SEC-PR-2412-199 (Dec. 12, 2024) (SEC-PR-2412) SEC Charges Cantor Fitzgerald Over Misleading SPAC Disclosures Excerpt: Washington D.C., Dec. 12, 2024 — The Securities and Exchange Commission today charged global financial services firm Cantor Fitzgerald, L.P. with causing two special purpose acquisition companies (SPACs) that it controlled to make misleading statements to investors ahead of their initial […]
Category: Special Purpose Acquisition Companies
A Special Purpose Acquisition Company (SPAC), often referred to as a “blank check company,” is a publicly traded corporation specifically created to raise capital through an initial public offering (IPO) with the intent of acquiring or merging with an existing private company. SPACs typically have a two-year lifespan to identify a target company for acquisition, after which they must either complete a merger or return the funds to investors. The process allows private companies to go public without the traditional IPO route, providing them with quicker access to capital and a streamlined regulatory process. Investors in SPACs buy shares based on the reputation of the sponsors and the potential of the target company, but they face risks, including the possibility of the SPAC failing to find a suitable acquisition. Overall, SPACs have gained popularity as an alternative method for companies to enter the public market, especially in sectors like technology and healthcare.
♦ (SEC) (www.sec.gov) – “Special Purpose Acquisition Companies, Shell Companies, and Projections“
♦ (SEC) (www.sec.gov) – “Ready to Go Public?“