Frequently Asked Questions

About SPACs, cash in trust, and PrimeRisk data.

What is a SPAC?

A Special Purpose Acquisition Company (SPAC) is a blank-check company that raises capital through an IPO for the purpose of acquiring an existing private company. Investors' IPO proceeds are held in an interest-bearing trust account until a deal closes or the SPAC liquidates.

What is cash in trust (CIT)?

Cash in trust is the money held in the SPAC's trust account on behalf of shareholders who retain redemption rights. It equals the original IPO proceeds plus accrued interest, minus any trust expenses and management withdrawals. CIT per share is this balance divided by the number of shares with redemption rights.

Why does CIT per share matter?

CIT per share is the floor value for redemption. If a SPAC trades below its CIT per share, buying shares and redeeming them at the trust value is a near-risk-free trade (subject to timing). This is why institutional SPAC arbitrageurs closely track this figure.

Why do some SPACs trade above CIT?

If the market believes the acquisition target is valuable, investors may bid the share price above CIT. The premium reflects the option value of the deal. If the deal is poor, shares trade at or below CIT as arbitrageurs hold for redemption.

How often do you update?

Daily, after 4 PM ET. We check for new SEC filings each evening. Between quarterly filings, trust balances are updated with accrued interest estimates based on the prevailing T-bill rate.

What is the difference between CIT (SEC) and CIT Accrued?

CIT (SEC) is the literal per-share figure from the most recent 10-Q or 10-K filing. CIT Accrued is our daily estimate — the SEC-reported trust balance updated with accrued interest since the filing date. CIT Best shows whichever is highest-confidence and most current.

What does a red "last trade date" mean?

We flag SPACs that have not traded for more than 3 calendar days. This can indicate low liquidity, a pending redemption, or that the SPAC has wound down. Exercise extra caution with stale names.

Is the data real-time?

No — it is end-of-day. Prices and volumes update once per day. SEC filing data updates when new filings are published, which for most SPACs means quarterly.

Do you cover international SPACs?

Currently we cover US-listed SPACs that file with the SEC. We do not cover SPACs listed on foreign exchanges.

Is this investment advice?

No. All data is provided for informational purposes only. PrimeRisk is not a registered investment advisor. Always verify data against primary SEC sources before making investment decisions.