Posted on Apr 14, 2021 8:58 AMUpdated Apr 14, 2021, 9:07 AM
PSPC will have to show a white paw. The American policeman of the financial markets, the SEC, has multiplied the warnings and the regulatory directives in front of the infatuation of the investors for these empty shells listed on the stock exchange. After having, without much success, warned individuals against the risks associated with these highly speculative investments, the American supervisor has changed his tune, and is now working to strengthen the supervision of PSPCs and their sponsors.
“We have seen it coming for quite some time, the SEC is vigilant in the face of the extent of the phenomenon,” notes a professional in the sector. More than 550 files have been filed with the SEC since the start of the year, with a view to raising more than $ 160 billion, according to Bloomberg. Enough to beat the record for 2020, which had already seen a record of capital raised via PSPCs. “She does not want to see any major difference settle between the information given to the market in the context of an IPO and a merger with a PSPC,” he explains. “The information communicated is sometimes very superficial during these announcements,” he admits.