LOS ANGELES—Stripchat.com has formed a special purpose acquisition company, or SPAC, that will be focused on the adult entertainment industry.
A SPAC is in essence a shell company with no actual commercial operations, but is instead dedicated to raising investment funds to purchase other companies. Such firms are often called “Blank Check” companies because their founders sometimes have at least one acquisition in mind, but they don't identify them to avoid extensive disclosures during the IPO process.
“The SPAC trend has taken the world by storm,” said Max Bennet, VP of New Media at Stripchat. “We’re excited to be the first adult technology investors planning to launch a blank check company focused on this space. Stripchat is not only bringing sexy back, but we’re also bringing sexy SPAC!”
According to Investopedia.com, SPACs have become more common in recent years, with their IPO fundraising numbers reaching a record $13.6 billion in 2019—more than four times the $3.2 billion that were raised in 2016. These efforts have also attracted big-name underwriters such as Goldman Sachs, Credit Suisse and Deutsche Bank, as well as major investors such as retired or semi-retired senior executives looking for a shorter-term gain.
