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Once the SPAC has raised sufficient capital through the IPO, it uses the funds to search for and acquire a private company, which is then taken public through a reverse merger. The funds that SPACs raise in an IPO are placed in an interest-bearing trust account that cannot be disbursed except to complete an acquisition. These include white papers, government data, original reporting, and interviews with industry experts. It must undergo a process known as an IPO.
