Redbox Entertainment (RDBX), mcap=$277m, price $6.11 vs $3.73

– Bet on a short squeeze to deflate.
– RDBX is undergoing a takeunder at $0.63/share with no minority shareholder approval required and limited/zero equity value if the transaction fails.
– Shares trade at multiples of the offer price due to limited float and the resulting short squeeze. Expensive/not available borrow.

– Take-under price of $0.67.
– RDBX is insolvent and would declare bankruptcy absent this deal.

Exp. gain: 80% down to the offer price of $0.67/share.

Full RDBX write-up (free guest account required):

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