September 7, 2021
To whom it may concern,
I hope you are having a wonderful day. I'm submitting my comment as support for the approval of SR-NYSE-2021-45. I believe this change will enable better investment opportunities for the retail channel. It would significantly decrease the amount of capital needed to put up initially just to get a chance of investing at \"IPO\" prices and decrease the opportunity cost that hindered many shareholders of SPACs.
While many institutions have the opportunity of Forward Purchasing Agreements, including the SPAC sponsor, retail does not. Approving SR-NYSE-2021-45 would give retail better investment opportunities. The longer timeframe enabled for SR-NYSE-2021-45 as compared to SPACs would not penalize investors as much if the sponsor is focused on finding a great deal, and not just a deal for the business combination.
As a PSTH shareholder, and learning about this from the PSTH press releases, I'm in full support of SR-NYSE-2021-45 to enable the creation of SPARC. I believe it would be a great investment vehicle especially for retail investors.
I do however hold some concern about how it may be manipulated against investors. Nikesh Bhattarai brings up a great point on the issuer exiting their position and not finding a target. I believe there should be some rules such as the issuer needing to put a percentage of their own capital into the vehicle, and not being able to exit their position until some time after the business combination. I believe a setup similar to PSTH where the sponsor has a minimum investment (forces sponsor to get a great deal) and purchased warrants (expire worthless if no deal is completed) forces the sponsor to complete the objective laid out of find a great target and being invested in it along with their investors.
Thank you for working diligently on behalf of me and every other retail investor.
May God Bless You.
Sincerely,
Maksim P Martynyuk