Welcome to the Reuters.com BETA. Read our Editor's note on how we're helping professionals make smart decisions.
Skip to main content

ShiftPixy-backed SPACs aim to raise over $1 bln via U.S. listings

2 minute read

The company and law firm names shown above are generated automatically based on the text of the article. We are improving this feature as we continue to test and develop in beta. We welcome feedback, which you can provide using the feedback tab on the right of the page.

April 29 (Reuters) - Staffing services company ShiftPixy Inc (PIXY.O) is looking to raise a total of $1.25 billion through four blank-check firms, according to regulatory filings on Thursday.

The special purpose acquisition companies (SPACs), TechStackery Inc, Vital Human Capital Inc and Industrial Human Capital Inc, are looking to raise $250 million each through the sale of shares and warrants on the New York Stock Exchange, while Insurity Capital Inc has filed to raise around $500 million.

SPACs are shell companies, which raise funds through an initial public offering to take a private company public through a merger at a later date.

Once confined to the backwaters of Wall Street dealmaking, SPACs have surged in popularity over the past year as they allow companies to sidestep a traditional IPO and the hassles and scrutiny associated with it.

The latest SPAC launches come in the middle of an unusually slow period for blank-check dealmaking, which has been come under regulatory scrutiny and a slump in investor demand that has hit PIPE (private investment in public equity) rounds.

The regulator is now also considering new guidance to rein in growth projections made by listed blank-check companies and clarify when they qualify for certain legal protections, Reuters reported earlier this week.

Alliance Global Partner was the sole book-running manager for all the offerings.

Reporting by Sohini Podder in Bengaluru; Editing by Amy Caren Daniel
More from Reuters