Special Purpose Acquisition Companies A SPAC is a public shell company created to acquire a private company and put it into the public markets. SPACs are also called “blank check” companies, they go public before their acquisition company is discovered. An alternative to an IPO for some startups and a new way to raise capital … Read more
A Special Purpose Acquisition Company Is a public shell company created to acquire a private company and put it into the public markets. SPACs are also called “blank check” companies, they go public before their acquisition company is discovered. An alternative to a classic IPO for some startups and a new way to raise capital … Read more
A SPAC raises capital through an initial public offering (IPO) for the purpose of acquiring an existing operating company. Subsequently, an operating company can merge with (or be acquired by) the publicly traded SPAC and become a listed company in lieu of executing its own IPO.
The obvious advantages that all parties of the SPAC receive cannot be denied. Let’s take a look at the benefits which SPAC sponsors receive after entering the deal making their theoretical risk worth it. First of all, let’s consider different types of SPAC sponsors, traditionally they belong to three main categories: business executives, holding a … Read more
The foundation of a Special Purpose Acquisition Company is not limited to its incorporation. One must also register the SPAC as a blank-check company with the United States Securities & Exchange Commission.