The SPAC boom took hundreds of risky companies to the stock market. The next stop for many is bankruptcy court, The Wall Street Journal reports.
Dozens of companies that merged with SPACs are running out of cash, joining at least 12 that have already gone bankrupt after combining with special-purpose acquisition companies.
More than 100 companies, including electric-scooter firm Bird Global Inc., smart-sock baby-monitor maker Owlet Inc. and electric-car startup Faraday Future Intelligent Electric Inc. are running out of cash, according to a Wall Street Journal analysis of the companies’ cash and cash flow from operations data disclosed in regulatory filings.
Shares of many of these companies trade under $1, more than 90% below where they did when they went public, and are in danger of being delisted. Read more.
