Insights | January 15, 2021

SPACs are coming to the Stockholm Stock Market

Inspired by the hot trend in the US, SPACs (Special Purpose Acquisition Companies) are coming to Stockholm – this is what you need to know:

A SPAC is a special purpose acquisition company – a shell company set up and listed on a stock exchange with funds committed by its investors (in the listing or otherwise) for the purpose of making an acquisition post listing;
Nasdaq has updated its rules to enable SPAC listings in Stockholm. The new rules will enter into effect on 1 February 2021;
At least 90% of listing proceeds to be deposited in a blocked account;
Acquisition/business combination to occur within 36 months and with a value of at least 80% of the deposited account (Acquisition);
General Meeting approval is required to complete the Acquisition, with a majority of shares voting at the meeting;
Prior to the SPAC having completed the Acquisition – the SPAC articles of association must contain a possibility for the shareholders to redeem their shares against their pro rata part of the deposited cash (remaining);
The SPAC shall initiate a new listing process for the Acquisition and may not complete the Acquisition until the Stock Exchange has approved the listing.