Looking back, those were fun times when special purpose acquisition companies ('SPACs') ruled the market... I was thinking about the "good old days" last week when I was on CNBC's Last Call to talk about a few of yesteryear's most popular SPACs that were warning they might not be able to stay in business...
Excellent report, Herb. FYI, this is now a couple years old, but here is a well done legal history of SPACs by a senior law student who knew the market: history of SPACs: "MONEY FOR NOTHING, SHARES FOR FREE: A Brief History of the SPAC" by Ross Greenspan (May 2021), available for free at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3832710
The SEC will get around to investigating in 2027. They don't have the dollar or employee resources to even scratch the surface of what has been done over the last 5 years.
Truly. Left without adequate resources and frequently shot-to-pieces on social media with disinformation spread by the folks behind this stuff, they often end up grinding on smaller firms. Unfortunate times but history suggests the tables do, eventually, turn..... Optimistic about honesty eventually!
New $500MM equity round for WheelsUp this afternoon
“The lenders will receive newly issued Wheels Up Class A common stock resulting in the lenders owning approximately 95% of the pro forma equity of the company on a fully diluted basis.”
Well, there is a new star, today! VFS - Vietnam Fast Stuff! LOL. Market Cap more than Ford or GM! Soon will approach TSLA if things go as plan. This kind of thing is just elementary in the ream of scamming: owner(s) float 100 shares, then ask friends, accomplices to buy (on owner's money). Nothing from other party to come in to spoil the party. So everything can go up zillions, even a pile of dog sh$t.
Where are the regulators is the question indeed. This stuff is in broad daylight. The Golden Age of Fraud is indeed, just that. A somehow brutal but polite take-down of a preposterous collection of grifts.
Excellent report, Herb. FYI, this is now a couple years old, but here is a well done legal history of SPACs by a senior law student who knew the market: history of SPACs: "MONEY FOR NOTHING, SHARES FOR FREE: A Brief History of the SPAC" by Ross Greenspan (May 2021), available for free at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3832710
...the device is really more than 30 years old, he says.....
Anything is OK in moderation, it's always when it devolves into excess.
The SEC will get around to investigating in 2027. They don't have the dollar or employee resources to even scratch the surface of what has been done over the last 5 years.
PLUS they do not want to be the one to cause a run on the bank, even if there is fraud.
Truly. Left without adequate resources and frequently shot-to-pieces on social media with disinformation spread by the folks behind this stuff, they often end up grinding on smaller firms. Unfortunate times but history suggests the tables do, eventually, turn..... Optimistic about honesty eventually!
New $500MM equity round for WheelsUp this afternoon
“The lenders will receive newly issued Wheels Up Class A common stock resulting in the lenders owning approximately 95% of the pro forma equity of the company on a fully diluted basis.”
https://news.delta.com/delta-certares-and-knighthead-accelerate-wheels-business-transformation-expanded-strategic
Well, there is a new star, today! VFS - Vietnam Fast Stuff! LOL. Market Cap more than Ford or GM! Soon will approach TSLA if things go as plan. This kind of thing is just elementary in the ream of scamming: owner(s) float 100 shares, then ask friends, accomplices to buy (on owner's money). Nothing from other party to come in to spoil the party. So everything can go up zillions, even a pile of dog sh$t.
The thing with these SPACs... Just when you think you've hears the best one, one that tops it comes along.
Thanks, just added a mention of VFS to the tail end of my report.
Where are the regulators is the question indeed. This stuff is in broad daylight. The Golden Age of Fraud is indeed, just that. A somehow brutal but polite take-down of a preposterous collection of grifts.
The list of "helpers" scurrying to do SPACs was like a who's who of get-rich-quick schemers. Anything for a fee...