What is a SPAC?
SPACs are public vehicles that contain cash and a management team searching for a target partner: they exist solely to merge with a private company that wants to go public. SPACs are alternative go-public vehicles to IPOs that offer certain advantages, notably speed, cost, transparency and flexibility. In addition to IPOs, historically, biotech companies have used reverse mergers to go public so your readers may have some experience with that alternative to an IPO. SPACs offer a much better version of that old reverse merger transaction in that they are clean publicly traded platforms, they have no legacy issues, and they have a pool of cash raised in their own IPO. We think SPACs are a much better go-public path than merging with a pre-existing shell.