US securities regulators are asking the Special Purpose Acquisition Company (SPAC) to: Strengthen disclosure It is related to potential conflicts of interest, compensation incentives, and other important information for investors.
Guidance from the US Securities and Exchange Commission this week will come as SPAC or blank check companies become more prevalent among mainstream companies seeking cannabis and faster trading. How to publish..
Law360.com reported on new guidance on Thursday.
In the marijuana industry, SPAC-related transactions are on the rise.
Two cannabis SPAS, Silver Spike and Subversive Capital acquisitions recently announced Over $ 2 billion..
For the biggest deal, Silver Spike uses Weedmaps, an advertising platform for California-based cannabis retailers. Valuation of $ 1.5 billion..
The SEC’s Disclosure Guidance aims to enable investors to better assess specific SPACs and potential investment risks.
by Guidance for SEC Corporation Finance, “The economic interests of the entities or management that form the SPAC … and the directors, officers and affiliates of the SPAC often differ from the economic interests of public shareholders and evaluate and decide whether to recommend them. This can lead to conflicts of interest. Business combination transactions with shareholders.
“The clear disclosure of these potential conflicts of interest and the nature of the economic interests of sponsors, directors, officers and affiliates in SPAC is generally the responsibility of these parties to negotiate SPAC’s business combination transactions. That’s why it’s especially important. “
SEC also earlier this month Investor breaking news To help investors better understand SPAC.
After SPAC finds a targeted acquisition such as Weedmaps, Law360.com reports that disclosures will increase to comply with SEC regulations governing public companies.
As more marijuana companies go public, the federal government urges SPAC to step up disclosure
https://mjbizdaily.com/as-more-marijuana-firms-go-public-feds-urge-spacs-to-beef-up-disclosures/ As more marijuana companies go public, the federal government urges SPAC to step up disclosure