Blank Check Stock Offerings

By Glen T. Oxton and Antonios C. Backos, Healy & Baillie, LLP

Blank check offerings of securities in the U.S. public capital markets have been around for some time, but in the past such offerings were primarily associated with small offerings of $5 million or less. Today they are being used in much more sophisticated offerings for hundreds of millions of dollars in many diverse industries – in addition to shipping – such as metals, mining, media and entertainment.

Last December, International Shipping Enterprises, Inc. (“ISE”) concluded an initial public offering of securities in the United States as a blank check company. The deal created great interest in the shipping community because of its size. It successfully raised approximately $182 million after expenses, of which JPMorgan Chase Bank currently holds approximately $180 million in a trust account awaiting the completion of a business combination.

What Is a Blank Check Offering?

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