New Low Risk Special Situation Alert and NuPathe Update


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Jae Jun

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Keeping this short.

Bought into another low risk, high probability special situation in SPGZ thanks to a contributor on the Value Forum.

This is a reverse split special situation.

Total return will be around 8%, but this one looks like another no brainer.

Before I continue, please click on the image below to download a PDF version of this article.
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Full details can be found in the latest proxy.

As a result of the reverse stock split, each holder of record of fewer than 1,000 shares immediately before the effective date will receive cash in the amount of $0.65 (subject to any applicable U.S. federal, state and local withholding tax), without interest, per pre-split share and will no longer be a stockholder of the Company. – SEC Filing

To make the most of this, you need to own 999 shares to be sure to get cashed out.

From the document, insiders are for the plan. Reading up on how everything that led to this reverse merger, I don’t see it falling through. The difficult and more complex spinoff and transactions already occurred in March this year, so this one should be a breeze to complete.

Very low volume stock though. Requires patience to buy, but not much time to buy since the date of the meeting to approve this is May 12.

NuPathe – Final Update Towards a 377% Return

One last update on the Nupathe special situation.

If you bought the stock, you should have received $3.65 cash for each share and hold the remaining stub.

Remember that the stub is not tradable. If NuPathe’s migraine patch flops, the position is dead. But I see the initial sales milestone figure as a low hurdle.

But who knows, I’ve been wrong before.

It will take at least 3 years before we know.

But a low risk chance for at least a 377% gain in 3+ years is a bet I’ll take every single time.

For future questions and discussions on NuPathe, use this forum thread.

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5 responses to “New Low Risk Special Situation Alert and NuPathe Update”

  1. use says:

    another dead bird from mr jun

  2. Justin says:

    You don’t need to buy SPGZ before Monday (5/12). That’s the day of the shareholder vote to approve the reverse split. Unless you’ve been a shareholder since mid April, you can’t vote your shares on Monday. To get the payout, you just need to be a holder of record before the effective date, which won’t be set until after the vote.

  3. yes but there is a good chance that the effective date can take place very soon after the meeting.
    So if that were to happen, you need to be on record so better to be in earlier than later.

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