A special purpose acquisition company (SPAC) is a company with no commercial operations that are created to raise capital through an IPO to acquire another company. The SPAC is also called for that reason a “blank checkcompany” as it will use the money provided by investors to enable privat...
The reality is you know the reputation of some of the people involved [in the SPAC], but you don’t know what eventually they will propose buying: what the company is and what the terms of the deal will be,” said Jay Ritter, professor of finance at the University of Florida. The ...
A SPAC is a non-operating “shell” company created to raise capital to acquire an existing company. A SPAC is also known as a “blank check company” designed to take companies public without going through the traditional IPO process. SPACs are generally formed by a team of sponsors with e...
SPACs also have certain limitations that traditional IPOs don’t encounter. For instance, a SPAC has tospend 80% of its fundson one transaction. And, asone financial expertat Tuscan Holdings noted, “You have three months to get the deal done. You need two years of audited financials and ...
While rare, a SPAC deal can fall apart. If this occurs, parties have the option to renegotiate the terms of the deal or terminate the agreement. Resources for the De-SPAC Transition Between the due diligence phase and the SEC reporting requirements, there is a lot of documentation within...
investors will receive their money back. But the risk capital invested by sponsors to maintain the SPAC’s operations is non-refundable, so they make both a financial and reputational loss. This provides a great level of motivation for sponsors to get a deal done in the allotted time period....
However, SPAC sponsors also have a deadline by which they have to find a suitable deal, typically within about two years of the IPO. Otherwise the SPAC is liquidated and investors get their money back with interest. 9:12 What is a SPAC? Why are SPACs suddenly popular? SPACs have been ...
Out of all the coolest inventions of the year, Times chose Spaceship One as the best.Spaceship One is a 6-meter-long white spaceship.On June 21, American pilot Mike Melvill flew it to space and back about 100 kilometers up into the sky. Some might say it's not a big deal. You ...
Hybrid solar eclipse: The rarest solar eclipse is a combination of a total and annular eclipse (sometimes known as an A-T eclipse) and is produced when the moon's shadow moves across Earth. These begin as one type of eclipse and transition to another. ...
yield shown here. The “locked in” YTW is not guaranteed; you may receive less than the YTW of the bonds in the Bond Account if you sell any of the bonds before maturity or if the issuer defaults on the bond. Public Investing charges a markup on each bond trade. See ourFee ...