What is a special purpose acquisition company (SPAC)? What is a blank check company? Both a SPAC and blank check company are publicly-traded shell companies that raise collective investment funds through an initial public offering (IPO) in the form of a blind pool. The funds are placed into a trust until an acquisition is made or a predetermined period of time elapses and the fund is liquidated. A SPAC can be used in two different ways;

1) As an alternative investment vehicle where investors can participate alongside an experienced PE investor or management team in making a value-oriented acquisition

2) As a vehicle to complete a reverse merger and take a private company public in a much cheaper and more profitable way for current owners

There are many considerations and questions that are covered and answered in this video;

- Are SPACs like private equity investments?
- What are the key differences between a SPAC and an IPO?
- What is the reverse takeover process?
- What are the advantages of a SPAC to investors? Target companies? Sponsors?
- Why is a SPAC bid considered weaker to target companies than a normal bidding company?
- What are the rules overseeing SPACs in Canada? The United States?

Here is the TPG Pace Energy SPAC article published on CNBC;

https://www.cnbc.com/2017/05/05/unusu...

A in-depth guide to the SPACs listed on the TSX can be found below;

https://www.tsx.com/resource/en/1359/...

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http://seekingalpha.com/author/robert...