Capital Calls SPAC silence isn’t golden

3 minute read

A sign is seen outside the 11 Wall St. entrance of the New York Stock Exchange (NYSE) in New York, U.S., March 1, 2021. REUTERS/Brendan McDermid

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BLANK TONGUES. Managers of special-purpose acquisition companies are giving investors the silent treatment. When hosting calls to explain their chosen transactions – such as Bespoke Capital Acquisition’s (BCu.TO) deal for Vintage Wine Estates, Jaws Spitfire Acquisition’s (SPFR.N) purchase of Velo3D , or BowX Acquisition’s (BOWX.O) deal with WeWork , SPAC executives and chieftains of their targets are not opening the line to questions.

Unlike a public company announcing a major deal, they don't tend to make themselves available other than for set-piece presentations. Often Q&A sessions on investor calls are little more than an opportunity for analysts to lavish praise on management anyway. And there are benefits to SPAC disclosures: They are usually detailed, including projections for the business, and everyone receives the same information.

Still, the no-questions habit misses any opportunity to put the architects of a SPAC deal on the spot publicly, perhaps even to address said projections . With the SPAC market red hot and the dealmakers in line for massive payouts, it's not unreasonable to think they should answer for their decisions. (By Lauren Silva Laughlin)

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Edited by Richard Beales and Amanda Gomez

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