Capital Guaranteed SPAC

The Guaranteed Capital  Protection Plan or Guaranteed Capital Protection Feature is structured within the SPAC and implemented through one or more of  the following options: Straddle Strategy:  a simultaneous purchase of options to buy and to sell a security at a fixed price, allowing the purchaser to make a profit whether the price of the … Weiterlesen

Sponsor’s Investment Return

According to Jefferies “SPACs are very compelling for industry executives, as the economics are as or more attractive than traditional private equity fund economics.  SPAC sponsors typically receive 20% of the common equity in the SPAC for an investment of approximately 3% to 4% of the IPO proceeds.  For example, in a $250 million SPAC, … Weiterlesen

Restoring the IPO Value Creation

Many do not understand the reasons why the Initial Public Offering of a share of common stock (also known as “IPO “) increases the financial valuation of the stock issuing company ? The value creation of an IPO arises mainly from the difference of valuations between the private and public markets. The Private Market values the Assets. … Weiterlesen