the past). With an odd lot provision, shareholders tendering 99 shares or lower will get those shares paid out but it limits the total profit to CAD $389 assuming your purchase price is close to $8.07 for 99 shares and there are no trading costs.”