For those who don't know, a SPAC (Special Purpose Acquisition Company) is a unique investment vehicle.
Here's how it works: "Avg Joe buys shares in an initial public offering for an investment company with no assets to speak of other than the pot of money from the I.P.O. The company’s sole mandate is to make one big acquisition. Avg Joe has no idea what it will buy. And frankly, neither do the folks running the investment company. It’s a blind bet that the Masters of the Universe will live up to their name." (from the NYT article cited below)
If the SPAC does a deal, they get 20 percent of the entire company! And after six months to a year after the deal is complete they are free to dump their shares.
Classic cannabis PubCo style.
The SPAC’s future target investments must remain undisclosed to the investors -- because to disclose them would mandate onerous disclosure requirements.
In an industry mired by fraud, insider deals, undisclosed interests, inflated valuations, excessive executive compensation, which #cannabis company really has time for disclosures? C’mon.
Forget transparency... Just trust ME, and let’s just make some money together!
But of course first, give me your money.
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