Over the years there have been many schemes to allow small early-stage companies to go public while avoiding all the compliance hassles of IPO public listings. Many of these involve mergers or acquisitions by entities that are already publicly listed. Most of these involve some form (there are several) of reverse takeovers (RTO). Here…
Over the years there have been many schemes to allow small early-stage companies to go public while avoiding all the compliance hassles of IPO public listings. Many of these involve mergers or acquisitions by entities that are already publicly listed. Most of these involve some form (there are several) of reverse takeovers (RTO). Here is an explanation of reverse takeovers on Wikipedia:
Sophisticated investors are well aware of the risk of fraud involved in RTOs and most avoid them like the plague. However, despite this, there are always less sophisticated or perhaps those just so greedy and gullible that they line up to participate in these schemes and their promise of success and riches. SPACs are just the latest in a long line of such RTO schemes.
Now, there are SPACs that have been formed by prominent investors with long track records of managing investment funds and are viewed to possess high levels of integrity. DWAC and its CEO, Patrick Orlando, are not among those. Rather Patrick Orlando is much more of a slimy bottom feeder and I suggest anyone considering investing in this latest scheme of his do a lot of due diligence on Mr. Orlando and his history and activities. His pairing with TFG Tя☭mp in this latest grift has all the markings of a major pump and dump Ponzi scheme.
Here is a bit of background on Patrick Orlando from Yahoo Finance:
Unfortunately, it is entirely likely that, as with most cons, there will be victims and those perpetrating the scheme are most likely going to walk away with buckets of money in their pockets. Just make certain it is not yours they walk away carrying.
Over the years there have been many schemes to allow small early-stage companies to go public while avoiding all the compliance hassles of IPO public listings. Many of these involve mergers or acquisitions by entities that are already publicly listed. Most of these involve some form (there are several) of reverse takeovers (RTO). Here is an explanation of reverse takeovers on Wikipedia:
https://en.wikipedia.org/wiki/Reverse_takeover
Sophisticated investors are well aware of the risk of fraud involved in RTOs and most avoid them like the plague. However, despite this, there are always less sophisticated or perhaps those just so greedy and gullible that they line up to participate in these schemes and their promise of success and riches. SPACs are just the latest in a long line of such RTO schemes.
Now, there are SPACs that have been formed by prominent investors with long track records of managing investment funds and are viewed to possess high levels of integrity. DWAC and its CEO, Patrick Orlando, are not among those. Rather Patrick Orlando is much more of a slimy bottom feeder and I suggest anyone considering investing in this latest scheme of his do a lot of due diligence on Mr. Orlando and his history and activities. His pairing with TFG Tя☭mp in this latest grift has all the markings of a major pump and dump Ponzi scheme.
Here is a bit of background on Patrick Orlando from Yahoo Finance:
https://www.yahoo.com/now/wuhan-linked-patrick-orlando-man-212753165.html
Here is the Wall Street Journal on DWAC:
https://www.wsj.com/articles/trump-spac-dwac-stock-what-to-know-11634918222
Unfortunately, it is entirely likely that, as with most cons, there will be victims and those perpetrating the scheme are most likely going to walk away with buckets of money in their pockets. Just make certain it is not yours they walk away carrying.
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