SPAC Merger Listings
SPAC merger listings are available to high growth companies from anywhere in the world.
A SPAC is a public shell company that is listed on NASDAQ or the NYSE.
Many private companies prefer SPAC merger listings versus IPO, to reduce the costs & risks of going public.
The SPAC’s IPO investors have the option to get a refund, resulting in high uncertainty regarding how much of the SPAC’s IPO capital will remain after the merger.
For key funding requirements, the company can do a private placement simultaneously with the SPAC merger.
Not all SPACs are equal, key distinguishing factors include the SPAC management’s expertise & ability to add value and the composition of the SPAC’s investor base.
Bear market conditions have forced SPACs to abandon consideration of pre-sales businesses. Today SPACs are seeking high growth companies with material sales and earnings.
Special Purpose Acquisition Companies (“SPACs”) were originally created in 1992 when the SEC adopted a rule requiring that money raised in public shell IPO’s must be held in a trust account until the company acquires a target business.
The emergence of SPACs in recent years is largely due to the challenges of IPO’s, which include several million dollars in professional costs and no guarantees, Market conditions change and a lot of IPO’s fail, causing many million dollars in sunk costs and no public listing.
SPAC listings mitigate these risks. With a SPAC merger, the target company is assured of being listed. After that, success will be based on company earnings growth. The market rewards companies that meet their projections and punishes the rest.
In addition to IPO and SPAC merger, direct listings are now allowed on Nasdaq an NYSE. Direct listings are possible when a company already has a large shareholder base. Millennium client CMGE was the first company to go public on NASDAQ by direct listing, spinning off CMGE from its Hong Kong listed parent.
MILLENNIUM has over 25 years experience helping companies from around the world to list on Nasdaq and the NYSE
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Millennium represents and advises preIPO companies that are seeking to become listed on NASDAQ or the NYSE.
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