Do-Nothing SPACs Sag, Offering Investors a $1.1 Billion Return
- Hundreds fall below $10 as investors get impatient for results
- They’re selling for less than cash raised in initial offerings
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What would you do if someone offered to let you buy dollars for 99 cents and walk away with a billion-dollar profit?
That’s the opportunity, at least in theory, presented by underwater SPACs. Some 300 special purpose acquisition companies debuted in the first quarter of this year, creating an oversupply with at least 302 that hadn’t bought anything yet and were trading for less than the cash raised in their public offering. They’re also facing an eventual deadline to liquidate if they don’t come up with a deal.