AUM Media's Crocker Coulson to Speak at the SPAC Conference 2021
Panel on "SPAC Incentive Structure" to focus on aligning incentives of SPAC sponsors, target management, PIPE investors, and underwriters with deal success
NEW YORK, June 21, 2021 /PRNewswire/ -- AUM Media Inc. announced that Crocker Coulson will be speaking on a panel on "SPAC Incentive Structure" at 4:15 p.m. on June 23rd at The SPAC Conference 2021, the largest gathering of SPAC sponsors, investors, and professional advisors in the world.
The conference will take place on June 23rd and 24th at the Westchester Country Club. For registration or virtual attendance information, register here. Media interested in covering the event should contact Beth Amorosi of AUM Media at [email protected].
Other speakers on the panel include:
- Marc Gabelli, Chairman, and CEO of LGL Systems Acquisition Corp.
- Dave Horin, Managing Partner of Chord Advisors
- Moderator, Steven Nelson, President & Chairman, Continental Stock Transfer & Trust Company
"The SEC has expressed considerable anxiety over how the incentives of SPAC sponsors may diverge from those of public shareholders, and unsophisticated public shareholders in particular," commented Crocker Coulson, Founder of AUM Media Inc. "Among the concerns expressed in the SEC's recent bulletin of May 25th: Sponsors may have an incentive to do deals that are unlikely to generate positive returns post-merger as the clock runs out on their deals, but still enable SPAC sponsors to cash out on favorable terms. The sheer volume of SPACs may lead to a shortage of viable targets of significant scale to absorb the capital that these SPAC teams have raised or overpaying for the limited targets that exist."
"Regulators face the quandary of trying to solve a problem of incentives with a tool kit consisting exclusively of disclosure and enforcement. Disclosure is frankly ineffective in addressing misalignment of incentives since the investors most likely to be fleeced frankly do not read the disclosures. Enforcement is by definition an after-the-fact solution of trying to put the yolks back in the broken eggs," Coulson continued.
"It is in the interest of all participants in the SPAC market, all of whom have profited handsomely from the boom of the past two years, to consider market-based solutions that better align the rewards to market insiders – including SPAC sponsors, underwriters, target management, and PIPE investors – with the long-term success of the enterprises and reasonable returns for public market investors pre- or post- de-SPAC," Coulson said.
"Not only will these solutions be more effective in addressing to root causes, but such voluntary market reforms may also abate enthusiasm for more onerous regulations being floated in Congress and the SEC that would effectively undermine the SPAC value proposition as a fast-track pathway to public status and growth capital for industry disruptors with rapidly scaling businesses."
About AUM Media Inc.
AUM Media believes that corporate strategy needs to be informed by the best ideas from all stakeholders but ultimately owned by senior management and the board. We partner with our clients to make sure that key messages are aligned across all channels. Our customized services include investor relations, capital markets advisory, media relations & thought leadership, corporate communications, digital marketing, and design. For more information, visit https://www.aummedia.org
Media Contact:
Beth Amorosi, Media Relations Director
AUM Media Inc.
[email protected]
(917) 208-7489
SOURCE AUM Media
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