SEC Adopts Rules to Enhance Investor Protections Relating to SPACs, Shell Companies, and Projections
The rules also address investor protection concerns more broadly with respect to shell companies and blank check companies, including SPACs.
- The rules also address investor protection concerns more broadly with respect to shell companies and blank check companies, including SPACs.
- “Just because a company uses an alternative method to go public does not mean that its investors are any less deserving of time-tested investor protections,” said SEC Chair Gary Gensler.
- In connection with de-SPAC transactions, the rules include disclosure requirements related to projections, including disclosure of all material bases of the projections and all material assumptions underlying the projections.
- The rules also update and expand guidance on the use of projections in all SEC filings.