The popularity of the special purpose acquisition company, or SPAC, has skyrocketed in recent months not only in the US, but also in Europe. Many SPAC IPOs in the pipeline at the moment, particularly on Euronext Amsterdam. In the first part of this publication, I discuss the most important features of a SPAC. I then provide details on the opportunity that investors are offered to sell the shares they buy during the IPO back to the SPAC in the context of creating a ‘business combination’ (BC).
Continue reading the full Financial Investigator Magazine article, “Redemption rights at SPACs.” Reprinted with permission.