Key facts
- Rising Dragon Acquisition shareholders approved an extension for their business combination deadline.
Special Purpose Acquisition Companies (SPACs) are shell companies that raise capital through an IPO to acquire an existing private company. They are typically given a set timeframe to find and complete a business combination, often 18-24 months. If a SPAC fails to find a target or complete a merger within this period, it must liquidate and return the funds to its shareholders. Extensions are common and require shareholder approval.