In the last year, there has been an unprecedented surge of special purpose acquisition company (SPAC) formations. This has attracted a lot of attention to the SPAC space, from the sponsor side (traditional private equity firms, athletes, and celebrities) to the investor side (hedge funds and retail traders).
SPACs: A Convenient Anesthesia for FOMO
As with most financial market crazes, the fear of missing out motivates buying and selling en masse. The market’s current fantasy with special-purpose acquisition companies (SPACs), a financial instrument mired in a suspicious past, may just be another instance of this phenomenon.
SPAC deals attract younger, less-funded digital health startups
The prospect of companies hitting the public markets before they’re fully prepared creates the possibility for failure, according to Rock Health.
Interest in SPACs—Special Purpose Acquisition Companies—is booming…and so is the risk of litigation.
Following these ten steps will prepare SPAC boards, sponsors, and advisors for the likely shareholder suits and potential regulatory investigations that are increasingly becoming part of the SPAC landscape.
SPACs and Covid spark M&A frenzy not seen since the dotcom boom
Deals worth $1.3tn were struck in the first quarter of 2021 in a year-to-date record driven by a number of mega deals and the surge in SPACs.
SEC Statement: Financial Reporting and Auditing Considerations of Companies Merging with SPACs
In recent years, we have seen significant market developments and innovation in our capital markets, with a variety of structures being utilized to raise capital and facilitate taking private companies public.
SPAC Boom Hits $1.3 Billion For Q1
Global mergers and acquisitions (M&A) have seen their strongest developments in four decades in the first quarter of this year as special purpose acquisition companies (SPACs) keep doing well, the Financial Times (FT) reported.
Wall Street frenzy over shell companies draws attention of SEC
The shell companies that many private firms use to go public on the country’s stock exchanges have been all the rage on Wall Street for more than a year.
SPACs IPO Explained
Now, you may have never heard of this type of investment vehicle, but they are making an impact on the finance sector of the cannabis industry.
SPAC Market Discount Deepens; More to Come?
Over 35% of pre-deal SPAC units closed under $10 and just over 50% of pre-deal SPAC common did the same.
SPACs: Are You Really Ready To Commit?
SPAC transactions are on a meteoric rise. In 2020, there were approximately 250 SPACs that, combined, raised $76 billion and made up almost half of all Initial Public Offerings (IPOs) for the year.
NFTs, Bitcoin, SPACs, Sneakers: Too Many Crazes to Count
The use of special purpose acquisition companies to take startups public has hit astronomical levels. Of the 302 IPOs so far this year, 80% are SPACs.
Hong Kong considering allowing SPAC listings
Hong Kong is exploring whether to allow Special Purpose Acquisition Companies (SPAC) to list in the Asian financial hub, according to a government statement, indicating that a largely U.S. phenomenon could be going global.
What is a Cannabis SPAC?
SPACs were one of the big financial stories of 2020, given that they raised billions of dollars in the second half of the year. Given the amount of money flowing into SPACs, it’s not surprising that the cannabis industry turned to this new trend for financing.
Special purpose acquisition companies grow in popularity on Wall Street during the pandemic
Raising special purpose acquisition companies is en vogue in the COVID-19 economy. From venture capitalist Chamath Palihapitiya to footballer-turned-activist Colin Kaepernick to former House Speaker Paul Ryan, it seems like everyone is taking part in this new variant of initial public offerings.
SPACs: Frequently Asked Questions
Among other things, 2020 will be remembered as a year that saw a boom in the use of Special Purpose Acquisition Companies (SPACs) as a robust alternative to an initial public offering (IPO).
SPAC 101 – Is 2021 the Year of SPACs in Asia? Q&A
On January 27 and 28, 2021, over 300 participants joined Morrison & Foerster’s webinars on “SPAC 101- Is 2021 the Year of SPACs in Asia?” where Partners Mitchell S. Presser, Justin R. Salon, and Ruomu Li led an in-depth discussion on the growing significance of SPACs and their relevance to the Asian market.
Global firms raise $546 billion in January as SPAC frenzy continues
Companies raised $546 billion from new bond and share issues in January, as a flood of central bank money-printing and recovering stock markets brought record numbers of new listings, SPAC deals and share sales, Refinitiv data showed on Wednesday.
SPACs Looking Spectacular in Actively Managed ETF Wrappers
Special purpose acquisition companies (SPACs) remain all the rage on Wall Street, and that theme is trickling down to the world of exchange traded funds. There are now three SPAC ETFs on the market, all of which are recent launches.
Event: TechGC SPAC & Direct Listing Virtual Forum
SPACs and Direct Listings have emerged as a significant new liquidity path for high growth tech companies over the last several months. In this three-day virtual forum for TechGC members, topics will include how to approach liquidity events strategically including evaluating which structure to use, understanding economics / dilution, and how to execute on these transactions.