More Than 25% of the Companies That Merged With SPACs During the Boom Are Penny Stocks Now
Author Eliot Brown
Publisher The Wall Street Journal
Date Published 04.21.2023

Buzzfeed isn’t the only company that merged with a SPAC that’s hurting.

Of the 365 companies that listed publicly through a SPAC merger between 2020 and 2022, 100—or 27%—were penny stocks trading below $1 as of Thursday’s close, according to data firm SPAC Research.

Among the companies now in the cents-per-share club: WeWork, scooter rental company Bird, and aspiring electric vehicle makers including Nikola, Lordstown Motors, and Faraday Future.