Continental on SPAC Trust Accounts
by Kristi Marvin on 2023-03-13 at 11:55am

In light of the recent failure of Silicon Valley Bank and Signature Bank, there have been some inquiries as to where SPAC trusts are held.  Continental Stock Transfer & Trust had already confirmed that Silicon Valley Bank was not one of their approved asset managers and therefore none of the SPACs that used Continental as a Trustee would be in danger of having their funds held there. Additionally Continental is the currently the Trustee for 93.8% of all active SPACs.

However, there are still some questions regarding segregation of accounts and the like, so Continental recently put together the following statement.


INFORMATION REGARDING CONTINENTAL’S SPAC TRUST ACCOUNTS:

Please be advised that Continental Stock Transfer & Trust Company maintains hundreds of SPAC trust accounts, all of which are segregated accounts. None of those accounts are held at Silicon Valley Bank or Signature Bank.

With regard to our SPAC trust accounts held at qualified financial institutions, accounts which are invested in treasury bills or Rule 2A-7 compliant money market funds are not part of the financial institution’s capital or balance sheet.

Uninvested deposits or demand deposits are however part of that institution’s capital and balance sheet. In this regard, you should gain comfort from the fact that all of Continental’s SPAC demand deposit accounts and deposit accounts are held only at JP Morgan Chase, Citibank or Morgan Stanley.


 

Recent Posts
by Nicholas Alan Clayton on 2024-03-27 at 1:31pm

News and Rumors CNBC: Former WeWork (OTC Pink:WEWKQ) founder Adam Neumann has offered to buy back control of the company for $500 million but has yet to secure the necessary financing. WeWork went public with BowX in October 2021. PR: Satellite telecom firm Spire Global (NYSE:SPIR) has signed an agreement to build and launch two...

by Nicholas Alan Clayton on 2024-03-27 at 11:38am

Bannix (NASDAQ:BNIX) has entered into a definitive agreement to combine with VisionWave Technologies for $30 million. The combined company is expected to trade on the Nasdaq once the deal is completed with an initial outside date of September 14. Transaction Overview Bannix has about $17 million in its trust after seeing 77.4% of its shares...

by Nicholas Alan Clayton on 2024-03-27 at 7:33am

At the SPAC of Dawn Much of the attention yesterday was on tracking the swings of the newly-completed Trump Media (NASDAQ:DJT) deal with the FT going as far to suggest it may “make SPACs great again.” Not all of the day’s data points were on the positive side of the ledger, however. IB Acquisition Corp....

by Nicholas Alan Clayton on 2024-03-26 at 1:52pm

News and Rumors SpaceNews: Boeing (NYSE:BA) has sued Virgin Galactic (NASDAQ:SPCE) alleging the space tourism venture refused to pay $25 million it owed for design work and violated Boeing’s intellectual property rights. Virgin Galactic combined with Social Capital Hedosophia in 2019. Bloomberg: The most popular options contract for Trump Media (NASDAQ:DJT) predicts it to plunge...

by Nicholas Alan Clayton on 2024-03-26 at 11:51am

APx (NASDAQ:APXI) has entered into a definitive agreement to combine with precision medicine firms OmnigenicsAI and MultiplAI at an enterprise value $340 million. Once combined, these companies will offer DNA tests to consumers linked to predictive insights on their nutritional and genomic health. The combined company is expected to trade on the Nasdaq under the...

logo

Copyright © 2023 SPACInsider, Inc. All Rights Reserved