Goldman Cancels its SPAC

Sad news yesterday for the SPAC world. According to yesterday’s Wall Street Journal, because the IPO of Goldman Sachs’ planned SPAC, Liberty Lane Acquisition Corp., failed to price, the SPAC announced that it had canceled its proposed IPO due to market conditions. Originally Goldman had hoped to start trading Liberty Lane’s stock last week, then ...

Where is the next China?

To paraphrase Garrett Morris on the original Saturday Night Live, the People’s Republic of China has been very, very good to the reverse merger and SPAC world. In 2007 about one quarter of all reverse mergers involved companies from China going public through a merger with a US shell. According to the Reverse Merger Report, ...

Signs of the Times

I went to a dinner this past week for a well-known charity, an advocacy group. It was their annual “Wall Street dinner,” run by hedge fund managers and private equity types. Top notch speaker, good food, good company. I had attended the dinner last year. The one difference: last year the room, at famous Cipriani’s ...

The Case for Form 10 Shells- Valuable But Not for Every Deal

In the latest issue of the Reverse Merger Report, just out this week, I provided a guest column with the above title. At some point down the road I hope to post it here, but for now it is in the safe hands of the RMR and its subscribers. If you haven’t subscribed yet, you ...

Tip of the Week: How are Shell Companies Valued?

A shell company is a company with no or nominal operations, and with no or nominal assets or assets consisting solely of cash and cash equivalents. To identify and value an appropriate shell for a specific company’s purpose, it is necessary to understand six important characteristics of the shell. These give the prospective buyer a ...