'A self-parody of a SPAC': The mysterious $100 million New Jersey deli is actually an investment vehicle backed by a firm in Hong Kong
"[This] is a self-parody of a SPAC, and that is what I would expect at the end of a bubble," Columbia University law professor John Coffee told the Financial Times.
That's SPAC-talk for"we are shopping for any potential deal with our cash." At the end of the day, Hometown International is a shell company that hopes to execute a reverse merger with a larger, more successful private company, but also happens to operate an actual deli in the meantime.
"[Hometown] is a more flexible structure...with a longer time to find a target, and a better economic uplift," Jain said. Most SPAC vehicles only give the managers two years to locate and execute a deal, or else they are required to return investors money. A corporate shell that is seeking a reverse merger has no such time requirement.
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