$AMAO - The Newest Low Float SPAC with NAV Protection

We've all seen THCA with its 2.6M float, but there's another pre-DA SPAC with a lower float AND still near NAV. Here's my DD for $AMAO - the newest low float SPAC with NAV protection. Due to extremely high redemptions in their latest extension vote, $AMAO (American Acquisition Opportunity) has a float of 1.56 million shares and NAV of $10.10. In addition, their extension agreement has implemented a large FPA (remember ESSC?) Redemption Numbers (SEC filing) Nearly 9 million shares of AMAO were redeemed at their last extension vote in late March. Similar to THCA, the vote passed, but many institutions requested to redeem their shares. This has resulted in an extremely small float for AMAO. Here's a full breakdown of AMAO's float: Data from AMAO's SEC filings The Forward Share Purchase Agreement (FPA) prohibits 1.1 million shares from being sold below $10.35 which effectively creates a sub 500K share float below this level. This FPA is just the icing on top. The actively traded float of AMAO will be between 439K - 1.56M shares depending on how many of these institutions decide to sell if the price rises above $10.35. Additional upside occurs if some of these institutions decide to hold. Why would they hold? Well, if they expect a large run up in price similar to THCA and ESSC it would be in their best interest to hold. If this happens, the actively traded float will be significantly less than 1.56 million. Best of all, even if they all decide to sell, the float will never be larger than 1.56 million shares due to redemptions. FPA conditions as per AMAO's filings AMAO has a NAV of $10.10 which implies a phenomenal Risk/Reward at these prices ($10.28 as of this post). In addition, the average volume for AMAO over the past month is only 33K shares per day. The one downside with AMAO is its lack of options. However, although options are appealing, the recent performances of SPACs without options such as FRGE, DRTS, and ALLG, have proven that options are not entirely necessary for substantial price movement. I remain extremely bullish on AMAO especially considering its low float and low risk due to NAV. Thanks for reading my due diligence on AMAO. TLDR: AMAO is a SPAC with a NAV of $10.10 and a maximum float of 1.56 million shares which is much smaller than THCA. AMAO currently presents a fantastic risk/reward. Disclaimer: I am long 4500 shares of AMAO due to my own research. This post contains my due diligence on AMAO. I am not a financial advisor nor am I recommending that you buy this stock.

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$AMAO - The Newest Low Float SPAC with NAV Protection

bullish

We've all seen THCA with its 2.6M float, but there's another pre-DA SPAC with a lower float AND still near NAV. Here's my DD for $AMAO - the newest low float SPAC with NAV protection.

Due to extremely high redemptions in their latest extension vote, $AMAO (American Acquisition Opportunity) has a float of 1.56 million shares and NAV of $10.10. In addition, their extension agreement has implemented a large FPA (remember ESSC?)

Redemption Numbers (SEC filing)

Nearly 9 million shares of AMAO were redeemed at their last extension vote in late March. Similar to THCA, the vote passed, but many institutions requested to redeem their shares. This has resulted in an extremely small float for AMAO.

Here's a full breakdown of AMAO's float:

Data from AMAO's SEC filings

The Forward Share Purchase Agreement (FPA) prohibits 1.1 million shares from being sold below $10.35 which effectively creates a sub 500K share float below this level. This FPA is just the icing on top. The actively traded float of AMAO will be between 439K - 1.56M shares depending on how many of these institutions decide to sell if the price rises above $10.35. Additional upside occurs if some of these institutions decide to hold. Why would they hold? Well, if they expect a large run up in price similar to THCA and ESSC it would be in their best interest to hold. If this happens, the actively traded float will be significantly less than 1.56 million. Best of all, even if they all decide to sell, the float will never be larger than 1.56 million shares due to redemptions.

FPA conditions as per AMAO's filings

AMAO has a NAV of $10.10 which implies a phenomenal Risk/Reward at these prices ($10.28 as of this post). In addition, the average volume for AMAO over the past month is only 33K shares per day.

The one downside with AMAO is its lack of options. However, although options are appealing, the recent performances of SPACs without options such as FRGE, DRTS, and ALLG, have proven that options are not entirely necessary for substantial price movement. I remain extremely bullish on AMAO especially considering its low float and low risk due to NAV. Thanks for reading my due diligence on AMAO.

TLDR: AMAO is a SPAC with a NAV of $10.10 and a maximum float of 1.56 million shares which is much smaller than THCA. AMAO currently presents a fantastic risk/reward.

Disclaimer: I am long 4500 shares of AMAO due to my own research. This post contains my due diligence on AMAO. I am not a financial advisor nor am I recommending that you buy this stock.

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2 min
12.00
Target Price
8/ 10
Confidence
2-6 Months
Timeframe
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