Doug Ellenoff on SPAC rules proposed by SEC and the future of SPACs

Doug Ellenoff on SPAC rules proposed by SEC and the future of SPACs

At the end of March 2022, the U.S. Securities Exchange Commission published its proposed set of new SPAC rules, which are still in the 60-day public comment phase. The (more or less) revised rules for Special Purpose Acquisition Companies is expected to become binding in October 2022.

In stark contrast to the SEC’s tradition discussing possible issues with the industry prior to any proposed changes of rules, the SEC under its chair Gerry Gensler chose to dash its proposal to the public. The proposed rules and SEC’s reasonings draw a picture as if the SEC has not been involved in making the rules during the last 30 years.

Fintech TV’s host Vince Molinari, in its series “The Podium SPAC Leaders”, talks with one of the most influential persons in the SPAC space since 30 years, Doug Ellenoff, partner of the law firm EGS, Ellenoff, Grossman & Schole about SEC’s current approach and the future of SPACs.

“The market is already working on commercial solutions to overcome any possible averse effects of the new rules for Special Purpose Acquisition Companies”, says Doug Ellenoff. With around 600 SPACs looking for a merger and around 10,000 companies worth to be merged with, SPACs will well continue its appeal for investors as well as for private companies with a promising business to go public.

Important note:
SPAC Consultants is not offering and/or providing investment advisory services in the sense of regulated investment advisory services as per respective EU Directives and their implementation into national law of EU Member States. Instead, SPAC Consultants offers SPAC Project Management services and consults regarding the general principles of US SPACs and their business structuring. Any investment, legal and financial advice that may become necessary for possible sponsors and investors at advanced stages will be provided by the network partners of SPAC Consultants.