FINANCIAL FREEDOM COUNTDOWN

WHAT IS A SPAC AND HOW TO EVALUATE IF IT IS WORTH INVESTING

SPACs have recently come into vogue with the promise of solving IPO allocation issues for the small retail investor.

Is there a better method to make sure retail investors who are not high net worth clients get early dibs on emerging sectors?

A SPAC is a non-operating “shell” company created to raise capital to acquire an existing company.

A SPAC is also known as a “blank check company” designed to take companies public without going through the traditional IPO process.

Terrain Map
Terrain Map

How Does The SPAC Process Work

Fundraising The SPAC process involves the sponsors raising capital from investors for buying an operating company.

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Creation Of Trust Account

These funds can only be used to complete an acquisition. Or if the SPAC is liquidated, the money in the trust account is returned to investors.

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