Liquidity24’s Post

We are pleased to share ArcStone's latest case study highlighting our cross-border credentials and expertise. On March 25, 2024, Nobul AI Corp. ("Nobul") and Check-Cap Ltd. ("Check-Cap") have announced a definitive agreement for a business combination that will result in a majority stake for Nobul's stockholders, aiming to establish a leading AI-driven fintech marketplace headquartered in Toronto. The merger, pending Check-Cap shareholder approval and other customary conditions, will see Nobul's executive team, led by CEO Regan McGee, take the helm of the newly combined entity, which plans to apply for listings on both the NASDAQ and TSX. This strategic move, supported by Check-Cap's Board after a thorough review, is intended to enhance shareholder value and leverage Nobul's successful track record in M&A to pursue further growth opportunities. This strategic alliance is anticipated to catalyze significant growth, as evidenced by the substantial appreciation of Check-Cap shares post-announcement, marking a 40.31% premium to the pre-announcement closing price. In our role as advisor to Check-Cap's Board of Directors, ArcStone Securities and Investments Corp., in partnership with Kingswood Capital Partners LLC, was entrusted to conduct a comprehensive Fairness Opinion. This critical analysis serves to ensure that the proposed transaction aligns with the best interests of Check-Cap's shareholders, providing an objective assessment of the financial aspects of the deal. Achieving this within an extraordinarily compressed timeframe, our team leveraged deep industry expertise and a meticulous analytical approach to deliver a Fairness Opinion that upholds our commitment to integrity, diligence, and excellence. This endeavour underscores our capability to execute high-stakes advisory services under demanding deadlines, reflecting our unwavering dedication to our clients' success. We at ArcStone Securities and Investments Corp., together with Kingswood Capital Partners LLC, are honoured to contribute to this transformative transaction, reaffirming our position as trusted advisors in the financial and investment landscape. We look forward to continuing to serve our clients and stakeholders with the highest standards of excellence and integrity. ArcStone Securities and Investments Corp. Kingswood Group Kingswood U.S. Michael Nessim Edward Tsuker Kevin J. Ernst Ariel I. Michael Astone, CPA, CA Raj Ravindran Jack Bensimon Derek Hall Regan McGee Lisa Coulman, CPA, CA, CPA (Illinois) Paul Medeiros

Corporate partner Matthew Goldstein spoke with Mergermarket about the rapid ascent of general partner-led secondaries in recent years, as well as the intensification of liquidity needs, which has prompted concerns over where there is enough capital to cover all the deals that private equity firms are looking to launch. https://lnkd.in/evBQBTy4 #investmentmanagement #privatefunds #privateequity

What is a REIT? A real estate investment trust or “REIT” is a trust company that raises equity through an initial public offering (IPO), which is then used to buy, develop, manage and sell assets in real estate. The IPO is identical to any other security offering with many of the same rules regarding prospectuses, reporting requirements and regulations; however, instead of purchasing stock in a single company, the investor in a REIT’s common stock is buying a portion of a managed pool of real estate. This pool of real estate then generates income for the REIT through renting, leasing and selling of property and distributes it directly to the REIT holder on a regular basis. Listed REITs have common shares that trade on a stock exchange and are therefore liquid. The shares of nontraded REITs are not listed and have limited liquidity, primarily through share redemption programs. To qualify as a REIT with the IRS, a real estate company must agree to pay out at least 90% of its taxable profit in dividends (and fulfill additional but less important requirements). By having REIT status, a company avoids corporate income tax. REITs typically focus on either equity or debt. Explore REITs covered by Blue Vault: https://conta.cc/4aoUluq #AlternativeInvestments

Last week, the SEC adopted new rules for SPACs—the popular alternative to traditional IPOs. New requirements will make disclosures and processes for both SPAC IPOs and de-SPAC transactions more difficult. Could this be the final nail in the coffin for SPACs?   In our latest blog post, WilliamsMarston Advisory Partner Mark LaMonte breaks down the boom and bust of the vehicle in recent years, what the new SEC rules mean for SPACs and the future of publicly traded companies. Head to our blog to read the article: https://lnkd.in/eDunavAs

