The SPAC boom brought a wave of companies to the public markets promising years of rapid growth and profits to investors. Two years since the boom began, many of these companies are already warning they may go bust, The Wall Street Journal reports.
At least 25 companies that merged with SPACs between 2020 and 2021 have issued so-called going-concern warnings in recent months, according to research firm Audit Analytics.
The companies with warnings amount to more than 10% of the 232 companies that listed through SPACs in that period, Audit Analytics said. That percentage is roughly double that for companies that listed through traditional initial public offerings, Audit Analytics said. The count excludes hundreds of IPOs by SPACs, which often carry going-concern notices of their own. Read more.
