Start-ups go public with SPACs?

SPAC is also known as “The Blank Check Company”. After SPAC launches and shares trades in the stock exchange, the raised capital will be safely deposited into a third-party custodian. The money, which will earn interest, will be locked for 2 years maximum.

As soon as the IPO is completed, the Management team starts searching for a private company to acquire and negotiating with responsible people in the targeting company. After reaching an acquisition agreement with the target, the Management team has to propose their plan to the shareholders and start voting to get shareholders’ consensus. The acquisition process can be kicked off and money can be withdrawn from the custodian account for settlement when the majority shareholders support the deal. Shareholders, who do not agree to the acquisition, can redeem their shares and get their money back from the custodian.

When the acquisition is completed, SPAC and the acquired company will merge into one company. The stock exchange will assign a new industrial classification and new stock code to the merged company, meaning DE-SPAC. In 2019, Social Capital’s IPOA SPAC acquired Virgin Galactic, the SPAC ticker ‘IPOA’ was replaced by ‘SPCE’ immediately.

However, if the Management team is not able to complete an acquisition within 2 years, the SPAC will be dissolved and the capital less IPO fee will be refunded to all investors.

Written by Ms. Florence Ip

SPAC IPO Listing on Nasdaq In 90 DAYS?!

What is SPAC?

SPAC is known as Special Purpose Acquisition Company which is a public listing company with no operating business. It usually consists of a Management team, a Sponsor and a group of small public investors.

At the very beginning, the management team, who are the financial expert, private equity fund managers or famous CEO, generate any investment idea, create a shell company and sell to the public.  The more reputation the manager has, the better the roadshow story is, the more money will go after his idea. In Jun 2020, a U.S. Hedge Fund Manager, Bill Ackman, had raised the largest SPAC offer, U$4 billion. Investors believed in his investment ability and his track record, hoping the share price of his SPAC to rise in the future.

Moreover, Anthony Leung, the former Financial Secretary of Hong Kong, had raised U$200 million through SPAC with the investment idea of healthcare technology in China in 2018. 

Sometimes an entrepreneur of a start-up company is the Sponsor. Sometimes few private investors buy in an interesting idea from Management, becoming the Sponsors. Otherwise, the Management team, who funds themselves at an early stage, is the sponsor too.

The Process of SPAC Listing

The process of listing a SPAC is much easier than a traditional IPO because it is only a shell company without commercial operation or financial history. The SEC needs to take only 3 to 4 months to review. Besides, SPAC requires little preparation work, small administration costs and only one underwriter anyway.

With the approval from the SEC and the Sponsors, SPAC will allocate 20% of total shares which is known as ‘founder shares’ to sponsors, sell the remaining 80% to public investors at U$10 per share in a stock exchange. Normally, warrants will be given to shareholders to gain their long-term investment commitment. 

Written by Ms. Florence Ip

Congratulate Normsun & Co being enlisted under the D-Biz Programme!

Tags

COVID-19, D-Biz, Normsun, STAR-CFO

Congratulate Normsun & Co (“Normsun”) being enlisted as one of the service providers under the D-Biz Programme!

Due to the coronavirus outbreak, the HK Government launches the Distance Business Programme (“D-Biz Programme”) which offers a qualified HK Company to apply for 100% funding support for up to 3 digital transformation projects (with a cap of HK$100,000 each).

Normsun is offering its STAR-CFO™ solutions including (a) Financial Management; (b) Human Resources Management; (c) Remote Document Management that can be covered through the D-Biz Cat6, Cat7 and Cat 8 D-Biz projects:

• Category 6: Online / cloud-based financial management systems
• Category 7: Online / cloud-based human resources management systems
• Category 8: Remote document management, cloud storage, and remote access services

You may enjoy adopting the solutions for a budget within HKD300K and get a 100% project cost refund by the HK Government!

Riding on the D-Biz application’s success, you can turn the current marketing threats into opportunities! You may achieve your business success through the leapfrog of technology riding on adopting our STAR-CFO™ offers!

Don’t miss this golden opportunity! Please click the link now and our corporate advisory arm (ACH Worldwide Ltd) can help you learn more about these and support you for the application.

