A court ruling Wednesday bolstered research that argues the true worth of blank-check company mergers is often far below the typical $10-a-share valuation.
The Delaware Chancery Court ruling found that the GigCapital3 Inc. special purpose acquisition company must face claims that public shareholders were denied crucial information, including how much money shares were worth in the purchase of an electric vehicle manufacturer.
The GigCapital3 SPAC shareholders couldn’t make an informed decision on whether to cash out shares or participate in its purchase of Lightning eMotors, court Vice Chancellor Lori Will ruled.
The ruling adds to legal problems facing SPACs ...
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