Benefits of the SPAC model
The SPAC model has unique advantages for both the investor in the SPAC as well as the target company the SPAC intends to acquire:
- The process of a simultaneous acquisition and listing removes uncertainty and frees up time and resources for the target company's management and owners. This time can instead be used for what really creates long-term value, namely, to continue to develop the target company
- An ordinary stock exchange listing is always exposed to risks related to the market climate at the time of listing. By selling to a SPAC, the target company can gain security around both valuation and the future (co-) owners through a mutual dialogue at a time and at a pace that works for the target company. This can be especially important for companies with slightly more unique business models that can sometimes be difficult to explain in a normal traditional listing process
- In the case of Creaspac, a target company that is acquired will gain access to a wide network and long-term owners with good experience and history in terms of developing companies both in a listed and an unlisted environment. This strengthens the possibilities for continued good development for the company and the opportunity to raise additional future capital in case the company so should need
- The SPAC model has a wonderful direct democracy in the way that individual shareholders can choose to say no to an investment when the decision is made by the general meeting. In Creaspac, shareholders who vote no at the general meeting will have the opportunity to get their shares redeemed at a consideration corresponding to the price in the offer made in connection with the IPO (100 SEK per share), less the proportion of any taxes and the Company’s operating costs since the formation of the Company. If shareholders of more than 10% of the shares want to redeem their shares, the distribution of the number of shares to be redeemed shall be made in proportion to the number of shares each shareholder has requested for redemption. An alternative to redemption is of course to sell the shares, which are listed with daily market valuation and trading