SPACs May Now List on the NASDAQ; AMEX and NYSE Forced to Eat Their Own Damn Lunch

Yes, we know that this information is a little stale (the release came out on July 25th, 2008), but it's big news nevertheless. In the face of opposition from the North American Securities Administrators Association (historically, the structure of blank check companies makes the offerings risky for investors and SPAC securities have been highly promoted at the IPO stage and in aftermarket trading), the SEC said that it would impose additional criteria intended to protect investors and that it would review each SPAC that applies to list and evaluate the reputation of the SPAC’s sponsors and underwriters.

Final criteria are as follows for Nasdaq listing, all other criteria are similar to previous listings:

• 90% of the gross proceeds from the IPO must be deposited in trust
• One or more business combinations within 36 months
• Business combinations must be at least 80% of the trust

Click here for the release