, Columnist
Oops, I Accidentally Created a Mini SPAC Meme Stock
Bizarrely, retail investors are piling into cash-starved former SPACs. Executives must be delighted but it won’t end well for those holding the bag.
Have I got a trade for you.
Source: Bloomberg
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Earlier this week I wrote about a seafloor mining company, TMC The Metals Company Inc., that was denied almost $500 million in promised funding when investors chose not to back its merger with a special purpose acquisition company.
The cash struggles signaled that the still revenue-less firm hasn’t convinced investors its more than $2 billion valuation is justified, I explained. Yet within hours, its stock soared 63%, making me look rather foolish.