Blank Check IPOs (SPACS) Message Board

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Technology Stocks : Blank Check IPOs (SPACS)

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To: jrhana who wrote (1346)	11/18/2007 10:47:18 PM
From: Glenn Petersen	Read Replies (1) of 3862

None of the writers covering the blank check companies has paid much attention to the warrants. Most of the new filings have included only one warrant in the units. The size of the average deal is increasing. For the year, the IPOs are averaging over $160 million, up from $95 million last year. The writer is correct in her observation that the quality of the management groups is a key factor in the success or failure of an individual SPAC. I am not sure that I entirely agree with the quote that you posted. If a management group does not have the sophistication to take a company public, it certainly does not have the sophistication to manage a public company. A lot of the companies that are going public through this route would not be able to generate much interest from underwriters doing traditional IPOs. This is merely another back door, albeit with the cash already at hand, similar to a reverse merger.

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