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S 1504 117th Congress Senate Finance and Financial Sector Administrative law and regulatory procedures Corporate finance and management Financial services and investments Securities Securities and Exchange Commission (SEC)

Sponsor Promote and Compensation Act

Introduced: April 29, 2021 Introduced by: Kennedy, John Republican · Louisiana See on congress.gov
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 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Apr 29, 2021
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Apr 29, 2021
Introduced in Senate
 Plain-English summary Congressional Research Service

Sponsor Promote and Compensation Act

This bill establishes additional disclosure requirements for a blank check company (e.g., a special purpose acquisition company) during an initial public offering or prior to a merger. A blank check company is a development stage company that issues a penny stock and (1) has no specific business plan or purpose, or (2) has indicated that its business plan is to merge with a company or companies.

Specifically, the bill requires such a company to disclose

  • the amount of cash per share expected to be held by the blank check company immediately prior to the merger under various redemption scenarios;
  • side payments or agreements to pay sponsors, blank check company investors, or private investors in public equity for their participation in the merger; and
  • fees or other payments to the sponsor, underwriter, and any other party.
What's happening now April 29, 2021

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

 Committees of jurisdiction 1