In a typical SPAC IPO, the company will sell units comprising one share of common stock and a fractional or whole warrant to purchase a share of common stock at a price of $10.00 per unit. The units, shares and whole warrants trade separately.
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A SPAC has a fixed deadline to consummate an IBC, which is typically either the 18- or 24-month anniversary of its IPO closing date. If the deadline is not met, and the SPAC has not obtained stockholder approval for a deadline extension, the SPAC must liquidate and return the per-share trust value to its public stockholders. Each of Pure Acquisition Corp., Trident Acquisitions Corp., HL Acquisitions Corp. and AMCI Acquisition Corp. has an 18-month term to consummate an IBC, while the other six SPACs each have a 24-month term with the upcoming deadlines.
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Of these 10 SPACs, seven have anchor investor arrangements in place to provide for additional private placement investments by their sponsors, affiliates or third parties in connection with an IBC.
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