Let me share few stories regarding capital structure arbitrage to show you how this intriguing strategy plays out in real-world scenarios. Capital structure arbitrage is like uncovering hidden treasures within a company’s financial makeup, finding and exploiting mispricings between its debt and equity. ### Example 1: Distressed Company 1. Company Overview: Suppose a company, ABC Corp, is in financial distress. Its stock price has fallen significantly due to concerns about its ability to meet debt obligations, but its bonds are still trading at a relatively high price. 2. Arbitrage Opportunity: Investors believe the market has overreacted regarding the stock but has not fully reflected the distress in the bond prices. 3. Action: Investors take a long position in ABC Corp's stock (expecting the stock price to recover) and a short position in ABC Corp's bonds (expecting the bond prices to fall). 4. Outcome: If the company manages to recover and improve its financial situation, the stock price will increase, and the bonds' value may decrease as the company restructures its debt. Investors profit from the increase in stock value and the decrease in bond value. Example 2: Merger Arbitrage 1. Company Overview: Two companies, XYZ Inc. (acquirer) and DEF Ltd. (target), are undergoing a merger. XYZ Inc. announces that it will acquire DEF Ltd. in a stock-for-stock transaction. 2. Arbitrage Opportunity: After the announcement, XYZ Inc.'s stock price drops due to market skepticism about the merger's benefits, but DEF Ltd.'s bonds remain stable or even rise due to the perceived increased creditworthiness post-merger. 3. Action: Arbitrageurs short XYZ Inc.'s stock (expecting further decline or stable price) and go long on DEF Ltd.'s bonds (expecting bond prices to increase as the merger completion becomes more likely). 4. Outcome: If the merger goes through, XYZ Inc.'s stock might drop further due to merger integration costs, while DEF Ltd.'s bonds benefit from the improved credit profile, resulting in a profit for the arbitrageur. Example 3: Convertible Bonds Arbitrage 1. Company Overview: LMN Corp. has issued convertible bonds, which can be converted into equity at a predetermined price. 2. Arbitrage Opportunity: The convertible bonds are trading at a discount compared to the company's stock price. The arbitrageur believes this mispricing is temporary and can be exploited. 3. Action: The arbitrageur buys LMN Corp.'s convertible bonds and simultaneously shorts the company's stock. The hedge ratio is adjusted to account for the conversion rate and other factors. 4. Outcome: If the stock price decreases, the value of the short position increases, offsetting any losses on the bonds. If the stock price increases, the arbitrageur can convert the bonds into equity and profit from the undervalued purchase price of the bonds.

Understanding Block Deals In today's dynamic market landscape, block deals are gaining prominence. But what exactly are they? Block deals involve the buying or selling of a large number of securities, typically in one transaction, often negotiated privately between two parties. These transactions can significantly impact stock prices and market sentiment. Why are they happening more frequently nowadays? Efficiency: Block deals offer a quicker way for institutional investors to execute large trades without disrupting the market. Market Liquidity: Amidst volatile markets, block deals provide a way for investors to quickly enter or exit positions without causing substantial price movements. Strategic Moves: Companies may engage in block deals for strategic reasons such as restructuring, acquisitions, or divestitures. Regulatory Changes: Shifts in regulations can also influence the prevalence of block deals. Understanding block deals is crucial for investors, as they can signal significant movements in stock prices and overall market sentiment. Stay informed and adapt your investment strategies accordingly. #Investing #BlockDeals #MarketInsights #finance #personalfinance

Way to go Calder Capital team! If you have a business that you would like to buy or sell - let's talk! #growth #buyside #sellside #investmentbanking

The SPAC Comeback: The Big Point The Rabid Capitalist: The Big Point is a summary of a detailed note available to paid subscribers. Despite the recent turbulence in the markets, investors’ risk appetite is building. The reemergence of special purpose acquisition companies (“SPAC”) is one sign of exuberance. While initial public offerings of SPACs have staged a rebound, these transactions are nowhere close to the peak reached in 2021. Complete content is available for a $15 monthly subscription. Click here to subscribe: https://lnkd.in/eKu99W_u

NCRC's comment letter, supported by 138 community organizations, urges regulators to block the Capital One-Discover merger. This merger threatens to reduce competition and harm consumers. Let's stand together for fair banking practices. #ConsumerProtection #FairBanking #JustEconomy