Insight - Is this the SPAC era’s worst deal?

SPACs were touted as a shortcut to a stock-market listing and a way for retail investors to gain access to promising startups. But the hype and haste have often sidetracked due diligence and financial controls.

THE abysmal performance of businesses that have gone public by merging with special-purpose acquisition companies (SPACs) has emboldened the United States Securities and Exchange Commission (SEC) to beef up investor protections and disclosure requirements.

SPACs were touted as a shortcut to a stock-market listing and a way for retail investors to gain access to promising startups. But the hype and haste have often sidetracked due diligence and financial controls.