- The SPAC boom over the past year is beginning to deflate, as scores of post-merged companies flounder below their $10 IPO price.
- Even high profile names like 23andMe, Blade Air Mobility, and MetroMile have plummeted.
- These are the 10 worst performing SPACs that completed their merger over the past year.
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The SPAC boom over the past year is beginning to deflate, as issuances slow down and investors sell-out of post-merged companies that are well below their $10 IPO price.
The Defiance Next Gen SPAK ETF is down more than 22% year-to-date, and down more than 37% from its mid-February high. High profile SPAC names like 23andME, Blade Air Mobility, and MetroMilehave plunged at least 25% from their $10 IPO Prices.
The broad decline in the stock prices of companies that went public via SPAC is partly due to poor fundamentals, with some being pre-revenue companies, and most not yet profitable. As these companies first quarterly earnings report as a public company begin to trickle in, investors are heading for the exits.
This trend could continue and ultimately spill over into SPAC listings that have not yet completed a merger, as they trade closer to the $10 IPO price.
That's because the often 2-year deadline for hundreds of SPACs to complete a deal is not far away as management teams scramble to find a deal. Those deals will likely be of sub-par quality given the many hundreds of SPACs that are desperate to get a deal done and get paid before they have to return the funds raised to investors.
These are the 10 worst performing SPACs that completed their merger over the past year.
10. UpHealth
Ticker: UPH
Market Value: $601.2 million
% Below $10 IPO Price: -42%
9. Romeo Power
Ticker: RMO
Market Value: $655.9 million
% Below $10 IPO Price: -52%
8. Metromile
Ticker: MILE
Market Value: $538 million
% Below $10 IPO Price: -56%
7. View
Ticker: VIEW
Market Value: $993.6 million
% Below $10 IPO Price: -58%
6. Play Studios
Ticker: MYPS
Market Value: $598.7 million
% Below $10 IPO Price: -58%
5. ATI Physical Therapy
Ticker: ATIP
Market Value: $869.1 million
% Below $10 IPO Price: -60%
4. CarLotz
Ticker: LOTZ
Market Value: $479.2 million
% Below $10 IPO Price: -61%
3. Gemini Therapeutics
Ticker: GMTX
Market Value: $155.4 million
% Below $10 IPO Price: -63%
2. SOC Telemed
Ticker: TLMD
Market Value: $382.2 million
% Below $10 IPO Price: -74%
1. UCommune International
Ticker: UK
Market Value: $90.8 million
% Below $10 IPO Price: -90%
