September 30, 2024
NYSE Withdraws Favorable Proposal for SPACs
In April, I blogged about the SEC’s notice & request for comment on a proposed NYSE rule change that would amend Section 102.06 of the NYSE Listed Company Manual to extend the period a SPAC can remain listed if it has signed a definitive agreement with respect to a Business Combination within three years of listing. The proposal would have allowed a SPAC to remain listed for up to 42 months and would have better aligned NYSE’s approach with Nasdaq’s. Earlier this month, the SEC posted NYSE’s notice of withdrawal of the proposed rule change.
As John shared on TheCorporateCounsel.net, the SEC’s July release instituting proceedings to determine whether to approve the proposal suggested the agency wasn’t headed in that direction. The release raised concerns under the Investment Company Act and questioned how the proposed extension would affect shareholder protection and why it’s appropriate for a SPAC to retain shareholder funds past the current maximum time period. Cooley’s Cydney Posner notes that the only comment letter was submitted by CII and echoed the SEC’s concerns in the July release.
– Meredith Ervine