This is the year of SPACs: how a special purpose acquisition company works

A special purpose acquisition company (SPAC) is a company with no commercial operations that is formed to raise capital through an IPO for the purpose of acquiring an existing company. Also known as "blank check companies" SPACs have been around for decades. 💡
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In recent years, they've become more popular, attracting big-name investors such as Richard Branson, Chamath... SPACs are generally formed by investors, or sponsors, with expertise in a particular business sector, with the intention of pursuing deals in that area. 👀
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A SPAC generally has two years to complete a deal or face liquidation. After an acquisition, a SPAC is usually listed on one of the major stock exchanges. Famous examples of SPACs are "QuantumScape", "Iridium", "Lucid Motors" and "MP Materials". 🛒