The flow of SPAC news continues to feature new vehicle formations, IPOs, and some mergers — but soon, it’s also likely to include a whole lot of liquidations, Axios reports.
A number of SPACs are approaching their deadlines to either find a company to acquire, or liquidate and return investors’ money. Next month six SPACs will hit their deadlines. There are three in April, nine in May, and seven in June, per SPAC Research.
A slew of liquidations could undermine the belief that there are more than enough quality companies that should go public, as some SPAC optimists argued amid the boom.
Overall, companies that have gone public via SPACs have not performed well over the past couple of years — which was made even worse over the last few months by a broader market selloff.
Some SPACs running up against their deadlines could get their shareholders to agree to extensions to give them more time — but there may still be a stream of SPAC liquidations in the coming months. Read more.
