Entire Section

  • Escrow Account

    • 18B.16

      A SPAC must hold 100% of the gross proceeds of its initial offering (excluding proceeds raised from the issue of Promoter Shares and Promoter Warrants) in a ring-fenced escrow account domiciled in Hong Kong.

    • 18B.17

      The escrow account referred to in rule 18B.16 must be operated by a trustee or custodian whose qualifications and obligations are consistent with the requirements of Chapter 4 of the UT Code.

    • 18B.18

      The monies held in the escrow account referred to in rule 18B.16 must be held in the form of cash or cash equivalents.

      Note:    It is the SPAC’s responsibility to ensure that funds are held in a form that allows them to meet the requirement to give full redemption to shareholders under rules 18B.57 and 18B.74. The Exchange may publish guidance on the Exchange’s website, as amended from time to time, on its interpretation of “cash equivalents” for the purpose of this rule.
       

    • 18B.19

      Save as permitted under rule 18B.20, the monies held in the escrow account referred to in rule 18B.16 must not be released to any person other than to:
       
      (1)    meet redemption requests of the SPAC shareholders in accordance with rule 18B.59;
       
      (2)    complete a De-SPAC Transaction;
       
      (3)    return funds to SPAC shareholders in accordance with rule 18B.74; or
       
      (4)    return funds to SPAC shareholders upon the liquidation or winding up of the SPAC.
       
      Note:    Save as permitted under rule 18B.20, the expenses incurred by a SPAC before the De-SPAC Transaction must not be funded from the monies held in the escrow account referred to in rule 18B.16.
       

    • 18B.20

      Any interest, or other income earned, on monies held in the escrow account referred to in rule 18B.16 may be used by a SPAC to settle its expenses.