NYSE to Boot SPACs That Miss Business Deal Deadlines Instantly
Published Date: 6/10/2025
Notice
Summary
Starting now, if a SPAC on the NYSE American fails to complete a business deal within the set time (usually 36 months), the Exchange will immediately stop its trading. This change helps protect investors by quickly halting trading in SPACs that miss their deadlines. SPAC companies and investors should watch their clocks closely to avoid surprises.
Analyzed Economic Effects
2 provisions identified: 0 benefits, 2 costs, 0 mixed.
Delisting Risk for SPAC Issuers
SPACs listed under Section 119 that do not complete the required business combination within 36 months (or a shorter period they specified) will be subject to delisting proceedings and will have their trading immediately suspended in connection with that delisting. The Exchange states it will not continue to provide a listing venue for a SPAC that has exceeded that time limit.
Immediate Trading Halt for Missed SPAC Deadlines
If a SPAC listed under Section 119 fails to complete its required business combination within 36 months (or a shorter period it specified), the NYSE American will immediately suspend trading in that SPAC and the securities will not be traded on the Exchange during any appeal of the delisting action. The 36-month deadline ties to completing deals that equal at least 80% of the deposit account value as described in Section 119(b).
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