Fusion’s initial trust amount of $305 million could rise to $350 million if the underwriters’ over-allotment option is exercised in full.
For investors in Fusion’s IPO, a successful outcome depends on the company’s ability to make an acquisition and take it public. With SPACs, the clock starts ticking after they go public and they have a set time period to make an acquisition. In the case of Fusion, if it doesn’t make an acquisition within 18 months the money in the trust is returned to the company’s shareholders.
In other words, it’s not a given that Fusion’s stated business goals will come to fruition.
“We've identified a lot of potential targets because not every target we identify will be interested in going public,” Ross said.