4 ms·
Republic looks to be some form of VC funding. The whole point of a SPAC is to take a company public without filling for an IPO.
by gen3 5y ago
Republic looks to be some form of VC funding. The whole point of a SPAC is to take a company public without filling for an IPO.
- failwhaleshark 5y agoSo it's a "stock market" bypassing public-trading so it doesn't have to abide by SEC, SOX, etc.?
- gen3 5y agoThe SEC does have rules pertaining to privately traded investment. They are normally more lax than for publicly traded companies, and therefor normally require the investors be accredited. The investor is expected to preform more due diligence. https://www.investopedia.com/terms/a/accreditedinvestor.asp https://www.investopedia.com/terms/a/accreditedinvestor.asp If you are confused about how SPACs work, and the OP article didn't help, the investopedia is good https://www.investopedia.com/terms/s/spac.asp https://www.investopedia.com/terms/s/spac.asp
- URSpider94 5y agoA SPAC is basically a vampire company that is publicly traded, but which has no operating business. Its sole purpose is to merge with another company, usually a private company, by expending its founding capital to buy the target. After the merger, the private company is now public - it trades on an exchange, has to file 10K’s, has to abide by Sarbanes-Oxley, etc. It’s a mechanism to take a private company public without an IPO. That’s all.