wsj.com/amp/articles/spacs-are-warning-they-may-go-bust-11653601111
At least 25 companies that merged with special-purpose acquisition companies have issued so-called going-concern warnings in recent months. The SPAC boom brought a wave of companies to the public markets promising years of rapid growth and profits to investors. Two years since the boom began, many of these companies are already warning they may go bust.

At least 25 companies that merged with special-purpose acquisition companies have issued so-called going-concern warnings. Among those are a company planning to build an air-taxi network, numerous upstart electric-vehicle companies and a scooter-rental business. The warnings amount to more than 10% of the 232 companies that listed through SPACs in that period.

The number of going-concern notices is roughly double that for companies that listed through more-traditional initial public offerings, Audit Analytics said. The count excludes hundreds of IPOs by blank-check companies, SPACs before they merge with a private company. Many companies, particularly startups with little revenue, quickly found that their projections were harder to attain than they said.

SPACs are blank check companies with no operations that let private companies list on public markets by merging with them. One attraction was that SPACs have looser regulations than IPOs, allowing startups to entice investors with projections of revenue and profits. Large portions of young companies in the sector have missed their forecasts.
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