Shell Company Raises Capital to Underwrite EV Truck-Car Development Using Creative Wall Street Private Equity SPAC Funding Mechanism

A shell company that has no operations called a SPAC or Special Purpose Acquisition Company is
raising capital to invest in Nikola Trucks, Fisker Auto, and other startup transportation.

SPACs are hot right now.
SPAC stands for “Special Purpose Acquisition Company”,
SPACs are shell companies with no operations that allow retail investors.
Companies Invest in a private equity type transaction.
The investment Is in Shell company that IPOs then raise capital –
Shell then buys another private company with real operations.

How does a SPAC Operate?
The SPAC is usually led by an experienced management team .
Composed of 3 members with private equity, M&A operating experience.
Management team of the SPAC typically receives 20% of the equity

How Does SPAC Work?
SPAC offerings are normally sold in $10 units of one common share.
This is along with an out-of-the-money warrant.
Common share price added to the trading price of the warrant.
Give an accurate picture of the SPAC’s performance.
SPAC’s trust accounts can only be accessed.
To fund a shareholder-approved business combination, or to return capital.
Each SPAC has its own liquidation window to complete a merger or acquisition

Company is set up to be acquired by a SPAC.
The SPAC c
an also offer business owners a faster IPO process.
SPACs are sometimes called blank-check company.
Formed as a shell company that has no operations but plans to go public.
Being used by Leading bidder for electric car & truck companies.
Fisker, Lordstown Motors, Nikola, & Hylion  are examples in automotive sector.

Spartan Energy Acquisition Corp (SPAQ) went from $10 to $16.70 in one week.)
Between 85% to 100% of the IPO proceeds raised  are held in trust.
Used at a later date for the merger or acquisition.
Fisker plans to deliver vehicles in 2022 under new company.

From Robert F. Culberson’s Barron’s Enewsletter Posting – July 12 Issue
RF’s Financial News


SPACs Outperform at First, but Postmerger Is Another Story, Goldman Sachs Finds - Barron's

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