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SPAC Liquidations Are on the Rise as Time Runs Out to Find Deals

Michelle Celarier
September 27, 2022

The troubled SPAC market isn’t getting any better. So far this year, 21 Special Purpose Acquisition Companies worth $9.9 billion have been liquidated, according to SPAC Research’s weekly monitor. More than half of these liquidations — eleven — have occurred since August.

But these statistics actually understate the problem. For example, they don’t capture announced liquidations, like those of Chamath Palihapitiya. Last week Palihapitiya, whom Bloomberg once crowned the “King of SPACs,” disclosed in a regulatory filing that he would liquidate two that had failed to find a merger partner and would return $1.6 billion to investors next month. The two-year time period for the two SPACS to find a partner ends in early October.

In August, even though a SPAC Palihapitiya sponsored with hedge fund Suvretta Capital managed to complete a deal with Akili Interactive, 99 percent of the original investors redeemed when the deal closed. The stock now trades below $2.50 per share, down from a high of $14 right before the deal.
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https://www.institutionalinvestor.com/article/b1zzdfjw1p8nvf/SPAC-Liquidations-Are-on-the-Rise-as-Time-Runs-Out-to-Find-Deals