Ramey Layne, a capital markets and M&A attorney at Vinson and Elkins, joins us to discuss the recent SEC SPAC proposals. We first give an overview of what the proposals actually are and why they are happening with a timeline of possible events. Ramey then dives into the safe harbor provisions, treatment of SPACs as investment vehicles, and the use of projections for both valuations and marketing purposes.
A crucial part of the discussion focuses around liability: examining who is impacted, unintended consequences, and hedging liability exposure. Ramey also dives into the problems with proxy reform/empty voting and highlights alternative solutions. We cap off the conversation with his thoughts on the future of the SPAC market.