After unfettered growth during the pandemic, Special Purpose Acquisition Companies (SPACs) are under greater scrutiny today. The Securities and Exchange Commission (SEC) has proposed new rules and amendments regarding SPACs that, if ratified, would usher in a new era of disclosures and transparency.
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If you’re planning on forming a SPAC in 2022 and beyond, there’s a good chance you’ll face greater regulatory hoops than your predecessors. Now’s the perfect time to ensure your SPAC site that meets regulatory requirements at every step of your merger.
What Are the New SPAC Rules?
As a blank-check company, a SPAC typically avoids many of the disclosure requirements that are expected of the traditional initial public offering (IPO) process. This made them very popular on the Street during the height of the pandemic. In 2021 alone, nearly half of all companies that went public were SPACs.
The SPAC market surged at a time when retail investors (non-professional investors) were growing in size, with a share of assets that today is approaching 25% of all equities.
Unfortunately for retail investors, SPAC has a dismal track record as an investment opportunity. In many cases, institutional investors and bankers sell shares at the end of a SPAC’s lifespan according to their redemption right, leaving retail investors to hold the dilution of the costs.
As a result, the SEC has proposed new rules to strengthen disclosures and increase protections for retail investors in initial public offerings by SPACs and in de-SPAC transaction. This proposal would require greater transparency regarding sponsors, conflicts of interest, and dilution amongst other regulations. For more details, check out the SEC’s Fact Sheet on SPACs, Shell Companies, and Projections.
How a Better SPAC Website Helps You Navigate This New Landscape
Establishing your digital presence is mission-critical to your performance. A special purpose acquisition company IR website is often your investors’ first destination for information your value proposition at every step — from the moment of listing to once you’re a public entity.
While the SPAC market shows signs of losing steam in 2022, it’s still a popular route to the Street. Your challenge is positioning your opportunity as unique and valuable can be challenging without a dedicated site.
A well-designed site can help you curate an evocative story that weaves together all the need-to-know information about your brand in a way that resonates with your target investor. IR site developers can help you refine this story and present it with a sleek site with intuitive design.
More importantly, SPAC website specialists are experts in the unique SEC regulations that govern how your company operates during its initial public offering and later when you’re publicly listed. They provide invaluable guidance on regulations and exchange rules to make sure you can confidently and easily meet compliance, no matter how complicated these rules might become.
With changes coming down the pike for SPACs, it’s critical you adjust your investor relations strategy to reflect the SEC’s new rules. If you aren’t sure how these changes may affect your approach, get in touch with IR consulting specialists for advice. They’ll help you deliver a site that meets current and new compliance standards.