Company description

Fri, 29 May 2020 11:57:34 GMT

Forum Merger II Corporation does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or business combination with one or more businesses. The company was founded in 2018 and is based in Delray Beach, Florida.

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Fri, 29 May 2020 16:08:33 GMT

$FMCIW - Established a very small speculative long position based on a possible plant based food merger that is expected to be consummated in early June, and the recent momentum many SPAC stocks have recently experienced.

Please note that FMCIW is highly speculative and worth much less than where they are trading at today or ZERO if the particular merger event catalyst does not play out as expected by investors. Also, please note that our success rate dealing with Special Acquisition Corps (SPACs) and associated warrants is spotty at best, but the payoffs have been rather large for the ones that have worked out. Finally, based on our observation, SPACs perform horribly over the long-term. So, you have been warned!

Forum Merger II Corporation (NASDAQ:FMCI) is a blank check company formed for the purpose of acquiring a business through a merger. On May 13, 2020 the company announced it signed a letter of intent and expects to sign a definitive agreement to acquire a high-growth, plant-based food company with a broad portfolio of innovative products that are aligned with major food trends and sold through leading retailers and distributors across the United States.

The warrants (FMCIW) which are exercisable at a one for one ratio at $11.50 with a September 30, 2025 expiration, have risen from $0.25 the day prior to the announcement to its current price of $2.50. There has been hype that the proposed merger would be with Impossible Foods, a notion that has likely led to the rise in the warrants.

We have our doubts that it could be Impossible Foods, given that the company recently raised $500 million and currently has a near $4 billion valuation. However, we placed our bet given that $BYND is trading at extreme multiples on nearly any metric you choose and due to the recent SPAC strength of Vectoiq Acquisition Corp. (NASDAQ:VTIQ), Draftkings Inc. (NASDAQ:DKNG) and Virgin Galactic Holdings, Inc. (NYSE:SPCE) (and their associated warrants).

A look at the stock charts of the common stocks (warrants followed suit)…

VTIQ

DKNG

SPCE

Forum Merger Ii Corporation (FMCI) research, news, and more from GeoInvesting

Company description

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