SEC to propose new rules to rein in SPACs — report; mRNA startup lands $27M launch round
Already on the tail end of a boom, the once-hot SPAC market could soon be chilled even further.
The SEC will propose new rules around blank check companies that, among other things, would cut the legal protections that companies have relied on to make optimistic predictions about future mergers, Bloomberg reported. Under those rules, investors can sue over inaccurate SPAC forecasts.
Over the past year, a sizable group of biotech investors took advantage of buoyant market conditions to steer blank companies to Nasdaq — raising hundreds of millions on nothing but the promise of spotting a brilliant private company and taking it public via a merger.
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