China Networks International Holdings Ltd. (CNWHF)

[pennypauly]

Great info thanks co24

By market convention, 85% to 100% of the proceeds raised in the IPO for the SPAC are held in trust to be used at a later date for the merger or acquisition. A SPAC's trust account can only be accessed in order to fund a shareholder-approved business combination or to return capital to public shareholders at a charter extension or business combination approval meeting. Today, the percentage of gross proceeds held in trust pending consummation of a business combination has increased to 100% and more.

Each SPAC has its own liquidation window within which it must complete a merger or an acquisition. Otherwise it will be forced to dissolve and return the assets held in the trust to the public stockholders. In practice, SPAC sponsors can often extend the life of a SPAC by making a contribution to the trust account in order to entice shareholders to vote in favor of a charter amendment delaying the liquidation date.

In addition, the target of the acquisition must have a fair market value that is equal to at least 80% of the SPAC’s net assets at the time of acquisition. Previous SPAC structures required a positive shareholder vote by 80% of the SPAC's public shareholders in order for the transaction to be consummated. However, current SPAC provisions do not require a shareholder vote for the transaction to be consummated unless as follows:
Type of transaction & Shareholder approved required