What is a SPAC? Well, SPAC stands for Special Purpose Acquisition Company, and it's an alternative process to an IPO or initial public offering. Let's compare a SPAC to an IPO. Well, a SPAC is where you take a private company public, which is like an IPO. Also in a SPAC, shareholders can exit just like an IPO. You are able to raise money just like an IPO, but SPACs are quicker, easier, and arguably there's less scrutiny than an IPO. Now, what the less scrutiny means is there's not less regulation. It's just because you are IPOing a completely empty company or shell company. The IPO process is much quicker, but don't worry, there is scrutiny later on down the line. Here we have a Shell company or SPAC, and the Shell Company or SPAC is set up with minimal funds by a sponsor. So at the moment we've got some people and we've got minimal funds, but we haven't got anything else. So the next thing that happens is that the Shell co does an IPO and outside investors provide funds. So we've now got a few people, we've got many more outside investors, and we've got lots of money. What we do now is the Shell Company uses those funds to acquire a target. Here we've got a target operating company, and that would be a private company.