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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