2305001 Informal Interpretation

She inberg, Samuel I.
From: 	HSRHelp
Se nt: 	Friday, May 26, 2023 9:57 AM
To: 	Wa lsh, Kathryn E. ; Berg, Ka ren E. ; Musi ck, Vessel ina ; Shaffer, Kr istin; She inberg, Samuel I.; Six, Anne;
Fetterman, Miche ll e
S ubj ect : 	FW: 801. 1(c)(3) guidance for "T rust Accounts"
Se nt : Frida , Ma 	26, 2023 9:56:47 AM
To:
Cc: 	e p < 	e p 	c.gov>
From: Whitehead, Nora < nwhitehead@ftc.go v>
UTC-05 :00) Eastern Time (US & Ca nada)
Subj ect : RE: 801.l (c )( 3) guidance for "Trust Accounts"
Correct.
From : HSRHelp <HSRHe lp@ftc.go v>
Se nt : Thursda y, May 25, 2023 12:28 PM
To: Walsh , Kathryn E. <kwalsh@ftc.gov>; Berg, Karen E. <KB ERG@ftc.gov>; Musi ck , Ves seli na <vmu si ck@ftc.gov>;
Shaffer, Kristin <kshaffer@ftc.gov>; She inberg, Samuel I. <SS HEINBERG@ftc.gov>; Six, Anne <asix@ftc.gov>; W hitehead,
Nora <nw hitehead@ftc.gov>; Fetterman, Michelle <mfetterman@ftc.gov>
Subject : FW: 801.l (c )( 3) gu idance for "Trust Accounts"
From:
Se nt : 	u rs ay, 	ay 	, 	(UTC-05:00) Easte rn Time ( US & Canada )
To: HSRHe lp < HSRHel p@ftc.gov >
Subj ect : 80 1.l (c )( 3) guidance for " Tru st Accounts"
Good afternoon, I' m see king some belts-and-suspenders guidance regarding how to interpr et assets held on a regular ly
prepared ba lance sheet of a SPA C.
A hy pothet i ca l SPAC, which is its own UPE, ho l ds most of its assets (cash) in w hat it ca lls a " trust account" . Pe r its l0 K,
the " trust account" reverts to the SPAC' s shareholders (not to the SPA C itself) in the ev ent a contemplated busi ness
acquisit ion does not ta ke place, and the SPAC has no reversionary interest in the account. The SPA C does not ha ve the
pow er to appoi nt 50% or more trustees. Howev er, the " trust account" and its contents appears on the l OK as pa rt of the
SPAC's assets.
M y assumption is that the " trust account" is not a true " trust " entit y, and should the r efo re be in cl uded when calcu lat ing
the assets that the SPAC "controls" for purposes of 801.l (c)(3) and determining a si ze of person test . Is th is assumption
correct?
Man y than ks,
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