The speculative bonanza in special-purpose acquisition companies, better known as SPACs, appears to be dead. Gary Gensler wants to make sure it doesn’t come back to life.
Tag: SPACs
SPAC Mania’s Ugly End Yields $46B in Investor Losses
Wall Street’s affair with blank-check firms, the finance fad that pushed companies onto the stock market during the Covid-19 pandemic, ended this year with a string of big bankruptcies and even bigger losses for shareholders.
Businesses Burned through SPAC Money, Now They’re Running Out of Funds
The SPAC boom took hundreds of risky companies to the stock market. The next stop for many is bankruptcy court.
Great SPAC Crash of 2022 Deepens as Investors Cash Out
The great SPAC crash is bringing the year to a close in dramatic fashion, as more shareholders prepare to exit the speculative-investment industry for good.
Global Banks Withdraw from SPACs After Creating Blank-Check Frenzy
Only a few years after helping to create a massive market for blank-check companies, banks are backing away from the deals, fearful of the risks. According to Bloomberg, Goldman Sachs Group Inc. is ending its involvement with the majority of the special purpose acquisition companies it took public and halting new SPAC issuance in the… Continue reading Global Banks Withdraw from SPACs After Creating Blank-Check Frenzy
U.S. Regulators Tighten Rules on SPAC Deals
U.S. securities regulators proposed new rules for shell investment companies on Wednesday, tightening a path for companies to go public that has been criticized for sacrificing investor protections. The new rules aim to put firms formed solely for the purpose of merging with another entity, known as special purpose acquisition companies (SPACs), on an equal… Continue reading U.S. Regulators Tighten Rules on SPAC Deals
Some Insurtech Companies Get Multibillion-Dollar Valuations
A number of insurtech startups are coming to market through blank-check companies. Here are valuations of several that have announced special purpose acquisition company (SPAC) plans. COMPANY IMPLIED ENTERPRISE VALUE CCC Information Services Inc $7.0 billion Hippo… Continue reading Some Insurtech Companies Get Multibillion-Dollar Valuations
Kin Insurance to Go Public Via Matt Higgins SPAC Deal
Kin Insurance Inc., an insurance-technology startup that counts golfer Rory McIlroy among its investors, has agreed to go public through a merger with Omnichannel Acquisition Corp., a blank-check firm led by Matt Higgins, a longtime investor who has appeared as a “Shark Tank” judge. “We were searching for a digitally fueled business that was going… Continue reading Kin Insurance to Go Public Via Matt Higgins SPAC Deal
Wall Street Grapples with New SPAC Equity Contracts after SEC’s Crackdown
Wall Street accountants and lawyers are trying to figure out new equity agreements to lure investors back to the blank-check company market after the U.S. regulator cracked down on the use of warrants, six industry executives told Reuters. They are discussing jettisoning warrants issued by special-purpose acquisition companies, or SPACs, in favor of rights agreements,… Continue reading Wall Street Grapples with New SPAC Equity Contracts after SEC’s Crackdown
Tick-Tock: SPACs Increasingly Under Pressure to Find Quality Mergers
Blank-check companies, aka special-purpose acquisition companies (SPACs), already have stiff competition in finding firms with which to merge. Now, with recent share-price declines and a ticking clock to take companies public, the pressure to do so is ramping up even more. The new challenges for creators of SPACs result in part from the abundance of… Continue reading Tick-Tock: SPACs Increasingly Under Pressure to Find Quality Mergers