Data compiled by Bloomberg shows that 70 SPACs are potentially looking at liquidation if they are unable to acquire target companies within the next 30 days.
These SPACs collectively have over $18B in cash. Some are expected to close operations and return funds to investors, while several are seeking extensions. Many sponsors are ready to pay additional fees to extend the SPACs' deadlines.
Sponsors of GigCapital5, which is close to completing its merger deal with QT Imaging, are ready to pay investors $125,000 a month for a six-month extension.
- So far this year, 30 sponsors have closed operations, and 86 have sought extensions, per Boardroom Alpha.
- SPAC listings' popularity waned in recent times following strict regulatory scrutiny measures imposed by the SEC.
- Meanwhile, several companies that went public via SPAC mergers are on the brink of going bankrupt or getting acquired at rock-bottom prices.
