The Short De-SPAC ETF
The De-SPAC Index Sector Weightings
Index data as of 5/17/21. Index sector weightings are subject to change. The De-SPAC Index is developed and maintained by The Herculoid Group LLC. An index is unmanaged and cannot be subject to a direct investment.
SPAC Issuance Accelerates through 1Q21
$81.5 Billion Raised in 2020
$97 Billion Raised in 1Q21
SPAC IPO Sizes >$300M since 2018
Stages of a SPAC
Initial Due Diligence & Wall Cross
- Management presentation; Full data room & comprehensive due diligence access; Assess need to raise funds via a Private Investment in Public Equity (PIPE)
- Raise fully-committed PIPE (if applicable); Complete due diligence; Prepare purchase agreement and ancillary agreements; Sign definitive agreements and announce deal
SEC Approval & Investor Marketing
- File S-4/proxy with SEC as soon as possible post announcement; Launch investor roadshow after initial filing (~1 week, with follow-up calls thereafter); Initial SEC review of filing takes 30 days, with 2-3 rounds of comments thereafter
Shareholder Notification, Vote & Closing
- Shareholder notification and vote; Shareholder redemption elections due 2 business days prior to extraordinary general meeting; Deal closes 1-2 business days post meeting
- Merged entity starts trading under a new ticker symbol. De-SPAC commences its life as a public company with additional accounting & reporting requirements. Potential for sell-side equity research coverage to help raise investor awareness. Stock may be eligible for broad equity index inclusion.
(Source: Bank of America)
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