Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

HLB Merger Arb Setup: How Cancellation Risk Could Lead to Extra Profits

Detailing KRX Market Alerts & Passive Flow Plays

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>Appraisal rights are for HLB Life Science holders only. Record date: April 16. Objection: May 28–June 11. Exercise: June 12–July 2. Spread’s fat—over 11% today.</li>
<li>Swap spread closed at 2.3%. With short selling back, execution looks clean. Classic arb: short HLB Inc, long HLB Life Science, cover with new HLB Inc shares post-merger.</li>
<li>HLB has a cult-like retail base that follows management blindly. Despite headline cancellation risk, real odds may be lower, meaning the swap spread could be seriously mispriced—prime arb setup.</li>
</ul>


Appraisal rights are for HLB Life Science holders only. Record date: April 16. Objection: May 28–June 11. Exercise: June 12–July 2. Spread’s fat—over 11% today.
Swap spread closed at 2.3%. With short selling back, execution looks clean. Classic arb: short HLB Inc, long HLB Life Science, cover with new HLB Inc shares post-merger.
HLB has a cult-like retail base that follows management blindly. Despite headline cancellation risk, real odds may be lower, meaning the swap spread could be seriously mispriced—prime arb setup.


Complete Breakdown of the HLB Merger Swap Details