SUMMARY NOTES
Since August 2003, 107 blank check companies have gone public, raising gross proceeds totaling $9,238,147,833 (give or take a buck or two). Another 35 companies currently have registration statements on file with the SEC and are looking to raise an additional $3,459,920,610 (once again, give or take a buck or two). Seven other companies have pulled their registration statements, two of which subsequently went public on London’s AIM stock exchange where they raised gross proceeds totaling $381 million.
26 blank check companies have actually completed acquisitions, and another 24 companies have deals pending. Five companies have failed to close on their proposed acquisitions and are currently in liquidation.
Of the 26 blank check companies that have closed on acquisitions, 18 are trading above their offering prices, some at substantial premiums. All of the 24 companies that have deals pending are trading above their offering prices, which is not surprising when you take into consideration the fact that the non-insider shareholders will receive cash distributions if the acquisitions are not approved.
There have been two high profile transactions. The first was the acquisition of Jamba Juice Company by Services Acquisition Corporation International. The units, which were originally priced at $8.00, last traded at $13.81. The other high profile transaction is the proposed acquisition of American Apparel by Endeavor Acquisition. The units, which were originally priced at $8.00, last traded at $19.20. |
