The SEC is making decisions and issuing guidance about SPACs that may be based on misconceptions, Bloomberg Law reports, citing Daniele D’Alvia, CEO of SPACs Consultancy in London, and Milos Vulanovic, associate professor at EDHEC Business School in France. They question why the SEC is not issuing new improvements for traditional IPOs.
“The SEC’s concern about competition issues involving the business combination opportunities is unrealistic,” they note. “A closer look to S-1 forms clearly shows that today, we do have sector focused or multi-sector focused SPACs. Competition might only emerge in the latter, although the number of potential targets are infinite, and competition (if it exists) extends far beyond American borders to Europe (see Arrival and Cazoo in the U.K.) up until Asia (see Grab in Singapore). The world is the SPAC’s oyster.”
The warning on warrants does not have an implementation period. “We think that this is not sound decision and represents an attempt to stop SPAC-frenzy,” they said. “And it did, unfortunately.” Read more.
