During the special purpose acquisition (Spac) mania of the past year or so, many criticisms have been levelled at this practice of taking a company public via a cash shell versus a traditional initial public offering.One of these critiques has centred on disclosure — in the US, unlike with a traditional IPO, Spacs are allowed to make forecasts about how they reckon their businesses will develop in the future. This is because of a technicality in the SEC rules: a Spac is a considered a merger rather than a public offering, and therefore is not subject to the same rules as a vanilla listing would be. (More on this in Institutional Investor here.)Arguably, for a business with zero revenue, the ability to make these projections is a God-send. Forecast in your investor deck
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During the special purpose acquisition (Spac) mania of the past year or so,...