March 31, 2021 – Los Angeles, CA – In light of the major increase in volume of SPAC issuance over the last year, and an increase in volume of pre-IPO companies seeking listings, CrossWork.us today announced that it is making available, on a complimentary basis, a key guide to help issuers and investors avoid common and critical errors in connection with SPACs.
Download a PDF copy of the full complimentary guide at: https://hubs.ly/H0JDGDJ0
In January alone, SPACs completed around $26 billion in share sales, helping fuel $63 billion of IPO proceeds worldwide this year, more than five times the proceeds from January last year. SoftBank Group, Social Capital, The Gores Group, PE firm Thoma Bravo and many others have all raised money through SPACs in the past few weeks, capitalizing on last year’s record fundraising. Over 200 companies completed IPOs in January. A record number of pre-IPO companies are considering SPACs as an alternative to IPOs.
However, according to Steven Ogunro, not all SPACs are equal, and their structures must be considered carefully given the wide range of parties with a potential interest in the equity of any SPAC, including: pre-IPO companies, investors, investment bankers, sponsors, acquisition teams, acquisition targets, acquisition target shareholders, institutional funds, hedge funds, speculators, offshore (or even onshore) short sellers, attorneys, potential lenders and more. Many SPACs will fail as a result of poor financial structuring.
Critical items (addressed in detail in the full report) to consider when evaluating a SPAC at any time include:
Stock options or warrant overhang
Stock research coverage
Volume and liquidity
Shareholder base strength
Classes of stock and class power
Credible institutional holders
Debt and debt power
Need for future financings
Read the full report at:
PDF: https://hubs.ly/H0JDGDJ0 or
CrossWork.us is a pre-IPO venture capital group consisting of:
CrossWork Midas Pre-IPO Fund focuses on investments in traditional pre-IPO opportunities but enhances return with accelerator equity additions
CrossWork Emerging Pre-IPO Fund focuses on multi-stage pre-IPO opportunities and provides equity enhancements if IRR falls below benchmarks
CrossWork Late Stage Accelerator partners late stage companies and pre-IPO companies with teams of senior executives with IPO / M&A experience, bankers and hedge fund managers to drive and support success