Event-driven Investing: KPPC (part 2 of 4)

KPPC has been formed as a roll-up in the paper and packaging industry by a Special Purpose Acquisition Corporation (SPAC). A SPAC issues shares and warrants to investors and uses to capital to perform an acquisition. As a result, KPPC had a large number of warrants expire on Aug 17, which created an overhang on the stock and in interesting dynamic. The share price was range bound for 3 months and then traded up 30% in just a couple of days. We are using this situation as an example of event-driven investing.

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Education

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• investing
• stock market
• lesson
• event-driven investing