Why I Bought Warrants in This Electric-Vehicle SPAC
Prior to announcing a merger target, the most prominent risks associated with a special purpose acquisition company (SPAC) are the unknown: What company will the SPAC ultimately become, what structure will the deal have, and whether or not the SPAC can even close a transaction at all. Earlier this month, ArcLight Clean Transition (NASDAQ: ACTC) announced that it would be merging with Proterra, and the stock immediately doubled, thanks in part to investor enthusiasm surrounding all electric-vehicle (EV) start-ups.
Here's why I bought warrants in ArcLight Clean Transition last week.
Image source: Proterra.
Source Fool.com
