Law360, London (July 21, 2021, 12:55 PM BST) -- Germany's finance regulator has warned investors to be cautious when investing in special purpose acquisition vehicles as an increasing number of the companies are appearing in the market.
Regulator BaFin said on Tuesday that it has seen a rise in the number of so-called SPACs being listed on European stock exchanges. The "blank-check companies" are formed solely to raise capital during a flotation and then acquire an existing business that wants an alternative route to listing on a stock exchange.
BaFin warned that investing in SPACs comes with "considerable risks."
"In particular, the opportunities and the risk of loss of capital...
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