Where are a SPAC's escrowed funds held, and when can they be withdrawn?

Under the Regulations on Financial Investment Business, a SPAC must deposit or place in trust an amount equal to at least 90% of the issue amount of the shares issued from its initial offering onward with a securities finance company or a trust company, excluding institutions that are pre-offering shareholders or their specially related persons.

Before the merger is registered, these funds cannot be withdrawn or pledged as collateral, and they may be withdrawn only to pay the purchase price for appraisal right demands by shareholders opposing the merger, or to make payments to public shareholders when a ground for dissolution arises. Grounds for dissolution include failing to list by the deadline, failing to complete merger registration by the deadline, and delisting (except where another corporation is listed as a result of the merger).