SPAC or SPAM: Dream Exchange Explains What You Should Know About SPACs (Special Purpose Acquisition Companies) and Where They Are Headed

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Oct 12, 2021, 08:51 ET

CHICAGO, Oct. 12, 2021 /PRNewswire/ -- What do Jay Z, ARod, Shaq and former Republican Congressman, Paul Ryan, have in common? They all have SPACs, or special purpose acquisition companies, which took off in 2021 with a record $107.6 billion raised in the first half of 2021 (compared to $83 billion in 2020) according to Dealogic.

SPAC or SPAM? Dream Exchange evaluates the future of SPACs

An increase in interest in public markets during the last 18 months combined with celebrity figures leading up these SPACs has been a recipe for expansion. However, the SPAC is simply a band-aid on a structural problem in our markets that has been around for decades in which small public offerings have virtually disappeared.

Dream Exchange is addressing this problem using a new type of stock exchange called a venture exchange. Once created, this will be a mechanism for investors to invest directly in private companies as if they were listed on a national stock exchange. For more about this new mechanism, Dream Exchange is holding an online seminar on Thursday October 14th at 7:30PM EST specifically on SPACs and creating access to capital for more small businesses. The online seminar is free, but registration is required.

In essence, a SPAC is a mechanism to take a company public. However, when investing in a SPAC, the investment is not in the actual products of a public company as it would be investing in an IPO. No, when investing in a SPAC, investors are pinning their hopes to a team that will evaluate and acquire a company later.

Unfortunately for many SPACs, "later" is coming up quickly. Out of over 589 public SPACs, 445 are seeking a company to acquire and 121 SPAC deals are still pending. According to Bloomberg Law, just 23 SPACs have acquired a target company!

CEO and Founder, Joe Cecala said, "Venture exchanges are a real solution to the underlying market problems that SPACs are seeking to fix. Venture exchanges will provide direct access to capital for businesses and direct access to a safe investing environment for investors."

About Dream Exchange:

Dream Exchange is creating the first black-owned stock exchange in the history of the U.S. In addition, the company has been a pioneer in venture securities which, once created, will allow emerging businesses to list and trade on an approved venture stock exchange. Find out more at www.dreamex.com

Media Contact:
Jane Hayton
[email protected]
(312) 465-7912

SOURCE Dream Exchange