What is rights in a SPAC?

A sweetener converting into a fraction of a share automatically at closing, common on smaller offerings. Rights typically convert into a tenth or a twentieth of a share when a combination completes, with no payment from the holder.

Securities

Rights

A sweetener converting into a fraction of a share automatically at closing, common on smaller offerings.

Also written: spac rights

Rights typically convert into a tenth or a twentieth of a share when a combination completes, with no payment from the holder.

Unlike warrants they require no exercise decision, but like warrants they are worthless in a liquidation.

Related terms

Unit
What a SPAC actually sells in its IPO: one share bundled with a fraction of a warrant, and sometimes a right.
Warrant
A right to buy a share at a fixed price, usually $11.50, exercisable only after a combination closes.

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.