Words: Tom Ward
Celebrity-backed SPACs are everywhere at the moment.
Not exactly sure what a SPAC is (celebrity-backed or otherwise)? Then let’s start at the start; a special purpose acquisition company (SPAC), also known as a ‘blank-cheque company’ is an investment vehicle that operates like a corporate shell in order to take a company public.
Why? Well, SPACs allow company owners to swerve IPO regulations which can make it easier to generate a lot of cash quickly. The owners of the SPAC will then use this cash to invest in another company.
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