Something I have been thinking about for a while...
I keep seeing posts (on various boards) that talk about DL shells as though they are "SPACs" like GNOG, SRAC, the SPAC that became TTCF, etc. Both are public companies whose business plan is to offer a fast "go public" path to private businesses, but the similarity ends there. They really are two different animals.
The shells are just that - shells. There is nothing inside. All the shell brings to the table is a public listing. The share structure is whatever it used to be - often wildly bloated to the point where a reverse split (after DL exits) is pretty much inevitable.
The true SPACs, in the other hand, are well-capitalized from the get go, usually to the tune of $100MM. There certainly are not any DL shells with $100MM in the bank! The capital structure is very simple and controlled from the start - usually 10MM shares at $10 with associated warrants. There is no need for a reverse split. The filings and SOS registrations are current. Additionally, most of these SPACs are listed on the NASDAQ from the very start. These SPACs bring WAY MORE to the table than does a DL shell (or any other shell), which means that the investors who buy the SPAC can expect a far higher share of the resulting company after a merger candidate is found.
I think it is really silly and misleading to use the term "SPAC" in any post about DL shells.
If I could afford to buy all of them, I would not need to buy any of them and I sure wouldn't be spending time on the message boards!
