SPACs are blank-check companies that have no operations but go public with the intention of merging with or acquiring a company with the proceeds of the SPAC’s initial public offering. SPACs are structured to offer almost no downside risk as long as you sell before a business combination is actually finalized, and there is good upside potential from warrants or rights from the more successful deals.
In this article, I will be discussing a specific SPAC investment that looks attractive now - EdtechX Holdings Acquisition Corporation (EDTX). It was a newly organized blank