A Special Purpose Acquisition Company (SPAC), also known as a “blank check company” is a corporation with no commercial operations, designed to take private companies public in a specific time frame, often 2 years. The COVID-19 pandemic has led to greater uncertainty in the Initial Public Offering (IPO) market and SPACs have become increasingly popular. Per SPACInsider, this year outpaced last year within the first 6 months and is expected to surpass the last 5 years combined. As of this writing, there have been 169 U.S. SPAC IPOs, or 50% of total U.S. IPOs, with total proceeds of US$62.6 billion. Examples with links to the commercial vehicle industry include Nikola, Hyliion, Workhorse, XLFleet, Lordstown Motors, SBE/ChargePoint, and Velodyne Lidar.
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