SPAC Roundtable: Will Terms Change?
The current reset moment of the SPAC market has given market participants a time to reflect on the product and possible economic and legal changes to it—notwithstanding recent signs of a comeback of the market for SPACs. Please join us for our first in a series of SPAC roundtables as our experienced panelists dive into some of the key issues in the world of SPACs.
- What changes can we expect in the SPAC market and the basic structure of a SPAC and the de-SPAC'ed company given what has preceded us?
- What explains the wide-ranging difference in stock price performance in post-merger SPACs (the de-SPAC'ed company)?
- For example, in the future, will the market value SPACs and de-SPAC'd companies differently, by taking into account the degree of dilution represented by sponsors' shares and promote and the amount of fees charged? If so, will there be a shift in the allocation of value among sponsors, investors and target companies with respect to sponsor's promote and warrants?
- What economic impact will the expected rise in enforcement and litigation actions have on valuations?
- If the SEC begins to require enhanced disclosure regarding projections in the proxy statement/prospectus for the de-SPAC transaction, will deals change?
- Jonas Grossman, President and Managing Partner, Chardan, an independent global investment bank specializing in SPACs
- Michael Klausner, Professor, Stanford University; co-author of "A Sober Look at SPACs"
- Thomas McHale, Co-Founder and Managing Partner, Gritstone Asset Management LLC
- Adam Sokoloff, Chief Executive Officer of USHG Acquisition Corp., a SPAC
- Eric Ver Ploeg, Venture-Focused SPAC Sponsor, LightJump Capital