Edelman said the process of filing and hearing back from the SEC typically takes about 30 days.
The money raised from the IPO goes directly into an untouchable trust, where it accrues interest until the SPAC finds a private company and uses the funds to merge with that company. "The dynamic has completely changed," Graf said."It's not the SPACs that are chasing targets; it's the target companies that are chasing SPACs."
Once the deal terms and pipe financing are in place, the SPAC publicly announces the merger and pulls inthe deal through press releases, podcasts, and elsewhere, Klymochko said. But if the stock is trading higher on the deal news, the original shareholders may cycle out of the stock and take their profit, letting new investors get in on the going-forward company.
SPACs are a fad.