OVERVIEW ON SPECIAL PURPOSE ACQUISITION COMPANIES

How SPAC work

Hello, I found this interesting article why SPAC are an easy, reliable, quick and inexpensive way to raise capital in an IPO. I would like to present you a short overview how SPACs work and what are the benefit for investors and companies which consider going public at Nasdaq or NYSE.

What do investors in a SPAC get in return?

In return for their investment, Sponsors typically receive as much as 25% of the Founder Shares and one warrant for each dollar invested; the exercise price for one warrant is usually USD $11.50. Founder Shares comprise 20% of the fully diluted shares of common stock of the Special Purpose Acquisition Company after the IPO.

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