To require the Securities and Exchange Commission to issue rules requiring enhanced disclosures for blank check companies during initial public offering and pre-merger stages, and for other purposes.
About This Bill
Committee
Latest Action · June 8, 2023
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Sponsor Promote and Compensation Act
This bill establishes additional disclosure requirements for a blank check company (e.g., a special purpose acquisition company) during an initial public offering or prior to a merger. A blank check company is a development stage company that issues a penny stock and (1) has no specific business plan or purpose, or (2) has indicated that its business plan is to merge with a company or companies.
Specifically, the bill requires such a company to disclose
the amount of cash per share expected to be held by the blank check company immediately prior to the merger under various redemption scenarios; side payments or agreements to pay sponsors, blank check company investors, or private investors in public equity for their participation in the merger; and fees or other payments to the sponsor, underwriter, and any other party.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.