written by reader Social Capital Hedosophia Holdings Corp

By allen1942, October 10, 2017

just visited the schhc website and am confused about what this investment is about. I was under the impression that thet hadn’t invested in anything and was a blank check ompany, but when I went on the website there were many companies in their portfolio. ’Seems a lot like Share post 100 fund. Anyone have any other ideas?

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SoGiAm
Irregular
October 10, 2017 11:05 pm

Social Capital Hedosophia (IPOAU) https://www.stockgumshoe.com/2017/09/buying-an-ipo-again/
and
https://www.stockgumshoe.com/personal-portfolio-irregulars-only/
Long Gummunity, Sharing and Caring! #Best2ALL

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Travis Johnson, Stock Gumshoe
October 11, 2017 2:36 pm

Social Capital is an established VC fund, and they have made a lot of investments over the years. This new vehicle, Social Capital Hedosophia, is a joint venture between Social Capital and Hedosophia and is itself a blank check/SPAC — essentially, it’s $600 million that the managers intend to use to help a “unicorn” tech company go public without the onerous IPO process. They have not yet done anything, they have two years to either do a deal or return the escrowed money (roughly $10 per share) to shareholders, the “juice” comes if they do a great deal and then the long-term warrants that are attached to the SPAC (one third of a warrant per IPOAU) become extra-profitable over time, though those warrants are worthless if they don’t do a deal (or they do a bad one).

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