SPAC CEO Says Not all SPACs Created Equal — Some Companies Went Public “Prematurely”

Only a few insurers provide such coverage, and those that do charge a high premium, which could make it difficult for SPAC sponsors.

Resources such as connected advisors and teams with appropriate in-depth expertise in the sector and geography detailed in the thesis will be important. Profound knowledge of the players in the space will also be essential in decreasing the risk for targets and increasing the successful exit rate for future combinations.

Nasdaq asked the SEC to remove any ceiling on how shares trade. A company's stock would not be allowed to open more than 20% below the lowest price in the price range, but there would be no restriction on how high it can trade.

The suit alleges the SPAC was structured to reward sponsors for even a bad deal.