So I have been wondering about SPAC's and whether they would attempt to raise money after they got going ... can they have a secondary and then buy another company? This is cofusing stuff.
The guy that started our Flying Eagle which then became Skillz he is back with an idea that has to do with extra funds but i cannot figure out whether owners of the parent co would get any of the newly created co <----
This Could Be The Future... when you ask for too much money buy something smaller and then spin out your SPAC.. this may be a bridge to far. This is close to jumping the SPAC shark...
SPAC veteran Eli Baker has filed a prospectus for a $1.5 billion IPO for Spinning Eagle Acquisition Corp., introducing a new innovation that would allow the vehicle to “rightsize” by spinning off part of itself if all of the capital is not needed for a single transaction.
Spinning Eagle will raise $1.5 billion to be used toward a target acquisition in any industry. That marks one of the largest SPAC deal to date aside from the $4 billion raised by William Ackman’s Pershing Square Tontine Holdings and Churchill Capital Corp IV.
Mr. Baker is well known for recent successful deals including gaming platforms DraftKings Inc. and Skillz Inc. , which have quintupled and doubled, respectively, since listing in 2020. He has once again hired The Goldman Sachs Group, Inc. as an advisor on the deal.
The spin option appears to be a smart way to raise the most possible capital while Mr. Baker’s deal prowess is in extremely high demand – even if it’s not all needed for his favored target.
“In the event that we determine not to use all of the proceeds held in the trust account for our initial business combination, based on the capital needs of our initial business combination target and related factors, we will have the ability to rightsize our trust account by allocating a portion of our trust account to a new blank check company, which we refer to as SpinCo, and spinning off SpinCo as an independent, publicly-traded special purpose acquisition company,” the filing said. “If we elect to effect a spin-off, we will designate a specific amount of the proceeds then held in the trust account for our initial business combination, and, prior to our entry into the definitive agreement for the initial business combination, contribute the excess amount to a trust account of SpinCo, in exchange for units, Class A ordinary shares and warrants of SpinCo.”<-----
Van How do you read that... Do you get shares of SpinCo for holding Spinning Eagle....?????