Editor’s note: This story has been edited to clarify that only one of the SPACS is involved with Lordstown Motors. The senators are taking a broader look at SPACS and their operations in general. We regret the error.
LORDSTOWN, Ohio (WKBN) – Senator Sherrod Brown wants the Special Purpose Acquisition Companies, known as SPACs, including one behind Lordstown Motors, to know they’re keeping an eye on them.
Brown and five of his colleagues recently sent letters to the six SPAC creators, including the CEO and Chairman of DiamondHead Holdings Corp. who helped create the SPAC involved in acquiring Lordstown Motors.
SPACs are publicly traded companies that raise money to purchase private companies and take them public.
The senators want to know more about how SPACs are used so they can make sure these companies are following the rules.
“I don’t want them to come to the Mahoning Valley, invest, pull out and never be heard from again, so we are watching them. We want to make sure that Lordstown Motors and the Mahoning Valley are treated the way they should be,” Brown said.
The senators have asked for the SPACs to answer their questions by October 8.