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Isn't the bigger risk that the SPAC closes at an insanely inflated price and the investors get stuck holding the bag?
by maxfurman 4y ago
Isn't the bigger risk that the SPAC closes at an insanely inflated price and the investors get stuck holding the bag?
- MichaelBurge 4y agoNo, because the investors can individually choose to decline the deal and get their money back with interest. Any investors remaining after the deal closes implicitly agreed to the closing price. I don't think there were any cases of a SPAC not returning deposit money if someone asked, and the institutional investors generally preferred the "guaranteed return" over gambling so the redemption percentage was quite high(I think 50%+).
- MangoCoffee 4y agoSPAC investors can back out for example: Buzzfeed https://nypost.com/2021/12/02/buzzfeed-investors-pull-funds-as-company-plans-to-go-public-via-spac/ https://nypost.com/2021/12/02/buzzfeed-investors-pull-funds-...