What is a SPAC?
The purpose of a SPAC (Special Purpose Acquisition Company), or acquisition company, is to raise capital, list the share on a stock exchange and carry out Acquisitions of one or more unlisted target companies during a specific investment period, calculated from the first listing date for trading in the acquisition company's shares. The investment period is normally between 24-36 months.
SPAC's are a type of acquisition company that originates from the USA and has become a significant part of the total number of IPOs. In Europe, a number of SPAC companies have been listed recently, but have not yet reached the same level of attention. HODL is planned to be the first SPAC in Europe to explicitly seek to acquire a blockchain-related company. HODL is one of the first SPACs to be listed on Spotlight under their new SPAC regulations.
The regulations for a SPAC impose certain requirements that primarily aim to give investors increased protection and greater influence over their invested capital until an Acquisition is completed, than is normally usual for listed companies. An Acquisition must be decided on at the Annual General Meeting, so the shareholders have the opportunity to vote on it. Furthermore, the shareholder who does not like the proposed acquisition can vote "NO" at the Annual General Meeting and request redemption of his shares.