The proposed merger between blank-check company Churchill Capital IV and Lucid Motors is a pretty typical example of the pandemic SPACsplosion — it involves electric cars that have not yet been built, eye-popping forecasts and frothy trading, MarketWatch reports in this op/ed that takes a broader look at blank-check companies.
And while this deal is not yet even completed, Wall Street has already gotten its share at a discount and retail investors have been hit with big losses.
In April, the number of SPACs that filed to go public, or SPAC mergers that became public companies, skidded to a halt. Only 13 deals went public in April, raising $3.2 billion, according to data provider Dealogic, down from 108 SPACs in March, 97 in February, and 90 in January. Read more.
