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Redemptions Soar as SPAC Values Drop Below $10 a Share: Chart

Aug. 16, 2021, 3:14 PM

The wave of enthusiasm for special purpose acquisition companies is evaporating amid heightened regulatory attention and some high-profile flops, with redemption rates climbing as many SPACs trade under the value of their cash holdings -- typically $10 a share. According to Bloomberg analysis of Spacresearch.com data, the median redemption rate for North American SPAC deals completed in July was almost 50%. Redemptions deprive the target of cash to help fund development and expansion plans, and if the current trend continues, it may also undermine the notion that SPACs are a more predictable way of going public than a traditional ...

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