Special Purpose Acquisition Company
What is a Special Purpose Acquisition Company – SPAC?
A special purpose acquisition company (SPAC) is a publicly-traded company that raises a blind pool capital through an initial public offering (IPO) for the purpose of acquiring an existing company. The money raised through the IPO of a SPAC is put into a trust where it is held until the SPAC identifies a merger or acquisition opportunity to pursue with the invested funds. Shares of a SPAC are typically sold in relatively inexpensive units that include one share of common stock and a warrant conveying the right to purchase additional shares or partial shares.