A “SPAC” is special purpose acquisition company, the term used for a specially-structured type of US initial public offering (IPO) of securities in which a sponsoring group sells shares of a shell or “blank check” company (i.e., a newly-formed company with no business plan or operations) to the public with the stated purpose of entering into a business combination with an unspecified existing private operating company through a reverse merger or similar legal process. Thus, instead of going public through a traditional IPO with a prospectus and underwriters, the private company (the “target”) merges into the SPAC after the target shareholders approve the business combination. Generally, the SPAC has 18 months to two years (which may be extended upon approval of SPAC shareholders) to find a target company and enter into the business combination (the “de-SPAC” process) and SPAC shareholders have the option to redeem their shares at the time of the de-SPAC.