"Blank Check Cos. IPOs Rise As Low Risk Level Draws Investors," Law360
In an article published by Law360 on August 14, 2015, Jonathan B. Wilson provides insight on the recent flurry of initial public offering filings for blank check companies. Mr. Wilson explained that investors are willing to participate in these IPOs because they are relatively low-risk ventures, and the money raised goes into a trust account that is not touched until an acquisition is landed. If the company fails, investors can recoup most, if not all, of their money. "If investors think that the sponsor of their blank check IPO is a good buyer, they invest," Mr. Wilson told Law360. "If the company never finds an acquisition target, the company is unwound and investors get nearly all of their cash back." The complete article is available to subscribers on Law360.