Outcomes
Combination deadline
The date in the charter by which a combination must close, or the trust is returned.
Also written: deadline, business combination deadline, the clock
Charters set an outside date, commonly 18 or 24 months from the IPO. Some allow the sponsor to extend unilaterally by depositing money into the trust; others require a shareholder vote.
The date moves whenever an extension is approved, so the deadline on any given day reflects the most recent charter amendment rather than the original prospectus.
Why it matters
As the deadline nears, the sponsor's asymmetric incentive to get any deal done starts to dominate. Deals signed inside the last few months deserve more scrutiny, not less.
Related terms
Extension
A shareholder-approved amendment giving the sponsor more time to close, almost always with a redemption window attached.
Liquidation
Returning the trust to public shareholders when no combination closes in time.
Redemption
A public shareholder's right to hand back shares for their pro-rata share of the trust, exercisable at a vote.
See the term in the wild: the screener shows trust size, per-share value and deadlines for every U.S. SPAC, and each profile links to the filings the numbers came from.
Definitions describe market practice and are not investment, legal or tax advice.