Workout at Home during COVID-19 Pandemic!

Tags

COVID-19, homeGym, Workout

Move-It Home Gym: IOT Equipment + App + Community +  interactive Podcasting + Broadcasting

Eggplant’s “Move-it Home Gym” achieves significant growth in (a) # of subscribers (b) # of monthly active users (c) VIP contents subscription revenue:

(a) Increase in Number of registered Users X39
(b) Increase in Number of monthly Active Users X12
(c) VIP contents subscription revenue X3

#workout
#homeGym
#eggplant

Move-It Creates Home Gym & Facilitate Home Rehabilitation!

Tags

Gym, Technology, WFH, Work Form Home

Due to COVID-19 pandemic, people are recommended to reduce social contact. Adults are asked to work from home, students are forced to study at home and patients prefer to rehabilitate at home!

From Home Office to Home Gym

The global lockdown forces many workers to work from home and to practice social distancing. People around the globe keep in touch using FaceTime, Zoom and Team.  At the same time, the lockdown prevents many people from attending gyms while the pandemic reminds us to be more health conscious. Fortunately, a Hong Kong start-up Eggplant Technology with IoT products branded under Move-It brings the gym experience to home using apps and IoT devices like smart dumbbells and some other smart workout equipment. These devices measure the user movements so that the users can receive immediate feedback from live coaches anywhere in the world. All the data collected by the devices can help coaches monitor the progress of a user. With the advent of AR/VR, we believed that the home gym experience will become closer and closer to the real thing.

From Home Gym to Home Rehabilitation

Dumbbells are prevalently used in physiotherapy to help prevent injuries or in adding in the rehabilitation of an injury (Cornell, 2020). Dumbbells can target specific muscles in ligaments in abdomen, shoulder, chest and arm etc. Patients can use different weights of dumbbells (from low to high) to perform a proper form of exercise taught by physiotherapists, targeting the specific muscles in need of strengthening. Evidence suggested that exercising for 20-45 minutes, 3-4 times per week are effective on muscle strength, balance and frailty (Hartmann-Boyce, Davies, Frost, Bussey 2020).

This can reduce the service availability of some rehabilitation services such as Physiotherapy and Occupational Therapy, furthermore, it might not be feasible for some patient to access their rehabilitation program in hospitals.  Using Smart Dumbbell as an interactive workout device may allow physiotherapy, occupational therapy patients to perform rehabilitation exercises at home. This can reduce the social contact of patients from going out to hospitals for rehabilitation programmes and reduce the risk of infection.

Move-It Smart Solutions

Move-It Smart Dumbbell can be designed to sense and record a large variety of body movements. The duration, stability, accuracy and heartbeat will also be recorded while patients are doing their rehabilitation exercise. Exercise designed by health professionals can be pre-recorded in the Smart Dumbbell application and assign to patients daily according to their individual needs.

 

 

Merry Christmas filled with Awesome Joy, Charming Smiles and Happiness!

Christmas is a season of great joy: a time for remembering the past and hoping for the future. May the glorious message of peace and love fill you with ….Awesome joy, Charming smiles and Happiness during this wonderful season and throughout the coming year!

Have innovation starting from STEM Education! Hong Kong needs to hurry up! 創科由STEM教做起 港落美歐

先進國家和領先城市的經驗表明，讓STEM工作坊進入正規的教育課程內，將這些STEM科技課程作為通識課程中孩子們可選擇的內容，可以讓孩子們朝著面向世界的科技創新目標，從小就受到更具突破意義的批判性思維能力和動手實踐能力的訓練，從而建立起對STEM 領域和行業的感性認知，啟發創新精神和激發創意潛能，為今後成長為社會創新發展所需要的復合型、創造型人才奠定堅實的基礎。當中的成功，不僅關乎硬件設備是否準備就緒，資本投入是否足夠，更關乎涉及教育的官員、教師和相關人士，乃至每一個香港市民，是否真正願意負責任地關心孩子們的未來，是否願意與孩子一同努力提升自己的STEM知識能力。