The SPAC lifecycle first, you set up your Shell company and then that SPAC goes through an IPO. Outside investors get the chance to put their funds into the business. That means that the cash that's raised is placed into a trust account to make sure management can't run off with it. Next up, the target company is identified. PIPE financing is arranged just in case you don't have enough funding available, and cash is released when the merger with the target company is completed. This is always done at $10 per share. The target company is now listed and that's called DE-SPACing.

SPACs typically have two years to find a private company target to merge with. This limit is put in place by the shareholders to make sure their cash isn't sat around for years and years on end, not earning a return. If the SPAC does want to try and extend that, they can ask the shareholders for an extension and typically they might get an extra couple of months.

If no suitable target is found or the shareholders disagree with the targets, the SPAC is then liquidated.