Israel’s securities regulator sets out terms for Tel Aviv SPACs
Israel’s securities regulator sets out terms for Tel Aviv SPACs
The terms aim to protect investors, ISA says; among the new rules: sponsors must raise minimum of NIS 400 million (USD 123 million) mainly from institutional investors.
SPACs, also called “blank check” companies, are a form of a shell company set up by an entrepreneur, called a sponsor, for the specific purpose of raising money through an initial public offering of shares to acquire or merge with another company — this one with operations — which is looking to go public via a reverse merger.
Among the terms set out: The ISA will allow sponsors to raise a minimum of NIS 400 million (USD 123 million) through an offering of shares only or shares and stock options; the entrepreneur setting up the SPAC will have to invest at least NIS 40 million into the venture; and at least 70% of investment into the SPAC must come from institutional investors.
Read more of the terms here in the Times of Israel.
