Day: September 3, 2020

Why Blank Check Companies (SPACs) Are Filling Up Fast

Companies that raise money for buying businesses. The reason they’re known as blank-check companies as they generally don’t have a merger target when they are formed. It’s as if investors are giving the sponsor of the SPAC a blank check to use as she sees fit.

SPACs raise money through an initial public offering that sells shares and warrants in a bundled unit usually at $10. SPACs usually have 24 months to identify and complete an acquisition. If investors of the SPAC dislike a planned purchase, they get to sell their shares but keep the warrants. That gives them the possibility of an upside even in transactions they opt out of, if a merger goes better than they expected. That combination is seen as making SPACs a safe bet especially during turbulent markets. Once the business combination is completed, the acquisition target becomes a public company.

The first recorded listing

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Teller Finance Integrating with Chainlink Ahead of Unsecured Lending Protocol Launch

Teller Finance, a blockchain project for decentralized lending, today announced its upcoming integration with Chainlink, the market-leading oracle provider, ahead of their public alpha launch. Chainlink will initially provide Teller with three cryptocurrency price feeds via its Price Reference Data oracle networks, these feeds will include DAI/ETH, USDC/ETH, and LINK/USD.

Teller uses an open-source protocol that interacts with consumer data to calculate default risk and offer unsecured crypto asset loans. Users can supply liquidity to the protocol’s lending pools and earn interest from repaid loans. Teller leverages borrowers’ credit history to calculate an annual interest rate (APR) that is based on market conditions vs. consumer credit risk, reducing or eliminating the need for collateral.

“Teller calculates consumer credit risk as a measure of personal financial data, e.g. debt to income ratio. The latter translates into an APR that is not only based on money market interest rate, but also takes

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Quicken Loans’ parent Rocket Companies shows $3.4B profit in first earnings report

Detroit-based Rocket Companies, the new publicly traded firm that includes Dan Gilbert’s Quicken Loans, announced a massive profit Wednesday in its first earnings report since its IPO last month.



a large skyscraper in a city: The Chase Tower, owned by Bedrock Real Estate Services, is home to Quicken Loans seen looking north of Woodward from One Detroit Center on Thursday, August 27, 2015, in Detroit.


© Salwan Georges, Detroit Free Press
The Chase Tower, owned by Bedrock Real Estate Services, is home to Quicken Loans seen looking north of Woodward from One Detroit Center on Thursday, August 27, 2015, in Detroit.

Rocket reported net income of $3.46 billion in the second quarter that ended June 30, compared to a net loss of $54 million during the same three-month period last year.

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More: Rocket stock price heats up on huge first earnings buzz

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More: Rocket Companies IPO priced at $18 a share, far below earlier estimates

The company also did a record $72.3 billion in closed loans, which was 126%

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