The Daily Dish (10/09/21)
SEC Panel Enforcing Strict Disclosure Rules for SPACs
The Securities and Exchange Commission’s investment advisory committee approved recommendations to strictly enforce the existing disclosure rules for SPACs. The committee has recommended an increased focus on the disclosure requirements, which includes the role of the SPAC sponsor and simplifying the SPAC registration statement.
The document further goes on to say that the SEC should analyse the current landscape of SPACs, with the numerous SPACs that are at various stages of completing a transaction, including SPAC sponsor compensation and incentives.
The recommendation characterised is focused on the practical challenges that SPAC investors currently face in fully assessing the risk and opportunities associated with these investment vehicles.
The committee believes that more recommendations may be necessary for the future, with the current guidelines being made based on a preliminary assessment.
Hong Kong May Limit Retail Investors Investing in SPACs
As part of its new SPAC framework, Hong Kong may curb access to retail investors to buy and sell SPACs.
As part of its proposal, Hong Kong will only allow professional investors with assets of more than HK$8 million ($1 million) to participate in primary and secondary SPAC offerings. In 2019, retail investors accounted for 20% of all trading in Hong Kong.
Regulators are also considering if SPACs should meet the same minimum market capitalisation requirement as regular IPOs, with a minimum of HK$500 million ($64 million).
Singapore announced a threshold of S$150 million ($112 million) last week. While acknowledging risks, Singapore has, like the U.S, placed no restrictions on retail investors.
Patrick Grove is Considering a Singapore SPAC
Internet Entrepreneur, Patrick Grove is considering options for listing a SPAC in Singapore, in a bid to be the first sponsor under the new rules issued by the city-state last week.
Grove, who is the chairman of Catcha Group, an internet-focused investment group in Southeast Asia, has had discussions with the Singapore Exchange about a potential listing. The businessman has already launched a SPAC in the US earlier this year named Catcha Investment Corp raising $300 million.
Reddit Reads
SPAC Redemption Rate in August
QELL May See High Redemption Leading to a Short Squeeze
QELL Acquisition Corp is likely to post large redemption numbers after the merger vote today, which will chase a significant short squeeze that may cascade into a gamma squeeze.
SOAC May be Prime for a Short Squeeze
There are currently 60,000 call options outstanding against a 2.7 million float, which could mean that the float is over-committed, resulting in a surge.
