Second SPAC of 2009 Filed
By David Feldman at 27 October, 2009, 2:05 pm
In a hopeful sign, the SPAC Report confirmed that an off-shore SPAC formed by GSME Partners in China is in registration with the hope of raising about $41 million. The underwriter is Cohen & Company. The SPAC will operate as a foreign private issuer. The only other SPAC filed this year is called Asia Select Acquisition I Corp., with a plan to raise about $32 million (disclaimer: we do some legal work for affiliates). That was filed back in April but so far has not priced.
Most experts agree that it is unlikely that the mammoth nine-figure size SPACs will return. But many believe (as do I) that the SPACs in the $30 to $50 million range can offer an attractive alternative to a traditional IPO. The larger ones found themselves competing more with buyout funds, which was more difficult. Let’s hope the funds and institutions who backed the last SPAC successes are ready for more.
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