blank-check company

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Related to Blank check company: Special purpose acquisition company

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 ?
NEW YORK, June 30, 2011 /PRNewswire/ -- Azteca Acquisition Corporation (the "Company") (OTCBB: AZTAU), a newly-organized blank check company formed for the purpose of acquiring or merging with an operating business, today announced the pricing of its initial public offering of 10,000,000 units at a price of $10.
is a blank check company formed for the purpose of effecting a business combination with one or more operating businesses.
China VantagePoint Acquisition Company is a blank check company recently formed for the purpose of acquiring, through a merger, stock exchange, asset acquisition or other similar business combination, an unidentified operating business.
is a blank check company formed for the purpose of effecting a merger, share capital exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more operating businesses.
is a special purpose acquisition company ("SPAC"), also known as a blank check company, a publicly traded vehicle that raised gross proceeds of $143.
the "Company") (OTC Bulletin Board: FTWAU), a newly-organized blank check company formed for the purpose of acquiring or merging with an operating business in either the global business services sector or emerging Asian markets including China and India, announced today it has closed its initial public offering of 2,200,000 units at a price of $10.
SPORTS PROPERTIES ACQUISITION CORP IS A BLANK CHECK COMPANY ORGANIZED FOR THE PURPOSE OF EFFECTING A MERGER, CAPITAL STOCK EXCHANGE, ASSET OR STOCK ACQUISITION, EXCHANGEABLE SHARE TRANSACTION OR OTHER SIMILAR BUSINESS COMBINATION OF ONE OR MORE DOMESTIC OR INTERNATIONAL OPERATING BUSINESSES.
is a blank check company formed for the purpose of acquiring one or more assets or control of one or more operating businesses in the technology, media or telecommunications industries through a merger, capital stock exchange, stock purchase, asset acquisition or other similar business combination.
is a blank check company incorporated on June 26, 2006 for the purpose of effecting a merger, capital stock exchange, stock purchase, asset acquisition or other similar business combination with an operating business in the communications, media or technology industries.