SPACs have been experiencing some serious headwinds lately, writes attorney Yelena Dunaevsky, vice president of transactional insurance for Woodruff Sawyer.
January has been a particularly difficult time for SPACs, with average redemptions at 82%. More lawsuits are being filed against SPACs and certainly more negative media and regulator attention. Many of Woodruff Sawyer’s SPAC clients are delaying their IPO and de-SPAC plans, and some are withdrawing their filings.
To discuss the current situation, Dunaevsky recently sat down with Doug Ellenoff, a founder of the top SPAC law firm, Ellenoff Grossman & Schole. Over the past two decades, Ellenoff and his team have been involved with more than 250 SPAC IPOs and 60 business combinations.
PIPE financing is becoming more difficult to obtain, he says, while the sheer number of SPACs that will need to de-SPAC will inevitably lead to more liquidations. Also, SPACs have been staring down increased regulatory scrutiny for a year now. Listen to the full interview.