SPACs & us

On top of our tech-based & search-driven venture building activities, we also build blank check companies also called Special Purpose Acquisition Companies (SPACs) whose business purpose is to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses globally, more particularly in the US, Europe and emerging markets.

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What's a SPAC and how does it work?

A SPAC is formed for raising capital through an initial public offering for the purpose of acquiring one or more operating companies, as well as assets, intellectual property or technologies. The SPAC raises the funds through a public offering typically on the NASDAQ, the NYSE or the Euronext (Amsterdam ; Paris).

 

A SPAC requires an experienced board of directors and a management team, who take part in the team of the founders, together with a pre-IPO equity investor (generally referred to as Sponsors), who invests approximately five percent 5% of the capital in a private placement simultaneously with the IPO.

 

Sponsors typically receive five-year warrants in exchange for their investment. SPAC founders receive 20% of the fully diluted equity and, in addition, five-year warrants in exchange for their investment. Sponsors’ initial pre-IPO investment is kept on escrow accounts or blocked accounts until the day of IPO realization by our vendor / partner in charge of this activity. In case of a SPAC’s or IPO’s failure, Sponsors’ investments are returned to the Sponsors.

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Our target focus

While each Company may pursue an initial business combination with a company in any sector or geography, the Company intends to focus its search on companies in Disruptive Technology, Biotech & Pharma and Real Estate globally and more particularly in the US, Europe and emerging markets.