MNTS - A SPAC Winter

• The number of SPACs has soared in 2020 and 2021 as investor demand soared, and deal volumes surged much higher.
• Average deal size is rising, and some companies have completed or agreed to mergers at valuations above $10 billion.
• SPACs provide some key advantages to companies compared to IPOs, but investors can be caught with dilution, a lack of diligence, and a lack of visibility.
• EVs had been the favorite sector for SPACs, and one of the sectors that revealed the extreme optimism for SPACs in the market.
• Demand for SPACs is starting to cool, and returns are fading pre-deal, and a large number of post-deal companies have seen major share price declines.

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