NASDAQ Proposes Additional Listing Requirements for Companies Going Public Through Reverse Mergers: As Proposed, New Requirements Will Not Affect SPACs

July 05, 2011
“Back door” IPOs and Special Purpose Acquisition Companies (“SPACs”) have long been subject to heightened scrutiny by the Securities and Exchange Commission. The recent actions by the SEC and the NASDAQ Stock Market LLC discussed in this update make it clear that back door IPOs will continue to attract heightened regulatory scrutiny, but may also reflect greater acceptance of SPACs.