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.
An SEC warning about SPAC accounting errors has not only chilled the red-hot market but triggered the first of what could be a flood of financial restatements by the popular blank-check companies.
The U.S. securities regulator has opened an inquiry into Wall Street’s blank check acquisition frenzy and is seeking information on how underwriters are managing the risks involved, said four people with direct knowledge of the matter.
Electric vehicle maker Fisker Inc announced Thursday it has completed a reverse merger with the blank check company Spartan Energy Acquisition Corp SPAQ 0.11%.
One of the hottest themes on Wall Street is the proliferation of special purpose acquisition companies (SPACs) and where there’s a hot theme, an exchange traded fund usually isn’t far behind.
CNBC’s Jim Cramer has been bashing SPACs on Twitter and his show this week. That drew attention from the so-called SPAC King Chamath Palihapitiya.
Spartan Energy Acquisition (NYSE:SPAQ) stock came to prominence only a few weeks ago. Prior to the Fisker deal, it wasn’t much talked about outside of niche circles.
If you want to place a bet on who comes out on top in the next Disney (DIS) cartoon, bet on plucky little upstarts. The smaller, weaker outcasts defy the odds and win the day pretty much every day. That’s how it works in the movies. It’s not how it works in the world generally or in special purpose acquisition companies (SPACs). As I wrote in SPAC Size Matters, the best opportunities are in the biggest SPACs.
Even amid plagues, summer is the time for road trips. (Maybe especially amid plagues, when travel restrictions make a terrestrial trip more workable than flying.) But as we head into Labor Day and take a look back at the season, we’ve noticed a distinct lack of road shows.
Blank check IPOs are the latest craze to hit the stock market, with Virgin Galactic, DraftKings and Nikola among the well-known special purpose acquisition companies out there. But what exactly are SPACs?
Reinvent Technology Partners, a new special purpose acquisition company formed by famed investor and serial entrepreneur Reid Hoffman, Zynga founder Mark Pincus and veteran hedge fund manager Michael Thompson, filed Monday for a $600 million initial public offering.
The SPAC market may be getting frothy.
Just like in entertainment, when network executives copycat a hit show format until the market is saturated, investors are flooding the market with special purpose acquisition companies, or SPACs, to scout private companies to take them public.
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