Special Purpose Acquisition Companies (SPACs)
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With their flexible structures, faster access to public markets and attractive pricing, Special Purpose Acquisition Companies (SPACs) play an increasingly important role in capital raising and in facilitating business transactions. But their unique features also can come with unique litigation risk and are attracting regulatory scrutiny. No firm is more experienced nationally in structuring and executing SPAC transactions and in meeting emerging SPAC-related litigation and regulatory challenges head on.
SEC Initiates First Enforcement Proceeding of the SPAC Boom Against SPAC, Sponsor, Merger Target and CEOs
In the SEC’s first enforcement action against a SPAC since the “SPAC boom” took off late last year, the regulator recently announced charges against a SPAC, its sponsor, its proposed merger target and both the SPAC and the target’s CEOs.
Paul, Weiss advised Algoma Steel Group Inc., a leading Canadian producer of hot and cold rolled steel sheet and plate products based in Sault Ste. Marie, Ontario, in its $1.7 billion business combination transaction with Legato Merger Corp., a publicly traded special purpose acquisition company (SPAC).
Litigation partner Geoffrey Chepiga will participate in a roundtable, “Strategies and Pitfalls in SPAC Litigation,” hosted by Expert Webcasts.
Paul, Weiss is representing Bowlero Corp, the world’s largest owner and operator of bowling entertainment centers, in its business combination with Isos Acquisition Corporation.
Paul, Weiss is advising Algoma Steel Inc., a leading independent steel producer with extensive steelmaking and finishing operations in Sault Ste. Marie, Ontario, Canada, in its combination with Legato Merger Corp., a special purpose acquisition company.
Paul, Weiss is advising Redbox, a leading multiplatform destination for new-release movies and entertainment, in its combination with Seaport Global Acquisition Corp., a special purpose acquisition company.
Paul, Weiss is advising Reservoir Holdings, Inc., a leading independent music company, in its combination with Roth CH Acquisition Co. II, a publicly traded special purpose acquisition company with $115 million in trust.
The Staff of the SEC’s Division of Corporation Finance and the Acting Chief Accountant recently issued statements concerning certain key issues that SPACs and potential SPAC acquisition targets should take into account.
- Securities Litigation
- Financial Institutions
- Mergers & Acquisitions Litigation
- White Collar & Regulatory Defense
- Mergers & Acquisitions
- Capital Markets
- Susanna M. Buergel
- Jessica S. Carey
- Geoffrey R. Chepiga
- Lewis R. Clayton
- Andrew J. Ehrlich
- Brad S. Karp
- Daniel J. Kramer
- Gregory F. Laufer
- Raphael M. Russo
- Audra J. Soloway
- Daniel S. Sinnreich
- Michael E. Donohue
- Robert J. O'Loughlin
The explosive growth in Special Purpose Acquisition Companies (SPACs) is starting to generate significant amounts of litigation. In this alert, we survey notable SPAC litigation trends and recommend what SPAC sponsors, directors and officers can do preemptively to minimize litigation exposure.
Paul, Weiss represented Pine Technology Acquisition Corp. in its initial public offering of 34,500,000 units, priced at $10.00 per unit.
Paul, Weiss represented Monument Circle Acquisition Corp., a SPAC formed by Emmis Corporate Communications’ founder and CEO Jeffrey Smulyan, in its $250 million initial public offering.
Paul, Weiss represented Credit Suisse Securities (USA) LLC as underwriter in the $258,770,000 initial public offering of units by Crucible Acquisition Corporation, a newly formed special purpose acquisition company sponsored by the Foundry Group.
Paul, Weiss is representing publicly traded special purpose acquisition company (SPAC) Mosaic Acquisition Corp. in its merger with Vivint Smart Home, Inc., creating a leading smart home public company with an anticipated enterprise value of $5.6 billion.