Once, hurrying to join the stock market by merging with a listed special purpose acquisition company seemed like a good way to raise heaps of cash and for insiders to get rich. But SPACs have become a poisoned chalice, above all for the retail investors who went along for the ride.
Ex-SPACs still standing are having to adopt a variety of ugly financial contortions to keep the lights on, including merging with a special purpose acquisition company for a second time.
For those unable to quickly become profitable or find a buyer, the path to salvation is narrow; external funding is often only available on very onerous terms, if at all.
Source: Ex-SPACs Face Hellish Battle to Avoid the Abyss – Bloomberg