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Enhanced Transparency Rules for Blank Check Companies (SPACs) and Investor Protection.

This Act mandates the Securities and Exchange Commission (SEC) to create new, clear disclosure rules for "blank check companies" (like SPACs) during their initial public offerings and before mergers. The goal is to reveal all hidden fees, sponsor compensation, and potential stock dilution risks, ensuring individual investors can make fully informed financial decisions. This legislation aims to provide citizens with a clearer picture of the actual cash value remaining in the company post-merger.
Key points
Companies must disclose the expected cash amount per share remaining immediately before a merger under various investor withdrawal scenarios.
Mandatory disclosure of all side payments or agreements made to sponsors and private investors, including the dilutive impact of any warrants or rights issued.
The SEC must ensure these complex financial details are presented explicitly and clearly, especially for individual, non-professional investors.
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Expired
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Additional Information
Print number: 118_S_1901
Sponsor: Sen. Kennedy, John [R-LA]
Process start date: 2023-06-08
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Sponsor Promote and Compensation Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_1901.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-06-08.

What are the main provisions?

Key points include:

  • Companies must disclose the expected cash amount per share remaining immediately before a merger under various investor withdrawal scenarios.
  • Mandatory disclosure of all side payments or agreements made to sponsors and private investors, including the dilutive impact of any warrants or rights issued.
  • The SEC must ensure these complex financial details are presented explicitly and clearly, especially for individual, non-professional investors.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Kennedy, John [R-LA].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Economy