September 30, 2021
SPACs in the Crosshairs
At the Small Business Capital Formation Advisory Committee meeting earlier this week, SEC Chair Gary Gensler focused his remarks on SPACs. He noted concerns about the PIPE investors getting a better deal than retail investors, as well as the costs associated with SPACs, including sponsor fees, dilution from the PIPE investors, and fees for investment banks or financial advisers. Gensler reiterated that he has asked the staff “for recommendations about how we might update our rules so that investors are better informed about the fees, costs, and conflicts that may exist with SPACs.”
– Dave Lynn