What’s the Buzz Around $ESSC?

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EXECUTIVE SUMMARY

Let’s take a look at a SPAC that has generated massive interest and buying over the last few weeks. East Stone Acquisition Corp, which is set to take JHD Holdings public is a high redemption SPAC that may see a Gamma Squeeze.

DETAILS

Let’s take a look at a SPAC that has generated massive interest and buying over the last few weeks. East Stone Acquisition Corp (ESSC US), which is set to take JHD Holdings public is a high redemption SPAC that may see a Gamma Squeeze. While SPAC traders aren’t strangers to high-redemption SPAC plays, what makes ESSC so interesting is that it has a NAV floor is still in place, and one of the lowest free floats on the market after the SPAC made several backstop agreements. Let’s take a closer look at the deal to understand the specifics and the opportunity to profit.

Background About the Deal 

East Stone Acquisition Corp announced a definitive agreement to merge with China’s merchant enablement services platform JHD Holdings limited, at a $1 billion valuation (subject to certain adjustments for cash and debt). For those unfamiliar, JHD operates in China under the brand name Ji Hui Duo and offers an online and offline merchant enablement services platform in emerging cities in China.

East stone acquisition corporation

The platform gives merchants a full suite of services and technologies, including point-of-sale, supply chain logistics, and payment capability. Established in 2016, the company’s platform serves over 95,000 independent merchant stores (as of June 30th, 2021). The platform has also enabled 3,000 outlets to become licensed rural financial institutions, enabling banks to extend their brand network to serve most customers.

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Originally Posted on December 29, 2021 – What’s the Buzz Around $ESSC?

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