ATIF Holdings (NASDAQ:ATIF) stock is on the rise Monday after announcing plans to create a special purpose acquisition company (SPAC) department.
Here’s what potential ATIF investors need to know about the SPAC news.
- ATIF Holdings is an L.A.-based holding group that handles asset management, investment holding, and online financial information.
- The company says that his new department will be responsible for the creation of a SPAC with the goal of taking another company public.
- This will have it handling the roles of founder, management team, and sponsor for the SPAC.
- ATIF Holdings notes that its goal is to generate profits by creating SPACs and having them target private companies with high growth potential.
- It notes that this could allow it to take private companies public just a few months after the SPAC completes its initial public offering (IPO).
- According to ATIF Holdings, there’s significant value in creating SPACs with the surge of private companies using them to go public.
- That includes 248 SPACs in the U.S. raising $83.4 billion in 2020.
- This movement continues into 2021 with 160 SPACs having raised $50.1 billion so far.
- A SPAC is a blank-check company that is created with the purpose of taking a private company public.
- This type of company is appealing as it allows a private company to go public without the hassle of dealing with the normal regulations surrounding an IPO.
- ATIF stock is seeing heavy trading with some 50 million shares having changed hands as of this writing.
- For comparison, the company’s daily average trading volume is 6.72 million shares.
ATIF stock was up 29.6% as of Monday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.