Get Or Spac Application

The SPAC merger process with a target company may be completed in as little as three to four months, which is substantially shorter than a typical traditional IPO timeline. ingly, a target company must accelerate public company readiness well in advance of any SPAC merger.

The SPAC raises funds by pricing its shares at a reasonable figure, usually $10, and offers other incentives to entice investors. It then has a defined amount of time (usually around two years) to put the investors' funds to work by identifying a suitable target (a private company) either to merge with or to acquire.

SPACs must demonstrate an aggregate market value of $250,000,000, a market value of publicly-held shares of $200,000,000, and have a closing price or an IPO price per share of at least $4 at the time of initial listing.

A SPAC goes public as a shell company using an IPO for the purpose of merging with or acquiring a yet-to-be-identified private operating company.

What is a capital pool company (CPC)? A capital pool company (CPC) is similar to a SPAC but is only permitted to raise up to $10 million. CPCs help early-stage private companies by providing an alternative way to become a public company.

The costs and expenses to set up a SPAC are generally in the range of USD 650,000 to 800,000, depending on what is included in this calculation. About two thirds of the costs and expenses are to be paid by the SPAC founders and sponsors, while the remaining balance is covered from the IPO proceeds.

Reasonable Valuation of at Least $250M As most SPACs are $100M+, with a few exceptions under $100M, we recommend companies only pursue SPAC mergers if they are able to justify a valuation of $250M or greater.

Investors in SPACs range from prominent private equity funds and celebrities to the general public. SPACs have two years to complete an acquisition or they must return funding to investors.