Special Purpose Acquisition Companies (SPACs): TISE

James Tracey, Managing Director in our Guernsey office, looks at why The International Stock Exchange (TISE) in the Channel Islands can provide a credible and beneficial alternative to other exchanges as the appetite for SPACs continues to grow in Europe and beyond.

On 16 August 2021, TISE amended its rules for listing SPACs. The key changes were:

Dual share class structures (and founder shares) are permitted, subject to certain provisions and disclosure requirements
Issuers seeking to complete qualifying acquisitions must give shareholders the option to redeem, or otherwise acquire the shares from the shareholders for a pre-determined value or price per share
A SPAC issuer may not need to obtain prior shareholder approval for the completion of a qualifying acquisition, subject to certain exemption provisions
Any proposed qualifying acquisition must be announced to the market within three business days
There is no requirement for a SPAC issuer to suspend dealings in its securities upon an announcement being made in relation to a proposed qualifying acquisition.

Commenting on the changes, James Tracey said, “These revised rules follow hot on the heels of recent announcements from the European Securities and Markets Authority (ESMA) in the EU and the Financial Conduct Authority (FCA) in the UK in response to a sustained lively SPACs market over 2020 and into the first half of 2021 and designed to focus activity on quality listings. The Channel Islands have huge amounts of experience in supporting listed vehicles and acquisition activity through specialist vehicles and SPACs have been part of the corporate landscape in the islands since 2015. In revising its listing rules to clarify certain disclosure and structuring requirements, TISE is undoubtedly aligning itself with market trends in targeting high quality, institutional investor-led SPAC activity.”

To find out more about developments on TISE or our other listing services, get in touch with James directly.

JTC has over 30 years’ experience in listing on exchanges across Europe including TISE, the London Stock Exchange and Euronext. Our team of experts can plan the successful SPAC strategy for a number of domiciles.