3 ms·
Seems to me the real issue here is only 6% of the money pledged to the SPAC stuck around. Presumably the market wasn’t keen on the listing or the valuation. Or
by CPLX 5y ago
Seems to me the real issue here is only 6% of the money pledged to the SPAC stuck around. Presumably the market wasn’t keen on the listing or the valuation.
Or am I misunderstanding how SPAC’s work? My understanding is people commit hoping the deal turns out good and can walk if they don’t like the deal. Presumably they don’t like the deal.
- lilyball 5y agoFrom reading Matt Levine's Money Stuff column, my impression is that SPACs used to retain most of their value, but more recently it's very common for most SPAC holders to walk. The SPAC is still useful because the merger typically comes with a PIPE (Private Investment in Public Equity) deal.