SPAC (Special Purpose Acquisition Company)

A blank-check shell company with no underlying business, listed via its own IPO purely to raise cash into a Trust Account and then merge with a private operating company within a fixed deadline (commonly 24 months).

Definition

Special Purpose Acquisition Company – A blank-check shell company with no underlying business, listed via its own IPO purely to raise cash into a Trust Account» and then merge with a private operating company within a fixed deadline (commonly 24 months), taking that target public without a traditional IPO process. If no deal closes in time, the SPAC must liquidate and return the trust funds to public shareholders. Found In: Cover Page, MD&A (blank-check company disclosures)