What is a G-Corp?

A G-Corp has no ongoing business operation of its own and exists simply to acquire another company. 

A special purpose acquisition company goes public the same way any other company does. However, G-Corps are subject to a different set of rules and regulations since they are raising capital in "blank check" format. This is because the use of proceeds raised in their offering will be applied in a transaction that isn't known and can't be described until they have negotiated an acquisition. Investors are trusting management to identify, negotiate an structure a good deal on their behalf. However, investors have the right to vote and approve any proposed deal.

People create G-Corps, bankers raise capital and investors participate because they all believe the publicly listed "shell" can acquire a private company on terms that are very favorable to the special purpose acquisition company shareholders. 

Private companies are attracted to G-Corp transactions because it provides a faster and easier way to go public, often with a pile of cash to be used for operating purposes and access to investment bankers.

Growth acquisition companies are only interested in large or otherwise compelling businesses which will attract institutional investors, capital, talent and trading volume. As a consequence, earlier stage companies need to rely on the direct listing process to go public, rather than on a G-Corp transaction.

All investments have risk and there are additional risks when investing into a shell that has no operating history or stated purpose other than acquiring an undisclosed business. While some G-Corps have performed well, there's no way to know whether the next one does well. It's very important to read the Risk Factors in any prospectus and consult with professionals before making any investment.

Where are G-Corps traded?

G-Corps are traded on the NEO Exchange.

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