- Austria's far right woos anti-vaxxers with fund for vaccine 'victims'
- Long wait for justice in India's backlogged courts
- Rohingya refugees detail worsening violence in Myanmar
- Rescuers comb muddy riverbanks after Japan floods kill six
- Sri Lankan leftist leader sworn in after landslide election win
- Indonesia, NZ deny Papua rebel claim 'bribe' paid for pilot release
- Swearing, shoeys and swift legs: Singapore GP talking points
- South Korea warns of 'decisive' action against trash balloons
- Football Australia names Tony Popovic as Socceroos coach
- Japan quake, flood victim attempts fresh start with wife's memory
- Japan quake, flood victim attemps fresh start with wife's memory
- Asian markets extend gains as focus turns to US inflation
- Six dead after floods in central Japan: media
- Australian golf prodigy suffers career-threatening eye injury
- Gaza hospital a symbol of the ruin of war
- October 7: how Israel's deadliest day unfolded
- Bibles, sneakers, silver coins: Trump's merch for sale
- Met Opera opens season with tech-heavy 'Grounded'
- Colombia's Inirida flower: from 'weed' to emblem for UN meeting
- Colombia rebel group imposes control in restive coca zone
- Rams fight back to upset 49ers, Cowboys lose again
- Sri Lankan leftist leader to take office after landslide election win
- 300-kilo WWI bomb removed in Belgrade
- Zelensky in US to explain war plan to Biden, Harris, Trump
- 'Atrocious' Sudan war pushing refugees further afield: UNHCR chief
- 'Convergence' growing on global plastics treaty: UN environment chief
- MLB White Sox fall to Padres to match one-season loss mark
- All-Australian Ripper squad captures LIV Golf team crown
- Barnier promises compromise from France's embattled new govt
- Zelensky arrives in US to explain war plan to Biden
- Barca rout Villarreal but Ter Stegen hurt, Atletico draw at Rayo
- Darnold shines for Vikings, Steelers and Eagles win
- Atletico held to draw at Rayo Vallecano
- Marseille stun Lyon with 95th-minute winner after early red card
- Gabbia ends AC Milan's derby pain with late winner against Inter
- Surging Ko claims LPGA Queen City crown in spectacular style
- 'Impossible': Alcaraz shoots down Federer comparisons after Laver Cup win
- Scholz's party beats far-right AfD in east German state vote
- Verstappen says 'silly' swearing row could hasten F1 exit
- Calls for Israel and Hezbollah to step back from the abyss
- Israel and Hezbollah urged to avoid 'catastrophe'
- Colombia battles fires as drought fuels Latin American flames
- Pressure piles on new French government from day one
- Arteta proud as Arsenal salvage point from 'impossible' task
- Barca rout Villarreal in thriller but Ter Stegen hurt
- Roma stroll past Udinese as fans protest De Rossi sacking
- Horschel outduels McIlroy to win PGA Championship play-off
- Audiences summon 'Beetlejuice' to top of N. America box office for third week
- Stones salvages point for Man City against 10-man Arsenal
- Egypt fears 'all out' regional war: foreign minister to AFP
US regulators tighten rules on deals with shell companies
US securities regulators proposed Wednesday new rules for shell investment companies, tightening a pathway for businesses to go public that has been criticized for skimping on investor protections.
The new rules seek to place firms that are set up with the sole purpose of merging with another entity, known as special purpose acquisition companies (SPACs), on an equal plane with companies participating in traditional initial public offerings (IPOs).
The move comes after a surge of SPAC deals in 2020 and 2021 and with well-known companies ranging from Virgin Galactic and WeWork to several celebrity-linked ventures employing the tactic.
The new rules require additional disclosures about SPAC sponsors, conflicts of interest and sources of equity dilution, said the Securities and Exchange Commission, which will launch a public comment period on its 372-page proposal.
The proposal also removes a SPAC advantage that granted such firms protection from lawsuits if their forecasts are not met -- a feature not available to traditional IPOs.
The shift reflects the fact that such projections "may lack a reasonable basis," the SEC said in a fact sheet.
The new measures on SPACs aim to "ensure that investors in these vehicles get protections similar to those when investing in traditional initial public offerings," said SEC Chair Gary Gensler.
"Investors deserve the protections they receive from traditional IPOs, with respect to information asymmetries, fraud, and conflicts, and when it comes to disclosure, marketing practices, gatekeepers, and issuers," he said.
The pace of SPAC offerings has slowed so far in 2022, with 53 deals involving US-listed firms which raised $9.8 billion, according to Dealogic.
In 2021, there were more than 600 transactions raising $162.6 billion, according to Dealogic.
L.Janezki--BTB