GCORP vs. SPAC

G-Corp vs. SPAC

While both are created for the sole purpose of raising capital, going public and then acquiring a private company, there are a number of differences between a G-Corp and SPAC.

Definitions

A G-Corp is a "Growth Acquisition Corporation" that is structured to comply with Canadian regulations and trade on the NEO Exchange. A SPAC can trade on the NEO exchange, NASDAQ or a host of others.

How are they the same?

Both G-Corps and SPACS are created by management teams and taken through the process to go public for the purpose of acquiring a private company.

How are they different?

A G-Corp is a creation of the innovative NEO Exchange in Canada, while a SPAC is a more generic version that are authorized for trading on a number of stock exchanges.


Exchange aside, other differences: (i) a SPAC typically raises more than $100 million while the average G-Corp raises $8 million, (ii) SPACs provide investors who don't like the proposed acquisition with the IPO price (typically $10) back while G-Corps don't have that same right of redemption and (iii) SPACs are generally required to have $5 million in assets (excluding the capital raised, which is held in trust), while G-Corps are required to have about $250,000 in working capital (with the IPO funds separately accounted for in a trust account pending completion of an approved business combination.

G-Corp is a registered trademark of the NEO Exchange.

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