What’s a SPAC?
Have you seen this acronym floating around financial media in 2021? It’s becoming more and more prominent when it comes to takeovers and listings, particularly in the US markets.
It stands for Special Purpose Acquisition Company. Here are some of the things you need to know about SPACs and how they operate.
Why are SPACs set up?
SPACs are setup with the intention to buy another company. They are listed on a US exchange, raising a significant amount of money for the purpose of buying another company within the next two years. A SPAC has no actual business operation to speak of until they purchase an operational company.
Who can invest in a SPAC?
Investors in SPACs can range from reputable private-equity funds to everyday investors.
How long does a SPAC have to make an acquisition?
If a SPAC does not complete an initial public offering (IPO) in two years, it must return money to its investors. A SPAC is therefore motivated to hustle and find a suitable company to take to the public markets.
Acorns is being listed on the Nasdaq via a SPAC
Acorns, the company that Raiz originated from via a Joint Venture, is soon to go public on the Nasdaq in the US via a merger with Pioneer Merger Corp (PACX). PACX is the SPAC being used to bring Acorns to the market, and the new ticker code will be OAKS when it lists later in 2021. Acorns’ CEO believes that going public will help elevate their story, introduce many more people to the power of compounding and financial wellness, and bring financial literacy to the mainstream. Spactacular!
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The bundll and superbundll products are provided by FlexiCards Australia Pty Ltd ABN 31 099 651 877 Australian credit licence number 247415. Bundll, snooze and superbundll are trademarks of Flexirent Capital Pty Ltd, a subsidiary of FlexiGroup Limited. Lots of names, which basically you aren’t allowed to reproduce without their permission and we need to include here.
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(ABN 26 604 402 815).
