From the people behind DraftKings and Skillz this SPAC that was just announced looks quite interesting, especially the below part of it’s filing;
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. 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. We will then distribute SpinCo’s units, Class A ordinary shares and warrants to our public shareholders and warrantholders on a pro rata basis pursuant to an effective registration statement under the Securities Act. SpinCo will be required to complete its initial business combination within the same completion window as we have to complete our initial business combination commencing from the closing of this offering. Our flexibility to engage in more than one business combination and effect related spin-offs is described in further detail herein.
Covering their backs should they find a couple of front-runners out there and don’t want to miss the opportunity.
Thoughts? Anyone seen this before?
