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I know zip about SPACs. They just look dangerous from the outside looking in. I get the money can be flowing. I wonder if this is like the IPO market drying up when there is a down turn? I do not know. But am equating it to the BuzzFeed result here.

NYT Snippet:

BuzzFeed is off to a rocky start on the road to becoming a public company. Shareholders yesterday voted on its deal with a special purpose acquisition company, or SPAC, as BuzzFeed News union employees staged a daylong strike over contract negotiations. The merger was approved, but the company said it raised only $16 million from the deal, far less than the over $250 million it had hoped for.

SPACs have a money-back guarantee: Because investors do not know what company a SPAC plans to acquire, they have the opportunity to redeem their shares at the I.P.O. price before a merger is official. When a SPAC’s shares trade below this price, as has been the case with BuzzFeed’s merger partner, these redemptions can be significant, leaving a company with less money than expected when it agreed to a deal. This highlights a major challenge for companies engaging in SPAC deals, making this popular route to market less attractive.
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