The SPAC puts the investor at the center of the decision-making process: the decision about the Business Combination is left in the investors’ hands and individual shareholders who do not agree can exit.
Access to an expert and highly motivated team
The investor has the benefit of an expert team in choosing and acquiring unlisted companies at better conditions than those offered by companies listed on the stock market.
The remuneration of the team is linked to the post-Business Combination performance of the shares.
The SPAC shares and warrants can be traded immediately on the stock market, which means that the investment may be liquidated from the first day of trading.
The warrants allow the investor to generate a minimum return or to realize additional upside on the investment.
To make the investment more liquid Glenalta offers its investors the opportunity to exercise the right of withdrawal even before the shareholders’ meeting for the Business Combination approval, exercising a put option to the SPAC itself, which within 15 working days will return the invested capital withholding a small amount as a penalty fee for early withdrawal (the investor retains in his possession the warrants).*
If an investor does not approve the acquisition at the EGM, but the assembly reaches the majority and the acquisition is ratified, or if no acquisition is completed within 24 months, the investor recovers the full amount invested in the escrow account.
Complete alignment of promoters and investors interests
As it is typical of SPACs, the Promoters receive the investment’s financial return over the long term and it is closely linked to the return obtained by investors.
Market environment that generates acquisition opportunities
Accessing to the financial resources needed for development is prevented by limited access to credit and to stock markets capital.
The governance issues and especially the exit strategies contained in the shareholders’ agreements imposed on the entrepreneurs by private equity operators have given an added advantage to a SPAC compared to a private equity fund.
Several private equity funds need to dispose of their investments as they are approaching the end of the duration of the fund.
* For further details on terms and conditions of the right of withdrawal please refer to the Admission Document of the Company related to the admission to trading of its financial instruments on the Multilateral Trading Facilities AIM Italia /Mercato Alternativo del Capitale managed by Borsa Italiana S.p.A.