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28 September 2008

Trevor Scott Releases Corporate Bulletin on Spacs

Trevor Scott, a partner at Farris, has just released a Corporate Bulletin titled The Toronto Stock Exchange Considers Special Purpose Acquisition Companies (SPACs). On August 15, 2008, the Toronto Stock Exchange announced that they are considering permitting Special Purpose Acquisition Companies, commonly known as SPACs. A SPAC is a company formed for the purpose of raising money from the public and then using that money to acquire an operating company. Although SPACs have been in the US market since 1993, they have recently re-emerged and gained popularity. In 2007, 65 SPACs conducted IPOs in the US, raising on average well in excess of $100 million each and representing over a quarter of all successful IPOs in the US. The New York Stock Exchange, NASDAQ and American Stock Exchange all list SPACs. In Europe, SPACs are also listed on London Stock Exchange’s AIM market and Euronext. Global financial institutions such as Goldman Sachs, Citi, UBS, Deutsche Bank, Merrill Lynch, JP Morgan and Morgan Stanley have all acted as investment bankers for SPACs. To download a copy download the PDF file here.

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