It may not all be doom & gloom in the domain of blank-check companies
Investors were spooked last month by new guidance from the SEC indicating that it may re-classify SPAC warrants as liabilities, which would force existing and prospective SPACs to recalculate significant portions of their financial statements, CNBC reports. However, with SPACs raising more money in the first three months of 2021 than they did throughout all of last year, some of the recent disinterest may be “misplaced,” Morgan Creek Capital Management’s Mark Yusko told CNBC.
“This is a long-term trend,” Yusko, the firm’s founder, CEO and chief investment officer, said on CNBC’s ETF Edge. “The SPAC merger, we believe, will become the preferred method for high-growth, innovative companies, or what we call the companies of the future, to go public.”
After a “frenetic” first quarter for new issuances and the SEC crackdown, “it’s normal and natural to have a little lull,” he said. Read more.
