Jay Ritter

This SPAC is merging with an already-public company as sponsors get creative before time runs out

SPACs are known to be a roundabout investment vehicle to take private companies public. Not this one. Bull Horn Holdings is merging with biotech Coeptis Therapeutics, a public company traded over the counter.

It remains to be seen if other sponsors would replicate Bull Horn’s model. It is not uncommon for a stock traded over-the-counter to have a public offering and call it an IPO, according to Jay Ritter, Cordell Eminent Scholar. 

“The market is skeptical about the ability of the SPAC to complete the merger without massive redemptions,” Ritter said.

Read more insights from Ritter in this story from CNBC