4 ms·
Aren't SPACs just nonoperating shell companies that own only cash? I thought the whole point of them was to be allowed to disclose nothing and report nothing.
by freshhawk 5y ago
Aren't SPACs just nonoperating shell companies that own only cash? I thought the whole point of them was to be allowed to disclose nothing and report nothing.
- chrisgd 5y agoIn the merger process, the target can issue more information and forward projections. In an IPO, you cannot issue forward projections. The point of the SPAC is to take companies public that are more forward oriented. As they are learning though, it is hard to be a publicly traded company. You still have to comply with regular SEC requirements once the merger is complete.