In today’s episode, we break down the role of sponsor lockups in SPAC transactions. Lockups are contractual periods where sponsors are restricted from selling their shares, often ranging from 6 to 24 months post-merger. These agreements are designed to align the sponsor’s interests with the long-term success of the company, providing confidence to PIPE investors and public shareholders alike.
We’ll explore how lockups can include performance-based triggers—such as share price thresholds—and why institutional investors frequently request them as part of their due diligence process. Whether you’re a SPAC sponsor, investor, or simply looking to understand capital markets better, this episode will help you grasp why lockups matter and what they signal about sponsor commitment.
Disclaimers:
The views, opinions, and statements expressed by the guest are solely their own and do not necessarily reflect the views of The SPAC Podcast, its hosts, or affiliated organizations. This content is for informational purposes only and should not be construed as investment, legal, tax, or accounting advice.
Michael J. Blankenship is a licensed attorney and is a partner at Winston & Strawn LLP. Joshua Wilson is a licensed Florida real estate broker and holds FINRA Series 79 and Series 63 licensure. The content of this podcast is intended for informational and educational purposes only and should not be interpreted as legal, financial, or compliance advice. The views and opinions expressed by the hosts and guests are their own and do not necessarily reflect the official policies or positions of any regulatory agency, law firm, employer, or organization.
Listeners are encouraged to consult their own legal counsel, compliance professionals, or financial advisors to ensure adherence to applicable laws and regulations, including those enforced by the SEC, FINRA, and other regulatory bodies. This podcast does not constitute a solicitation, offer, or recommendation of any financial products, securities transactions, or legal services.
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