The Lack of SPAC

Consider the following our submission for the latest buzzword: SPAC Lack. We didn’t come up with Crypto-winter, the Great Resignation, or the She-cession, but we’re making this contribution, to sum up the months-long tailspin from SPAC frenzy to dismal returns and abandoned deals.

As evidenced in previous Daily Stacks and elsewhere on the Internet, SPACs have fallen out of favor due to poor returns and rumors of more substantial regulation coming. Those rumors are coming to fruition as the SEC voted to change how SPACs are treated, essentially creating more oversight into the popular mechanism for going public. Experts on the subject aren’t so sure the new regulations will protect investors or their money, stressing proper due diligence in place of historical financials.

SPAC mergers are still happening, though, as numerous acquisition companies approach their two-year deadlines. Recent deals include the opiate-free pain management company Scilex, video and cybersecurity analytics company Gorilla Technology, and solar company SolarMax.

For more on this topic, check out our previous Daily Stacks: International SPACs, What the Data Say About SPACs, SPACs as Bond Alternatives, and more.