SPACs, "special purpose acquisition corporations," are shell corporations that use the proceeds of public offerings for acquisitions. I was shocked to read this from the NYT: "According to the market research firm Dealogic, SPACs represented 26 percent of the 73 initial public offerings so far this year, and 15 percent of the money raised on public markets."
SPAC offerings have some interesting features. The investments typically are structured as units consisting of common stock and warrant(s). Of course, the main risk is that the company has no operating history, so the success of the venture depends wholly on the ability of the principals to pick investments. Wikipedia has a nice entry on SPACs. For a recent offering, try 2020 ChinaCap Acquirco Inc.
By the way, according to a Westlaw search, the number of law review articles discussing SPACs = 0.
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