SPAC redemption rates have been around 50 percent this year, up from 20 percent last year, according to Dealogic, reports The New York Times’ Deal Book. Companies that relied on this cash have responded to redemptions by adding debt financing to deals (BuzzFeed has a $150 million convertible note to fall back on following merger approval) and by rewriting the terms of mergers. Read more.
Related Posts
The SPAC Bubble May Burst: WSJ
Over an 18-month period the WSJ found that SPACs completing a deal lost 12 percent of their value, on average, within six months of the merger.
SPAC Deals Attract Younger, Less-Funded Digital Health Startups: Report
SPACs tend to prefer high growth sectors, and there aren’t many areas with as much recent expansion as in digital health, Mobi Health News reports.
Short-Seller Reports in SPAC Litigation: Credible Evidence or Fabricated Self-Interest?
While some investors will fly under the radar and try to quietly hold these “bet to fail” positions, others actively seek to talk down the price of the securities that they are shorting by publicizing research reports.
First SPAC set up Under New UK Rules to Close After Failing to Find Merger Target
Hambro Perks Acquisition said in a statement that it had ceased all operations except for the purposes of winding up the company and returning money to shareholders.