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.

For more information, please contact Christoffer Benninge, Pontus Enquist or Ola Sandersson.