“Three SPACs are making their debuts in Singapore this month, as the blank-check company framework gets a reboot in Asia. “
“On Thursday, Vertex Technology Acquisition Corp. started trading after raising 200 million Singapore dollars, the equivalent of $148 million. The company is the first special-purpose acquisition company to list in the Southeast Asian city-state since such listings were allowed in September last year. It is sponsored by Vertex Venture Holdings Ltd., the venture-capital arm of state investment company Temasek Holdings. “
Have you been following the rise of SPACs? Special Purpose Acquisition Companies. Also called “Blank Check Companies”.
Basically, wheeler-dealers set up a company – no production facilities, no products, no earnings – no nothing. Then they use the money they raise to buy a legitimate company. It’s like, “Gimme some money so I can buy something.”
And fools rush in.
More to the point, investment banks are happy to orchestrate the deals. For a fee, of course.