What Follows an Unspectacular SPAC? SPAC-lash

Quoted in Inc. Magazine, Weaver’s SPAC Practice Leader, Zeeshan Khan, discusses the value of a strong management team and preparing for external accounting scrutiny when going public via SPAC. 

  • Blank-check companies rush to complete deals because they are operating under time constraints, in the form of a warrant, which stipulates that the money must be returned to investors if a deal isn't completed within a defined time frame. Once a company goes public and faces scrutiny, investors then may file what's known as a stock-drop lawsuit, alleging that they were misled by management about the company's value.

"Target companies have to have good management teams that give realistic expectations and growth targets," says Khan.

 

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