For better or worse, space mania is now synonymous with SPAC-mania, The Wall Street Journal reports.
On Monday, space-tourism venture Virgin Galactic reported first-quarter earnings six days after it originally intended, following the SEC’s statement that some SPACs have improperly accounted for warrants. Redoing the numbers resulted in an extra $49 million expense, which made Virgin’s losses look steeper.
This is mostly a cosmetic problem, since it doesn’t involve a drain of cash. Still, investors enamored with the final frontier should be worried about regulators’ eagerness to cool the SPAC market. Dealogic data show new issues slowing to a trickle, though this could be in part due to broader financial trends, or a hangover from the record $103 billion already raised this year. Read more.
