1 Introduction
1.1 Listings of Special Purpose Acquisition Companies
("SPACs") have been popular in the US
for a long time, including in the last decade. Despite high
activity in the Swedish IPO market, with record breaking numbers of
transaction and great demand for new IPOs (also for companies that
are in early phase and not yet profitable), SPACs have yet to be
introduced in Sweden. We have, however, noted an increased interest
from clients around the possibility to launch a Swedish SPAC and in
this memorandum, we outline the basic concept of a SPAC and
describe key issues/hurdles to be considered in relation to Swedish
SPAC listing projects.
1.2 A SPAC is a shell company formed for the purpose of raising
funds in an initial public offering
("IPO"), and subsequently, acquiring
another operating company or business (the
"Target"). Usually, the offering
consists of redeemable shares, as well as warrants. If the investor
decides to redeem its sharesin the SPAC,
