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Farris LLP: Vancouver's Law Firm


20 January 2009

Trevor Scott Releases Corporate Bulletin on Spacs

Trevor Scott, a partner at Farris, has released a Corporate Bulletin titled Special Purpose Acquisition Companies (SPACs) Come to the Toronto Stock Exchange. 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 of this Bulletin, download the PDF file here.

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