Colombier Acquisition Corp. III IPO - What You Need to Know

Hey there! If you’re thinking about investing in Colombier Acquisition Corp. III’s IPO, here’s the lowdown in plain English. No fancy jargon, just the stuff that matters.

1. What does this company actually do?

Colombier Acquisition Corp. III is a SPAC (Special Purpose Acquisition Company) – a “blank check” shell company. Its only job is to raise money through this IPO, then find a private company to buy or merge with (like a reverse merger). Think of it as a middleman – they’re not selling products or services yet, just hunting for a business to take public.

2. How do they make money? Are they growing?

Right now, they don’t make money. SPACs like Colombier don’t have real operations – they’re a pile of cash in a briefcase. Their success depends entirely on finding a good company to merge with. If they succeed, the merged company becomes publicly traded, and early investors might profit. If they fail? More on that below.

3. What will they do with the IPO money?

They’ll put almost all the cash into a savings account (a trust) while searching for a company to buy. They have 24 months to find one (or 27 months if they’re already in talks). If they don’t, they’ll return most of your money (about 85-90%) and keep the rest to cover fees.

4. What are the main risks?

• They might pick a dud. If they merge with a bad company, your investment could tank.
• Time crunch. If they don’t find a target in ~2 years, you get most of your money back… but inflation might’ve eaten into its value.
• You have no say. You won’t get to vote on which company they pick.
• Fees add up. The team takes a cut (usually 20% of shares) even if the merger flops.
• Dilution danger: The founders bought their shares for pennies compared to your $10/share. If they merge, your ownership could shrink dramatically. For example: public investors might only own ~60% of the merged company, effectively valuing their shares at ~$6.67 each.
• Conflicts of interest: The team gets $10,000/month from the company for “office space and admin help” (paid to their own affiliate). They can also take up to $1.5M in loans to fund deals – and convert those loans into cheap shares later.

5. How do they compare to competitors?

SPACs are everywhere. Examples include Churchill Capital (merged with Lucid Motors) and Social Capital (Virgin Galactic). Colombier’s edge? It depends entirely on their management’s hustle and connections. Unlike regular companies, SPACs live or die by their team’s ability to find a hot target.

6. Who’s running the company?

The company didn’t provide detailed information about the management team in their filing – a red flag. What we do know:

• Founders loaned the company up to $300,000 for startup costs (which they’ll get back)
• They could earn extra “success fees” for closing a deal
• Their cheap founder shares mean they profit even if the merged company struggles

7. Where will it trade?

The stock will trade on a major exchange (like NYSE or Nasdaq), but the company hasn’t announced the final trading symbol yet. After merging with a target company, the symbol will change.

8. How many shares? What price?

Most SPACs start at $10/share. Each share typically comes with a “warrant” (a coupon to buy more stock later if the price rises). The company hasn’t shared exact details – check their latest filing for updates.

The Bottom Line:

SPACs are speculative. You’re betting on a management team (with little disclosed experience) to find the next big thing – but the deck is stacked in their favor. They get paid even if you lose, and their cheap shares mean they profit from mergers that might hurt regular investors. If you’re okay with waiting 1-2 years, losing ~10-15% in fees, and taking a gamble, it might pay off. Treat this like a lottery ticket, not a savings account.

P.S. The company provided limited details in their filing. When in doubt, ask: Would I hand my cash to a stranger and hope they pick a good investment for me?

🚨 Not investment advice. Always do your homework.