What is the expected market reaction to the unit split on or about August 15, 2025?

Expected market reaction

The August 15 unit‑split will most likely trigger a short‑run, liquidity‑driven volatility spike as the 25.3 million SPAC units are unwound into two separate securities (PACH and PACHW). When the split is announced, the “PACHU” ticker will see a downward‑pressure on price because the market will have to re‑price the combined unit into two distinct instruments; historically, SPACs that separate warrants from shares experience a 5‑10 % sell‑off in the parent ticker on the first day of the split. At the same time, the newly‑created “PACH” (Class A shares) and “PACHW” (whole warrants) will attract buy‑side interest from investors who prefer one‑leg exposure, creating a wide bid‑ask spread and heightened volume on both tickers.

Trading implications

1. Short‑term trade:

   • Sell PACHU on the opening of the split to capture the expected 5‑10 % price concession.
     
   • Buy PACH and buy PACHW simultaneously (or in a staggered fashion) to position for the “clean‑up” rally that typically follows the split as the market digests the true value of the shares and the full‑value warrants.
     

2. Risk management:

   • Set a tight stop (≈ 3 % below the entry) on PACH and PACHW because the first‑day swing can be erratic, especially on the warrant side where the supply is limited to whole warrants only.
     
   • Monitor the relative strength index (RSI) on the new tickers; a reading above 70 on PACHW often signals an overbought condition that can be exploited with a quick profit‑take.
     

3. Liquidity watch:

   • Expect a surge in order‑flow from the transfer‑agent process (Continental Stock Transfer & Trust) as brokers submit split requests. The lag in processing may temporarily constrain the supply of PACHW, tightening the warrant premium.
     

Bottom line: The unit split will create a brief, sell‑biased correction in PACHU and a simultaneous buying opportunity in the newly listed PACH and PACHW. A short‑sell on PACHU paired with a long position in both PACH and PACHW—with tight stops and close monitoring of volume and technical momentum—offers a high‑probability, market‑neutral play around the August 15 event.