SEC Adopts Final Rules Concerning SPAC Initial Public Offerings and de-SPAC Transactions

On January 24, 2024, the US Securities and Exchange Commission (SEC) adopted final rules (Final Rules) related to initial public offerings (IPOs) by special purpose acquisition companies () and business combination transactions between SPACs and private operating companies ( transactions). These Final Rules, designed to enhance investor protections in relation to and de-SPAC transactions, create significant new disclosure obligations for SPACs and expand potential federal securities law liabilities for SPACs and SPAC transaction participants. The Final Rules are substantially similar to the proposed rules published by the SEC in March 2022, except as discussed below. Throughout this article, we take a deeper dive into the Final Rules and their implications for SPAC IPOs and de-SPAC transactions.
Source: SEC Adopts Final Rules Concerning SPAC Initial Public Offerings and de-SPAC Transactions