10.18.21 | Newsletters
What started as rumblings from regulators about SPACs’ structure and management has now developed into a war on three fronts. To varying degrees, private plaintiffs, regulators at the SEC and FINRA, and Congress have all trained their sights on SPACs. Broadly, each SPAC-attack centers on the same issue: how SPACs compensate sponsors and other early investors and, relatedly, how SPACs communicate those arrangements—and potential conflicts—to later investors. This issue of the SPAC Report examines these challenges and analyzes what each could mean for the future of SPACs.
07.30.21 | Newsletters
What do space exploration, electric cars, and Lady Gaga’s music label have in common? All three were involved in SPAC transactions this year, and all three transactions caught the attention of Gary Gensler’s SEC. These three actions all show the SEC taking a more aggressive approach to regulation, which may result in significant penalties or the interruption of SPAC mergers, reaching even beyond the Earth’s orbit.
06.23.21 | Newsletters
As explained elsewhere, the Special-Purpose Acquisition Company (“SPAC”) has been the subject of significant market activity, with the use of SPACs skyrocketing for several months before recently falling back to Earth. Despite the recent dip in SPAC use, according to data from Dealogic, U.S. SPACs had raised over $100 billion in 2021 alone, with the value of SPAC mergers surpassing $260 billion. In recent months, however, the number of SPACs going public has dropped precipitously, dropping from 116 listings in March down to just 18 in April and 19 in May.