SPACSPAC's listing financing method integrates the characteristics and purposes of direct listing, overseas mergers and acquisitions, reverse acquisition, private placement and other financial products, optimizes the characteristics of each financial product, and achieves the purpose of listing financing for enterprises.
Listing in the form of a special purpose acquisition company fully meets the minimum public listing standards set by the US Securities and Futures Commission. Compared with overseas direct listing, special purpose acquisition not only saves time, but also costs much less. Compared with the traditional shell listing, the shell resources of special purpose acquisition companies are clean, and there are no historical liabilities and related legal problems.
The listing process of special purpose acquisition companies;
A special purpose acquisition company is a "shell company" that goes public by raising funds from mutual funds and hedge funds. This "shell company" has only cash and no other business. The promoters listed this "shell company" on Nasdaq or NYSE, and issued a combination of common stock and stock options to market investors in the form of investment units to raise funds.
An investment unit usually consists of 1 common stock and 1-2 stock options. 100% of the raised funds will be deposited in the custody account and invested in fixed-income securities such as treasury bonds. The only task of this "shell company" after listing is to find a non-listed company with high growth and development prospects, merge with it, and make it obtain financing and list.
If the merger is not completed within 24 months, the special purpose acquisition company will face liquidation, and all the funds in the custody account will be returned to the investors with interest of 100%.