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Sightline Wealth Management’s Paul de Sousa Discusses SPACs with CTV News

As traditional IPOs continue to decline, another way of taking a company public has taken over: special purpose acquisition companies (SPACs). Also known as a “blank-cheque company,” a SPAC is essentially a shell company that is set up by investors with the sole purpose of raising money through an IPO to eventually acquire another company. While the traditional IPO model can be expensive and time-consuming, SPACs have become an attractive alternative for private companies that are interested in going public quickly and at a lower cost.

Companies are not the only ones interested in SPACs. This unique approach also caught the attention of novice investors, with many rushing to incorporate SPACs into their portfolios. But what should investors look for when selecting the right SPACs for their portfolios? CTV News turned to Sightline Wealth Management Vice President and Investment Advisor Paul de Sousa for insight.

When it comes to building a SPAC portfolio, de Sousa recommends one that is professionally managed by an advisor with excellent deal flow and a conservative strategy. According to de Sousa, the key is the entry price. While most investments can go to zero, a SPAC has a net asset value of $10 and returns investors’ capital if they are not interested in the acquisition.

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Sightline Wealth Management LP (“Sightline”) is an investment dealer and is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). Sightline provides management and investment advisory services to high-net-worth individuals and institutional investors primarily through fee-based accounts. 

Sightline Wealth Management LP is a wholly owned subsidiary of Ninepoint Financial Group Inc. (“NFG Inc.”). NFG Inc. is also the parent company of Ninepoint Partners LP, it is an investment fund manager and advisor and exempt market dealer. By virtue of the same parent company, Sightline is affiliated with Ninepoint Partners LP. Information and/or materials contained herein is for information purposes only and does not constitute an offer to sell or solicitation to purchase securities of any issuer or any portfolio managed by Sightline Wealth Management or Ninepoint Partners, including Ninepoint managed funds.

Sightline Wealth Management (“Sightline”) makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, Sightline assumes no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. Sightline is not under any obligation to update or keep current the information contained herein. The information should not be regarded by recipients as a substitute for the exercise of their own judgment. Past performance is not indicative of future performance. Please speak to your Advisor regarding the suitability of information provided in this article for you. The opinions, estimates, projections and/or recommendations contained in this document are those of the author as of the date hereof.

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