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Conversion of SPAC units



Hi there,

I have been a member of IG for a while and have enjoyed trading shares and options. I am exploring a new vehicle of SPACs.

I have had a recommendation to buy some SPAC's, being units in a company pre-IPO. We have been told by our mentor, that we should now try and split the units into shares and warrants before the company actually merges with it's new private company. This will allow flexibility in our trading that we could sell the shares before the merger occurs.

I have emailed a couple of times to the corporate acquisition team who say they don't provide this service of splitting the units.

Firstly I am not sure why not. 

But secondly, I need to confirm that when the merger takes place between the public SPAC company and the private company, that my units will automatically convert into shares and warrants.

I need this confirmation that this will automatically happen so I am able to trade both the shares and warrants at that time. 

I understand the units will cease to exist at that date anyway, but would like 100% confirmation that this will happen.

And might IG look into offering this service in the future of splitting the units before the merger announcement?


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