SPECIAL PURPOSE ACQUISITION COMPANIES
A SPAC is a “Special Purpose Acquisition Company”. It is a type of investment vehicle that is created for the purpose of acquiring an existing company. A SPAC is typically formed by a group of investors who raise capital through an initial public offering (IPO) with the goal of acquiring an operating business. The investors in a SPAC are betting on the management team’s ability to identify and acquire a target company that will generate returns for the SPAC’s shareholders.
Once the SPAC has raised sufficient capital, it uses the funds to search for a target company to acquire. If a suitable target is found, the SPAC will then complete the acquisition and the target company will become a publicly traded company as a result. If the SPAC is unable to find a suitable target, the SPAC may be liquidated and the capital returned to investors.
SPACs have gained popularity in recent years as an alternative to traditional IPOs and as a way for private companies to go public quickly and efficiently. These are traditionally available to institutional investors and very, very wealthy family offices.
Spotify went public April 3, 2018 on the NYSE (SPOT) in a direct listing.
Donald Trump’s “Truth Social” merging into “Digital World Acquisition Corp (NASDAQ: DWAC)”
THE WEB3 MODEL
Many big recognizable deals were actually done by SPACS. We are now leveling the playing field and bringing SPACS to the retail investment community. web3 Holdings anticipates doing two to three SPACS per-year for the next couple of years.
Part of building a SPAC is to create a company with a broad shareholder base of at least 200 round lot shareholders (at least 100 shares each). We will be offering small equity positions in each SPAC exclusively to the shareholders of web3 Holdings. After sourcing a business combination, we would expect each SPAC to become publicly traded at some point in the near future.