blank-check company

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Blank-Check Company

A company that has not yet defined its business operations. Blank check companies issue penny stocks; the funds raised through a blank check offering must usually be placed in an escrow account until certain conditions have been met. Because a blank check company has not begun or even defined its operations, it effectively asks investors to trust it. Blank check companies are therefore subject to extra regulation to protect these investors from the possibility that the company is a fraud. In any event, investing in a blank check company is always speculative.

blank-check company

A company that issues penny stock in order to finance its involvement in establishing a business in which principal operations have not yet commenced. The company either has no business plan or plans to engage in a merger or acquisition with an unspecified business entity. Essentially, the company is given a blank check with regard to investors' money. Blank-check companies are required to provide certain information prior to and after the registration of securities. In addition, funds received from a penny stock offering must be placed in an escrow account for the benefit of the purchaser. See also Rule 419.
References in periodicals archive ?
A blank check company, Schultze was formed for the purpose of entering into a merger, stock exchange, asset acquisition, stock purchase, recapitalisation, reorganisation or other similar business combination with one or more businesses or entities.
GigCapital, Inc., a Delaware corporation that is an emerging-growth blank check company newly formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or similar business combination with one or more businesses, has announced the pricing of its initial public offering of 12,500,000 units at a price of USD 10.00 per unit, the company said.
is a blank check company formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalisation, reorganisation or other similar business combination.
Blank check company Chardan Healthcare Acquisition Corp (NYSE American:CHAC.U) said on Thursday that it has priced its initial public offering of 7,000,000 units at USD10.00 per unit.
New Jersey, US-based blank check company Jensyn Acquisition Corp.
TPG Pace Holdings Corp., a newly organized blank check company incorporated as a Cayman Islands exempted company and formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses, has closed its initial public offering of 45,000,000 units, which includes 5,000,000 units issued pursuant to the partial exercise by the underwriters of their over-allotment option, the company said.
UK-based blank check company Levrett plc (LSE: LVRT) has entered into a conditional agreement to acquire the entire issued share capital of UK-based pharmaceutical development firm Nuformix Ltd.
Electrum Special Acquisition Corporation is a blank check company formed for the purpose of acquiring, engaging in a share exchange, share reconstruction and amalgamation, purchasing all or substantially all of the assets of, entering into contractual arrangements, or engaging in any other similar business combination with one or more businesses or entities.
UK-based blank check company Silver Falcon plc (LSE: SILF) has agreed to acquire US-based biotech holding company Hemogenyx Pharmaceuticals Ltd.
The company is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, reorganization, recapitalization or other similar business combination with a target company.
25 August 2017 - Greek blank check company Stellar Acquisition III Inc.'s (NASDAQ: STLR) sponsors have deposited into the company's trust account, an aggregate of USD 402,536 (including interest earned on the funds in the Trust Account available for withdrawal), representing USD 0.058 per public share, the company said.
21 August 2017 - China-based blank check company Pacific Special Acquisition Corp.