NEO SPAC

Investors in a SPAC are provided with the opportunity to invest in an experienced management team seeking to acquire or merge with high-potential growth companies, while benefitting from robust investor protection mechanisms.

Other similar listed vehicles have not been designed to address the large growth company opportunity and, in the case of a Capital Pool Company ("CPC"), may expose investors to significant risks.

The structure and features of the SPAC embody a rigorous review process and enhanced investor protection that ultimately lead to quality transactions. Also critical to the success of a SPAC is its listing strategy. Benefitting from the experience of 10 SPAC listings, NEO provides SPAC issuers with a wealth of insights and recommendations regarding such strategy at the time of listing and at the time of the qualifying transaction (“QT”).

NEO SPAC Key Features

• A minimum IPO of at least $30,000,000, at least 90% of which must be held in escrow
• Founders’ equity ownership in the SPAC of not more than 20% immediately following the closing of the IPO excluding any securities purchased at or prior to the closing of the IPO at not less than the IPO price
• A QT to be completed within 36 months
• The QT resulting issuer must meet NEO’s initial listing standards
• A prospectus in connection with the SPAC IPO and QT
• A redemption feature for the IPO investors at the time of the QT
• The QT is not subject to shareholder approval if 100% of the funds resulting from the IPO are held in escrow
• In the event the SPAC fails to complete a QT within the permitted time, the escrowed funds will be returned to the investors on a pro rata basis