Deals
SPAC Fire Sales Stick Investors With Deeply Discounted Buyouts
- Unfulfilled promises push some shares to penny-stock levels
- Public share owners are left holding almost-empty bag
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Investors who piled into SPACs at the height of the industry’s mania with dreams of triple-digit returns are facing a harsh reality: They may get bought out for little more than pennies on the dollar.
Insurer MetroMile Inc. is trading around $1 a share after accepting an all-stock buyout offer, and Talkspace Inc., hovering near $1.70, has reportedly drawn interest for a merger of its own. That’s nowhere near the $10 mark where special-purpose acquisition companies typically debut.