For those unfamiliar with blank checks, they are companies with no formal operations, but are formed with the express intent of acquiring, restructuring, engaging in share exchanges, or combining with other similar businesses. Typically, the company has a certain time frame in which it is required to execute a transaction. Otherwise, the entity is liquidated. In the case of BCACU, it has 21 months from the closing of this IPO to complete an initial business combination.
BCACU intends to focus on businesses that have their primary operations located in Asia and North America in the media/entertainment, consumer services and healthcare industries. To date, it has not identified any acquisition targets. Additionally, it has not engaged or retained any agent or other representative to identify or locate any suitable acquisition candidate.
The company anticipates structuring its initial business combination to acquire 100% of the equity interest or assets of the target business or businesses. It may, however, structure its initial business combination to acquire less than 100% of such interests or assets of the target business, but it will only consummate such business combination if it will become the majority shareholder of the target.
Its sponsor, Bison Capital Holding Company, is an investment firm and a provider of financial, advisory, investment, and funds management services, primarily focused on China-related investment opportunities in the healthcare, medical, pharmaceuticals, entertainment, media, tourism, high technology industries. Bison Capital comprises advisory, capital raising, principal investing and asset management capabilities.
Also, BCACU's officers and directors have a broad range of operational experience across a variety of economic sectors, including, without limitation, healthcare, medical, pharmaceuticals, entertainment, media, tourism, high technology, asset management, financial advisory, and investment management. Over the course of their careers, the members of its management team have developed a broad international network of contacts and corporate relationships that it believes will serve as a useful source of investment opportunities.
At December 31, 2016, its sponsor had assets of $336.2 million and shareholders’ equity of $279.0 million. BCACU generated net income of $22.8 million and revenues of $50.0 million for the year ended December 31, 2016. BCACU's sponsor does not guarantee that it will maintain the level of assets it had at December 31, 2016 in the future, and may enter into other agreements and take on additional liabilities, including ones that can have a significant effect on its financial stability.
Including the proceeds from this IPO, BCACU has working capital of approximately $51.8 million, as of March 31, 2017. Also, on a pro forma basis, it has no liabilities on the balance sheet.