The Toronto Stock Exchange Releases Final Rules Approving the Listing of Special Purpose Acquisition Corporations
|Lawyer||William (Bill) Gorman, Jon Northup, Stephen Pincus|
|Area||Corporate Finance and Securities|
On December 19, 2008, the Toronto Stock Exchange (the “TSX”) released final rules (the “SPAC Rules”) to facilitate the listing of Special Purpose Acquisition Corporations (“SPACS”). These rules are immediately effective. SPACs are shell companies with no operating business through which sponsors/promoters are able to raise capital from the public to be used to acquire an operating company within a three year time frame. Based on the US experience, SPACs are expected to offer experienced management teams access to significant pools of capital with an institutional securityholder base.