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Walk a SPAC's timeline.

Thirteen stages, one at a time. What happens, which filing says so, and what it means if you are the one holding the shares. Pick any stage.

Before the search
The search
If it finds a target
If it does not find a target
Six to ten weeks before the IPO

Registration filed

The sponsor registers the offering. This single document names the team, states what the SPAC intends to hunt, sets the size of the sponsor’s promote, and fixes the deadline it will have to find something.

What it means for you

Nothing trades yet, but everything that matters about the SPAC is decided here and never changes. If you only ever read one filing, read this one.

Watch out

The mandate is written loosely on purpose — "technology businesses in North America" rules almost nothing out. The team’s CVs are a better guide to what it will actually buy than the sentence describing what it says it will buy.

Filed as · S-1

Day zero

IPO prices, trust funds

Units sell at $10.00 and nearly all of it goes straight into a trust account holding short-dated Treasuries. The sponsor covers the underwriting and running costs separately, which is how the trust can hold $10.00 or more per share when the public paid exactly $10.00.

What it means for you

From this moment every public share carries the right to be redeemed for its slice of that account, in cash, whatever the market price does. That right is the floor under everything else on this page.

Watch out

Check what the trust was funded at — $10.00, $10.10 and $10.20 all exist, and the difference is a free 2% that some sponsors give and others do not.

Filed as · 424B4

About 52 days after the IPO

Units separate

The unit splits into its parts. The share and the warrant get their own tickers and trade independently from here on, and the unit itself becomes an afterthought.

What it means for you

You now have a choice the unit did not give you: the share, which carries the redemption right and behaves like cash, or the warrant, which is a leveraged bet on a deal that has not been found yet.

Watch out

The three lines can price inconsistently for weeks after separation while the market works out what each leg is worth. A ticker with a suffix is usually the warrant or the right, not the share.

Filed as · 8-K

Most of the SPAC’s life

The search

The sponsor hunts privately. Negotiations are confidential and there is no obligation to say anything until an agreement is signed, so the public record goes quiet for months at a time.

What it means for you

The share sits near trust value and barely moves, because a pre-deal SPAC is a Treasury fund with a lottery ticket stapled to it. This is the cheapest time to own one and the least interesting time to watch it.

Watch out

Silence is not evidence of nothing happening. Unusual volume in a stock that normally trades almost nothing is the only public tell there is, and it is the reason the tape is worth watching on names like these.

Filed as · Nothing — by design

Unscheduled — this is the event

Definitive agreement announced

The SPAC signs a business combination agreement and names its target. The presentation that accompanies it is a marketing document, and the filings that follow will disclaim most of its projections.

What it means for you

The repricing moment. The share stops behaving like cash and starts behaving like an opinion about the target, and the warrants move several times harder in whichever direction the opinion goes.

Watch out

Signed is not closed. Deals are terminated between announcement and vote often enough that any discount to trust value is a live judgement rather than free money. Read the minimum cash condition before the deck.

Filed as · 8-K item 1.01, plus an investor presentation

Four to eight weeks after the agreement

Merger proxy filed

The full deal document. Audited numbers for the target, the pro-forma ownership table, the conditions the deal has to clear, and the mechanics and deadline for redeeming.

What it means for you

This is where you find out what fraction of the combined company you would actually own, and how much cash it will have if everyone else redeems. Both are usually worse than the announcement implied.

Watch out

The pro-forma table assumes no redemptions. That assumption is almost never what happens, and the sensitivity case further down the document is the one worth reading.

Filed as · S-4 or DEFM14A

Typically two business days before the vote

Redemption election closes

The cutoff for instructing your broker that you want cash instead of shares in the merged company.

What it means for you

The single most missable date in the structure. Miss it and you wake up holding the target at whatever it opens at, which is frequently well below the trust value you could have taken in cash.

Watch out

Your broker will impose its own cutoff a day or two before the official one, and will not necessarily tell you. Redeeming is also separate from voting: you can vote for the deal and still take your money.

Filed as · Stated in the merger proxy

Three to six months after the agreement

Shareholder vote

Shareholders approve or reject the combination, and the redemption results are published the same day.

What it means for you

The first time anyone learns how much of the trust actually survived. That number decides what the company is worth on day one far more than the valuation in the deck did.

Watch out

A deal can be approved with the great majority of the trust redeemed. The share count barely falls in proportion — the sponsor’s founder shares and the target’s stock are untouched — so the survivors own a company with a fraction of the cash promised.

Filed as · 8-K item 5.07

Days after the vote

Closing — the ticker changes

The shell becomes the target. New name, new ticker, the surviving cash on its balance sheet, and the sponsor’s founder shares convert into ordinary stock.

What it means for you

You are no longer holding a SPAC. Whatever floor the trust provided is gone, permanently, and you own an operating business at whatever price the market decides.

Watch out

The promote — commonly about 20% of the post-IPO share count, bought for a nominal sum — becomes real dilution at this moment, and it applies to everyone who did not redeem.

Filed as · 8-K item 2.01

Commonly 180 days after closing

Lock-up expiry

The restriction on founder and PIPE shares lifts and that stock becomes sellable.

What it means for you

A supply event with a date you could have known months in advance. Insiders who bought at a nominal cost can now sell into a market of people who paid $10.

Watch out

It is disclosed early and priced late by almost everyone. The date is in the merger documents from the day the deal was announced.

Filed as · S-4 or the merger agreement

Weeks before the deadline

Extension vote

The sponsor asks shareholders to move the deadline, usually offering to deposit more money into the trust in exchange for the time.

What it means for you

A second exit. Anyone who does not want to keep waiting can redeem at trust value here, and this window is real cash on the table for anyone who bought below trust.

Watch out

Extension votes routinely see most of the trust walk out of the door, which shrinks the SPAC and changes the arithmetic of any deal that follows. Easy to sleep through if you are not reading the mail from your broker.

Filed as · DEF 14A, then an 8-K with the result

12 to 24 months after the IPO, per the charter

Charter deadline

The date by which a combination must have closed. Announce, extend, or return the money — there is no fourth option.

What it means for you

The only forcing function a SPAC has. A sponsor with weeks left and nothing signed is a motivated party, and motivated parties do not negotiate well.

Watch out

There is no standard deadline. It is whatever this SPAC’s charter says, which is why "SPACs have two years" is a bad way to hold one.

Filed as · The charter, restated in every 10-Q

Within 10 business days of the deadline

Liquidation

The trust is divided among the public shares and paid out in cash. The sponsor’s founder shares and every warrant on issue expire worthless.

What it means for you

If you bought at or below trust value this is not a loss — it is the structure doing exactly what it says. You get your money and the interest it earned while it sat there.

Watch out

Anything paid above trust value is gone, and every warrant goes to zero regardless of what was paid for it. This is the outcome the warrant leg is priced against.

Filed as · 8-K, then Form 25

The two lower groups are alternatives, not later stages: a SPAC either closes a combination or runs out the clock and hands the trust back. Every timing above is the market's usual convention — the only thing that binds a particular SPAC is its own charter. Educational only, and not a recommendation; see the disclaimer.

The same sequence, as an essay.

Why the structure works the way it does, what the sponsor is paid, and the ten dates worth putting in a calendar.

The SPAC lifecycle