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).
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.
The prospect of companies hitting the public markets before they’re fully prepared creates the possibility for failure, according to Rock Health.
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.
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.
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.
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.
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.
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.
Over 35% of pre-deal SPAC units closed under $10 and just over 50% of pre-deal SPAC common did the same.
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.
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 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.
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.
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.
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).
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.
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.
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.
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.