Chardan 2008 China Acquisition Corp. Prices $55 Million IPO on Nasdaq (The First Ever) to Target Chinese Company Acquisitions

On August 12, 2008, Chardan Capital Markets has priced its fourth SPAC on the Nasdaq, selling 6,875,000 units at $8.00 each which will trade under the ticker symbol CACAU. This is the first SPAC in history to be filed on, then priced initially on the Nasdaq.

As mentioned previously, Kerry Propper, the owner and chief executive officer of Chardan Capital Markets LLC (formerly known as Gramercy Group), a New York based broker-dealer, has helmed three other SPACS thus far, raising nearly $100 million since his first $25 million SPAC in 2004, Chardan China Acquisition Corp.

This was followed by two SPACs with acquisition territories divided by the Yangtze River priced on the same day in May 2005, Chardan South China Acquisition Corp and Chardan North China Acquisition Corp.

The company will have to effect a business combination within 18 months after the IPO (or within 30 months from the consummation of the IPO if a letter of intent, agreement in principle or definitive agreement has been executed).

Click here for the final prospectus

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

NYSE joins Nasdaq in Proposing Minimum Guidelines for SPAC Listings

Highlights of the guidelines include:

• Minimum $250 million in total market capitalization and $200 million in public float at the time of initial listing
• Minimum of 90% of the IPO proceeds be placed in trust
• Business combination must be undertaken within three years

Click here for more

Nasdaq Proposes Minimum Guidelines for SPAC Listings: Submits Guideline to SEC

Now that Nasdaq and NYSE have had their lunch eaten by AMEX for over a year (55 IPOs have priced on the AMEX since the beginning of 2007 -- think of the lost revenue!), they've decided to jump in the game. In contrast to NYSE's more stringent requirements detailed in a previous post, Nasdaq, its less credible, but more liquid little brother, has proposed the following:

• Gross proceeds from the initial public offering must be deposited in an escrow account maintained by an "insured depository institution,"
• Business combination within 36 months
• Business combination using aggregate cash consideration equaling at least 80% of the value of the escrow account at the time of the initial combination
• Minimum market value of listed securities of $75 million on the Nasdaq Global Market; Minimum market value of listed securities of $50 million on the Nasdaq Capital Market