MUST READ: A PRIMER ON SPAC

Here I found a very interesting article on SPACs:

A Primer On SPACs by SPACResearch on SeekingAlpha

Summary of the article:

Special purpose acquisition companies (SPACs) are an underappreciated asset class and present compelling risk/reward opportunities.

It's important to understand the dynamics at work as a SPAC seeks an acquisition target.

Handicapping a SPAC's set of potential outcomes is imperative for evaluating an investment.

This article is intended as an introduction to investing in SPACs (special purpose acquisition companies). SPACs are a compelling investment vehicle, with features that are both enticing and opaque. Our research focuses on the structural elements of SPACs that create investment opportunities, as well as the specifics of SPAC transaction details which allow for the handicapping of outcomes for individual SPACs. My goal is to broaden the base of investors who are interested in SPACs and to facilitate easier evaluation of the securities available under this umbrella.

It's always useful to spend some time evaluating a SPAC's management team. Read through the track record and bios of the SPAC's officer roster. Do they have a history allocating capital at scale? Do they have a history securing financing? Do they have experience managing public companies? What is their background and performance in the area in which the SPAC is searching for a business combination? Sponsors are also generally happy to discuss their approach if you call and ask sensible questions.

I cannot stress this enough!

Read the full article on SeekingAlpha.