African Gold Acquisition Corp - AGAC - Share chat

This is a blank check company that has not yet selected any specific business combination target. It intends to focus its search on gold mining businesses.

Is it actually worth investing in blank check companies

There are upsides to SPACs but I couldn’t personally recommend those upsides unless you really know what you’re investing in.

The downside is you’re trusting your money blind to a management team with nothing more than an indication of the sector they’re looking at. Now, this could mean that they obtain a better price for their investors than they would have paid for an equivalent final stake in the target company at an IPO; the downside is they could be investing in a bad deal and you’d be none the wiser until too late.

This particular one could be a good investment, or not. My point is a general one rather than intended to suggest that the specific stock should not be given consideration.

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Thank you. Think I’ll be giving them a miss for now