New rules have been introduced which allow Special Purpose Acquisition Companies (SPACs) to be listed on the Channel Islands Securities Exchange (CISE).
A SPAC is a cash shell which is used to raise money for a very specific investment objective.
According to the CISE, the SPAC is growing again in popularity as international markets recover from the global financial crisis, and now the Exchange has launched specific rules to introduce it as a new product.
Fiona Le Poidevin, CEO of the CISE, said: "We have been able to introduce our SPAC rules in a timely manner, which demonstrates the responsive nature of the CISE in meeting the needs of current and potential clients. The new SPAC rules have been designed to be commercially attractive for management teams and yet also offer robust integrity for investors.”
The new rules are effective from 23 November and include:
• A minimum initial market capitalisation of £700,000
• A management team shareholding of more than 10 per cent
• A 36-month timeframe to make a Qualifying Acquisition
Le Poidevin added: "The CISE already admits 600 investment funds and companies so the introduction of the SPAC rules adds another product to our range, which also includes trading companies and specialist debt vehicles.”
A more detailed SPACs product flyer is available here.