Four SPAC Mergers Canceled in Days, New Signs of Market Collapse - Bloomberg

A spate of merger deals for special purpose acquisition companies (SPACs) has been scrapped, another sign that the SPAC market is collapsing.

At least four proposed mergers between SPAC companies and companies looking to go public have been scrapped since the stock market closed on Tuesday. There have been 42 such cancellations this year. Many market players believe the SPAC market is bankrupt, and the series of contract cancellations has dealt a further blow to the market. Some investors are still holding write-downs.

The aborted transactions were valued at about $4.3 billion (about ¥572.8 billion), and included Bitcoin mining company Prime Blockchain and space-related company D-Orbit. Some industry insiders say the volatile investment environment and the excessive number of SPAC sponsors are leading to more failures.

“Market conditions have made it difficult to complete a merger through a SPAC. “There are now countless sponsors eyeing a number of SPAC deals that are likely to fail,” he said.