May. 30, 2022
Dear SEC Members, SPACs are obvious subterfuges to create securities without going through the legally mandated SEC review and authorization process. They should just be banned outright. The fate of those that have been approved so far only confirms the necessity of that process. By the way, the same can be said of reverse mergers. The SEC should find a way to prohibit those too. Ideally, ANY merger involving a publicly traded company should require evaluation and approval of the stock of the proposed merged company's stock by the SEC, as if it was a new security. Realistically, maybe this requirement can be imposed if (1) only one of the companies is publicly traded, or (2) if the market cap of the acquired company exceeds (say) 10% of the combined market cap. Thanks for the attention. Jorge Stolfi Full Professor Institute of Computing University of Campinas (UNICAMP), Brazil