The SEC has recently proposed various new rules surrounding disclosure and investor protection requirements for SPACs. These rules will ultimately make it harder for SPACs to generate revenue from investors by further disclosing information regarding business combination transactions between SPACs and private operating companies, including disclosures relating to the fairness of these transactions. The overall goal of these amendments is to force SPACs to meet similar regulatory guidelines as IPOs.
Christopher Warren, Managing Partner at Warren Law Group, states, “These updated amendments from the SEC are completely expected as Gensler has targeted special-purpose acquisition companies within the past year. These rules are ultimately designed to protect SPAC investors and give them the same protection rights as IPOs, but come at a cost and regulatory risk if not prepared by an experienced regulatory attorney.”
If you’re the principal or an investor of a SPAC and would like a consultation, call the attorneys at Warren Law Group at (866) WLGROUP or email email@example.com.