{"id":1587995,"date":"2022-08-04T07:03:11","date_gmt":"2022-08-04T11:03:11","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1587995"},"modified":"2022-08-04T07:03:14","modified_gmt":"2022-08-04T11:03:14","slug":"spac-market-hits-a-wall-with-issuance-drying-up-and-valuation-bubble-bursts","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/spac-market-hits-a-wall-with-issuance-drying-up-and-valuation-bubble-bursts\/","title":{"rendered":"SPAC Market Hits a Wall, With Issuance Drying Up and Valuation Bubble Bursts"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fspac-market-hits-a-wall-with-issuance-drying-up-and-valuation-bubble-bursts%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1587995&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<div class=\"TopBanner-container\" data-top-banner-placeholder=\"true\"><\/div>\n<\/div>\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<header id=\"SpecialReportArticle-PageHeaderWithTuneInText-2\" class=\"PageHeaderWithTuneInText-container PageHeaderWithTuneInText-isSpecialReport\" data-test=\"pageHeaderWithTuneInText-0\" data-analytics=\"SpecialReportArticle-pageHeaderWithTuneInText-2-0\">\n<div class=\"PageHeaderWithTuneInText-main\"><a href=\"https:\/\/www.cnbc.com\/delivering-alpha\/\"><img decoding=\"async\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/106853213-1645023382986-delivering-alpha-v2.png?v=1645023399&#038;h=80\" class=\"PageHeaderWithTuneInText-logoImg HeaderImage-regularImage\" alt=\"Delivering Alpha\" \/><\/a><\/p>\n<\/div>\n<div class=\"PageHeaderWithTuneInText-divider\">\n<div class=\"PageHeaderWithTuneInText-tuneInText\">Visit cnbcevents.com\/delivering-alpha to register for this year&#8217;s conference on September 28, 2022.<\/div>\n<\/div>\n<nav class=\"PageHeaderWithTuneInText-subNav\">\n<\/nav>\n<\/header>\n<\/div>\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\">\n<div class=\"ArticleBody-articleBody\" id=\"SpecialReportArticle-ArticleBody-6\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"SpecialReportArticle-articleBody-6-2\">\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-107097005\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<div class=\"InlineImage-imageEmbedCaption\">Traders on the floor of the NYSE, August 1, 2022.<\/div>\n<div class=\"InlineImage-imageEmbedCredit\">Source: NYSE<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>The SPAC boom is officially a thing of the past.<\/p>\n<p>Not a single special purpose acquisition company was\u00a0issued in July as the market slowdown turned into a screeching halt, according to CNBC calculations of SPAC Research data. Sponsors who once took advantage of a hot market were forced to pause as investor interest waned and regulatory pressure ramped up.<\/p>\n<\/div>\n<div class=\"InlineImage-imageEmbed InlineImage-inlineInfographic\" id=\"ArticleBody-InlineImage-107098151\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper InlineImage-wrapperNoCaption\">\n<div class=\"InlineImage-imagePlaceholder\">\n<div><button class=\"InlineImage-closeEnlargedImage\">Arrows pointing outwards<\/button><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>SPAC investors have turned their backs on speculative high-growth equities with unproven track records after many of these firms failed to meet inflated forecasts.\u00a0Meanwhile, regulators started to look into deals that entice investors with forward-looking statements after a boom in 2020 and 2021 created more than 600 SPACs hunting for targets before time runs out.<\/p>\n<p>&#8220;I think that was a once-in-a-lifetime experience just like during the internet bubble,&#8221; said Jay Ritter, University of Florida finance professor. &#8220;A year ago, the whole market was overpaying and now we have a reset. Giving a valuation of $500 million on a zero revenue company &#8230; those days are gone.&#8221;<\/p>\n<p>A recent acquisition highlighted just how absurd SPAC valuations were during the mania. <a href=\"https:\/\/www.cnbc.com\/quotes\/NKLA\" target=\"_blank\" rel=\"noopener\">Nikola<\/a>\u00a0recently announced it will buy\u00a0Romeo Power <a href=\"https:\/\/www.cnbc.com\/2022\/08\/01\/nikola-nkla-to-acquire-romeo-power-rmo-.html\">in a $144 million all-stock transaction<\/a>. That&#8217;s just about 10% of Romeo Power&#8217;s valuation when it merged with a SPAC less than two years ago.<\/p>\n<p>Along with issuance drying up, liquidations are rising amid difficulties in finding suitable targets. Three deals were tabled last month, including Bill Ackman&#8217;s record $4 billion Pershing Square Tontine, pushing the number of liquidations this year to 10 deals. In all of 2021, only one SPAC was liquidated, according to the calculations.<\/p>\n<p>&#8220;We expect the acquisition landscape to remain\u00a0highly competitive,\u00a0and caution that many SPACs are likely to be pressured on time to find suitable targets,&#8221; Venu Krishna, deputy head of U.S. equity research at Barclays, said in a note.<\/p>\n<p><em>\u2014 CNBC&#8217;s Gina Francolla contributed reporting.<\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Visit cnbcevents.com\/delivering-alpha to register for this year&#8217;s conference on September 28, 2022.      Traders<\/p>\n","protected":false},"author":1,"featured_media":1652019,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1587995","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1587995","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1587995"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1587995\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1652019"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1587995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1587995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1587995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}