Tom's questions to LGL GROUP (LGL) leadership • Q4 2020
Question
Tom of MFF asked for clarification on The LGL Group's investment in its sponsored SPAC, initially believing it was only in warrants. He also sought to confirm his valuation framework, which combined the company's cash balance with the estimated $15 million value of the SPAC investment at $10 per share.
Answer
CFO James Tivy explained that The LGL Group invested in the SPAC sponsor entity, which holds both B shares and warrants, thereby taking on the full risk capital for a commensurate reward. Tivy affirmed the valuation approach, confirming the value includes the $24 million cash balance plus the ~$15 million gross value from the IronNet SPAC deal, and also pointed to additional value from NOLs and the future SPAC franchise.