How a SPAC works?

A Special Purpose Acquisition Company (SPAC) is a type of publicly traded investment vehicle that is created specifically to acquire or merge with another company. SPACs are also sometimes called “blank check companies” because they are set up with the sole purpose of raising capital through an initial public offering (IPO) to later identify and merge with an existing private company.

SPAC Litigation Alert: Kwame Amo v. MultiPlan

On March 25, 2021, a shareholder of MultiPlan Corp. f/k/a Churchill Capital Corp III (“New Company”) filed a class action complaint alleging various breach of fiduciary duty claims stemming from a special purpose acquisition company, or “SPAC,” business combination transaction against the New Company, its board of directors (“Board”), and other related parties.

MultiPlan plunges over 20%

MultiPlan (NYSE: MPLN) shares went down over 20% before ending at to $7.01 on Wednesday. This dive comes after Muddy Waters Research releases a short report titled “MultiPlan: Private Equity Necrophilia Meets The Great 2020 Money Grab.”

Churchill Capital Corp III Stockholders Approve Business Combination with MultiPlan

Churchill Capital Corp III (“Churchill III”) (NYSE: CCXX), a public investment vehicle, announced that in a special meeting held today, its stockholders voted to approve its combination with Polaris Parent Corp., the parent of MultiPlan, Inc. (“MultiPlan”), a leading value-added provider of data analytics and technology-enabled end-to-end cost management solutions to the U.S. healthcare industry, and related matters.

The Rise Of SPACs

One of the very interesting topics Directors are hearing about is a liquidity structure called a SPAC (Special Purpose Acquisition Company). As Directors get invited to join Boards of SPACs or do their diligence if a SPAC is right for their private company, I share some information I think will be helpful.