Struggling spacs that are facing a broad investor desertion are moving their listings to smaller exchanges in an attempt to keep alive their hopes for eventually cutting a deal, bloomberg reports.
At least seven SPACs have down-shifted to stock exchanges with more lax requirements this year after the vast majority of investors pulled out their money. That means blank-check firms with less than a minimum number of publicly held shares or a smaller investor base can survive.
The shift delays the possibility that SPAC sponsors will lose millions if they are forced to throw in the towel, while leaving in place the potential for big profits if a deal can be arranged in the future. High redemption rates and a choppy macroeconomic environment have forced 146 SPACs to liquidate in the past five months alone. That has made the search for a new strategy all the more intense, says Matthew Tuttle, chief executive officer at Tuttle Capital Management. Read more.
Source: SPACs Shift to More Obscure Exchanges to Keep Deal Dreams Going