Pretend Projections.

The CEO of Diginex (EQOS) pretended they don't have any last week.

I’m doing some work on crypto stocks so attended a webinar for investors with the CEO of Diginex which aims to be a global exchange of crypto derivative products. It does look like an interesting company and might prove to be a good investment but there’s still more work to do there.

One of the big advantages touted with SPAC IPO transactions is that the company can provide forward projections which give investors more information. But this isn’t so helpful if the management team pretends they never had any projections after the deal is completed.

Back in February, their investor presentation had a slide that clearly contained projections as you can see below.

When asked how the current business was tracking with respect to their projections the CEO responded with “we don’t make forward projections.” In additional questioning, he wasn’t willing to give out figures regarding their current AUM which as you can see are “projected to be $312M” in one year.

Since we go through every SPAC IPO deal over at SPACvest and have captured every projection we know they are a common feature of every transaction.

However, it’s important to remember that these are entirely made up and should be weighted appropriately in our investment process. Our own SPACvest model portfolio is heavily skewed towards companies with substantial existing revenues. Many of the more speculative names rely on revenue projections from 2026 or 2027. Anyone relying on these numbers is likely to be very disappointed, including the SPAC shareholders who have an opportunity to vote with their feet.