May. 13, 2022
I think the proposed rule changes generally benefit investors and am looking forward to the idea of SPACs, and specifically their sponsors, being required to disclose more and having more stringent safe harbor requirements. I generally think some amount of projection should be okay and legally protected (i.e. we expect to make revenue in 1 year or have positive FCF in 2 years) but longer-term and overly-rosy projections are nauseating (we will penetrate 50% of TAM in 10 years). Beyond disclosures, a significant concern for me is the tendency for recent de-spacs to plummet in value (this is also a concern for me when it happens in an IPO). This may be wishful thinking, but I would love some sort of investor feature that would allow individual common shareholders to redeem a certain amount of shares (maybe less than 1000 shares) after the de-spac is complete.