EdtechX Trading Like the Next Virgin Galactic?

EdtechX Holdings (EDTX), a SPAC that just completed its purchase of a Chinese online education company, is flying today, March 27th.

The common stock is VERY thinly traded. And the move higher has been on very thin volume.

The move reminds me of pops in Virgin Galactic (SPCE), or maybe more closely Phunware from just over a year ago.

Edtech has purchased Meten, an omnichannel English language educational company. Meten offers both online learning as well as personal tutors.

For warrant investors the question is how high do the warrants trade in relation to the stock. As a newly completed SPAC acquisition, the warrants are not yet exercisable. But, should trade higher to some degree with the common.

Recent examples of non-exercisable warrants that move to some undetermined degree with the stock are, as mentioned above, Virgin Galactic and Vivint Smart Homes.

While Virgin Galactic warrants traded at a premium to the common for much of the stock’s rise, VVNTWS has traded mainly at a discount.

EDTX, and EDTXW, at this point, seem closer to Phunware, than either a Vivint or Virgin Galactic. This is mainly due to the extremely low trading volume in the common.

Warrant Observer members got a heads up on this warrant yesterday (3/26), where I have a long position.