While I certainly enjoy a good Netflix binge, occasionally, I feel the need to watch something educative. This is how I ended up watching \u201cThe China Hustle.\u201d This documentary taught me that between 2008\u20132016 there was a real boom of Chinese companies that went public in the US via a reverse merger. Many of these companies turned out to be a scam.5 years later and reverse mergers continue being popular. The easiest way to conduct a reverse merger is by the creation of a Special Purpose Acquisition Company (SPAC). If you\u2019ve recently come across that acronym, that\u2019s probably due to their increased popularity. SPACs are en vogue with celebrities like Shaquille O\u2019Neal or Paul Ryan (former speaker of the House)starting their own.We\u2019re barely 2 months into 2021 and SPACs have already raised $40 Billion. But how do SPACs operate and what are they good for?How do SPACs work?SPACs \u2014 are also known as \u201cblank check companies.\u201d They raise money through an IPO from private equity firms as well as retail investors.As the name of the SPAC suggests, a SPAC needs to acquire another company and has 2 years to do so. When going public, SPACs won\u2019t usually disclose too much information regarding what company they\u2019re looking to acquire. Reasons for that include avoiding unwanted scrutiny and keeping all options open. Sometimes, SPAC issuers will announce an industry they\u2019re targeting, yet there is no guarantee they\u2019ll go through with it.SPACs don\u2019t have commercial operations. However, they\u2019re allowed to use some of the interest earned on money collected by their shareholders.If a SPAC fails to find a company to acquire within the 2 years time-frame, they\u2019ll return the money to their investors.As soon as a target company is identified, it\u2019ll be publicly announced, and the SPAC will hold a proxy vote in\u2026<\/p>","protected":false},"excerpt":{"rendered":"
While I certainly enjoy a good Netflix binge, occasionally, I feel the need to watch something educative. This is how I ended up watching \u201cThe China [...]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/posts\/3731"}],"collection":[{"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/comments?post=3731"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/posts\/3731\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/media?parent=3731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/categories?post=3731"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/ar\/wp-json\/wp\/v2\/tags?post=3731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}