SPAC G&P Acquisition Corp (GAPA) Delisted for “Abnormally Low” price levels
According to Investment News on Nov. 8, G&P Acquisition Corp., leisure-oriented business backed by former American Realty Capital REIT founder Nicholas Schorsch, reportedly failed to list its shares on the NY Stock exchange.
Last February, G&P Acquisition Corp. reportedly registered a $200 million securities offering with the Securities and Exchange Commission, intending to sell 20 million shares at $10 each. Schorsch, formerly of the American Realty Capital REITs, is reportedly the chairman of the G&P SPAC, which planned to invest in leisure-oriented businesses and the craft brewing automotive and distribution sectors.
According to the article, the New York Stock Exchange said it was delisting the company’s warrants, because “the company’s warrants are no longer suitable for listing based on ‘abnormally low’ price levels.”
G&P Acquisition Corp. reportedly said in a filing that it did not intend to appeal the ruling.
The company’s shares, under the ticker GAPA, are listed on the NYSE and reportedly closed at $10.06 on Monday, November 7, 2022.
SPACs (special purpose acquisition companies) are publicly traded shell companies that raise money from investors with the expectation of acquiring specific target businesses. Warrants allow investors to buy the company’s shares at a pre-set price. To learn more, see: Securities Investigation – Special Interest Acquisition Company (SPAC)
Unfortunately for SPAC investors there are big risks due to the current stock market selloff, pushing share price valuations well below the $10 per share level at which many are priced.
G & P’s purported plan was to invest in leisure-oriented businesses and the craft brewing, automotive and distribution sectors. Investors in the G&P acquisition SPAC shares also received half a warrant, exercisable at $11.50, according to the article.
Potential FINRA Lawsuits to Recover your Investment Losses
Brokerage firms have two main duties in recommending investments. First, brokerage firms are required to perform adequate due diligence on any product they recommend. Second, brokerage firms are required to ensure that all recommendations made are suitable for their client in light of the client’s age, investment experience, net worth, income, and investment objectives.
The Financial Industry Regulatory Authority (FINRA) last October launched a thorough examination of the activities of brokerage firms in relation to special purpose acquisition companies (SPACs) because of the risks of these investments and the potential for financial losses for retail investors.
Fortunately, the Financial Industry Regulatory Authority (FINRA) provides for an arbitration forum for investors to resolve disputes if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment. It is possible that they could be found liable for investment losses in a FINRA arbitration claim.
Filing a Complaint against your Brokerage firm
If you are concerned about an investment in G&P Acquisition Corp (GAPA) or another special purpose acquisitions company (SPAC), the securities attorneys at The White Law Group may be able to help you by filing a complaint against your brokerage firm. Please call the offices at 888-637-5510 for a free consultation with a securities attorney.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.
For more information on the firm, please visit https://www.whitesecuritieslaw.com.
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