Private companies with cutting-edge technology have become particularly attractive targets for special purpose acquisition companies (SPACs). These private companies may choose to go public via SPAC for a number of reasons that include the ability to share projections with investors, better valuation prospects and deal execution certainty. Much like companies that go public by way… Continue reading Post-SPAC Technology Company Hit with Securities Class Action
Tag: IPOs
Billionaire and Celebrity Endorsements Lure Retail Investors to the SPAC Craze
Kunkle, of Philadelphia, runs a website for options traders. He’s used to spending his days talking about trades with people who see themselves as being on the vanguard of investing trends. So he was struck last month when he got a text about a special-purpose acquisition company — or SPAC — from his mother, who… Continue reading Billionaire and Celebrity Endorsements Lure Retail Investors to the SPAC Craze
Investors in SPACs Need to Know the Real Deal: Bloomberg Editorial
It’s hard to believe anyone would pay $10 for $7 worth of a company’s shares. Yet that’s roughly what a lot of investors have been doing, by participating in a financial innovation known as a special purpose acquisition company, or SPAC. See related article. People have every right to give away their money. But the… Continue reading Investors in SPACs Need to Know the Real Deal: Bloomberg Editorial
Endless Boom in Blank Check Companies Is Wearing Out Insurers
The SPAC boom is overwhelming a key player in the creation of a blank-check companies: insurers. Firms selling directors-and-officers liability policies for special purpose acquisition companies have been flooded by the listings that surged last year. That’s caused insurers to ratchet up their prices and seek ways to control their exposure to SPACs — moves… Continue reading Endless Boom in Blank Check Companies Is Wearing Out Insurers
More Choice for IPO Lawsuits in U.S. Spur 200% Increase in D&O Insurance
Companies going public in the United States face insurance costs that have increased as much as 200% in the last three years to cover their executives against lawsuits alleging they misled investors. A rise in securities class-action cases involving initial public offerings is spurring IPO insurers to double and triple prices for directors and officers… Continue reading More Choice for IPO Lawsuits in U.S. Spur 200% Increase in D&O Insurance