Back in 2021, a Special Purpose Acquisition Company (SPAC) ran from $10 to $60 nearly overnight.
The ticker was CCIV, and the rumor was they were going to bring Lucid Motors to the market. I made the call to get bearish into the news as the SPAC vehicle had moved entirely too fast, and any definitive agreement would cap the upside on the stock.
Here’s what happened:
The SPAC mania left many investors with a hangover and a drawdown of 80%…
But hey, at least the companies got funding.
Over the past few years, these SPAC names have deflated, and others have fallen apart due to busted deals.
But I’ve found one that appears to have all the bad news priced in – plus an incredible product that insiders believe in.
Insiders Keeping Abreast of This Firm’s Breakthrough Development
I’m a man, which means I’m at low risk for breast cancer.
It also means I don’t get mammograms… but from what I hear, it’s not the most comfortable process in the world. The technician squeezes the breast tissue so they can shoot X-rays through cells to find any evidence of breast cancer.
The wild part is that 10-15% of all mammograms have false positives. That means the doctor will call you back for additional tests, leaving the patient wracked with worry that they’re going to have a full-blown cancer diagnosis.
It’s no wonder more than 40% of women report serious anxiety about getting this screening…
But one company is changing that.
They’ve developed an ultrasound device that can take a 3D image of the breast tissue. The patient simply lies down into a warm water bath and lets the machine do the work.
No uncomfortable squeezing, no radiation… and less patient anxiety and improved false positive rates. It seems like a great invention – so why has the stock been killed?
Predatory SPACs
In SPAC land, you’re going to have the sponsor that fills a shell company with cash, and then does a reverse merger to bring the company to market. Some SPACs do well, others are busts, and others are raging dumpster fires.
In this case, the sponsor lit the match.
In September 2023, it filed a lawsuit against the imaging company, claiming they violated the merger agreement. They claim the company was engaging with other suitors, violating their exclusivity clause.
The lawsuit was dropped, but that’s not a good look as the company gets ready to complete a reverse merger.
When the merger was announced in 2022, there was an expectation that the company would pull in $41 million in cash from the sponsor, which assumed no redemptions. Then the minimum cash condition was removed.
I can’t prove it 100%, but I think the sponsor just dumped shares onto the market, sending the price from $10 to under $1 in very short order.
It appears the company raised under $6 million instead of a much higher amount needed:
So we have a company with a great product, but a terrible stock structure that’s bleeding cash and still has some regulatory hurdles to clear. So why the heck are we looking at this name?
Insiders Are Backing Up the Truck
In November 2024, the company hada private placement funding round. The total amount was about $2.6 million, and it was ALL from insiders.
The chairman of the board put down $1.8 million, and two directors put in $300k combined. This is a huge signal.
Now couple that with the same chairman buying $1.6 million in March 2025, followed quickly by another $250k buy. The CEO also picked up $250k worth.
Many of these positions are a combination of equity and warrants. Warrants are kind of like call options, where you have the right to buy at a given strike price – this time at $0.67.
This makes the stock a great “option-like” setup, where it’s either going to dilute itself into dust, or the product is solid enough to give distressed equity investors the chance at earnings multiples of their capital.
I’ve already sent the full trade alert to my members. I believe the FDA approval process will be what makes or breaks the stock… and if the new FDA admin is more accommodative to new treatments, this name has a shot at serious upside.
If you’d like to learn more about how we’ve followed similar setups from company insiders to stock moves of 115% in 60 days, 90% in 24 days, and 88% in seven days…
And option gains of 443%, 520%, and an astounding 1,091% – all in a matter of a few days to a few weeks – click right here to view a free training video where I’ll walk you through it and give you details of three more insider opportunities we’re tracking right now.
Original Post Can be Found HERE
