This article is from www.blocknews.com.br and the original article can be read here in Portuguese
Aura FAT Projects Acquisition Corp , a special purpose acquisition company (SPAC, acronym in English) reported this week that he managed to raise US$ 115 million on the Nasdaq exchange (the United States). The fund has the objective of buying companies related to blockchain, cryptos, web3, distributed ledger (DLT), e-games and other new financial technologies.
The financial market also calls SPACs “blank check companies”. They work like this: SPAC has no operation. Then, it makes a public offering of shares on a stock exchange, or IPO, for its acronym in English. That way, you get money. With these investor resources, it commits to buy companies that have good potential to also be listed on the stock exchange. An advantage of this is that this maneuver reduces the bureaucracy to IPO the companies that the fund buys.
In the case of Aura, the funding was US$ 100 million in the IPO on April 13th. But there was a surplus allocation of US$ 15 million, so the operation ended on the 18th. The company sold 10 million units at US$ 10 each.
Crypto Fund Looks to Asia
According to the fund, there is no limitation to one type of industry or geographic region. However, there is a lot of interest in markets with very high growth potential in Southeast Asia, New Zealand and Australia. The company says it wants to be a leader in the region in SPAC.
This strategy is related to the origin of Aura. That’s because SPAC is a joint venture between Aura Group and Fat Projects. Both were born in Australia but later moved to Singapore. At the end of 2021, Aura said it had around BRL 3.82 billion in assets under management or under its advice. The crypto-focused background registered in the Cayman Islands. Its professionals are in Silicon Valley (California), Europe, Southeast Asia and Australia.