Energy One Corp (EGOC)

[BrokeAgent]

SPACs raise money for acquisitions through IPOs. They may have a target company for acquisition. They create a SPAC, issue an IPO and sell shares or issue warrants, then acquire the target company, or companies, if they raise enough cash (I believe the issue regarding reporting of warrants is what is causing the cool down in the SPAC market).

Custodianships are generally sought for reverse mergers of existing privately held companies that want to go public without an IPO. Generally, if you were the CEO or owner of a private company and wanted to go public, you would hire a lawyer who specializes in custodianships to find a dormant shell company, take possession of the shell through the courts and sell it to you. Custodianships generally already have a company with revenues merging in, but perhaps the company would like to raise more capital for expansion. There aren't many lawyers who go through the trouble and expense of custodianship without a buyer already lined up.