Back to News
SPACs

More SPACs Issue Going Concern Warnings

|
Published: June 13th, 2022
View, Lordstown and Shift join Canoo among companies taken public via SPAC deals that now have doubts about their future.

As the U.S. SPAC market has seen plummeting valuations, a growing number of the companies targeted by SPACs in de-SPAC transactions are now issuing going concern warnings.

Recent examples of the trend include View Inc. (VIEW), Lordstown Motors Corp. (RIDE) and Shift Technologies Inc. (SFT). These companies follow Canoo Inc. (GOEV), an electric vehicle company that completed a business combination and on May 10 warned investors of its a going concern status.

View went public in a de-SPAC with CF Finance Acquisition Corp. II, a vehicle sponsored Cantor Fitzgerald LP. The SPAC went public Aug. 27, 2020, and by Nov. 30, 2020, the $1.5 billion View deal was announced; it closed March 8, 2021.

The company makes smart glass to reduce energy consumption and carbon emissions in commercial buildings, airports, hospitals, hotels and multifamily projects. View is under Nasdaq scrutiny because of its failure to file financials on time, and the exchange has given the company until the end of May to comply with listing regulations. On May 13, View said while it’s working on raising fresh capital, it anticipated filing financials that will include a going concern warning. Its shares opened at 67 cents on May 18.

Editor’s note: The original version of this article was published earlier on The Deal’s premium subscription website. For access, log in to TheDeal.com or use the form below to request a free trial.

This Content is Only for The Deal Subscribers

The Deal provides actionable, intraday coverage of mergers, acquisitions and all other changes in corporate control to institutional investors, private equity, hedge funds and the firms that serve them.

If you’re already a subscriber, log in to view this article here.

More From SPACs

SPACs

SEC SPAC Proposals Spur Structural Change

By Bill Meagher
|
Published: June 13th, 2022
While bulge-bracket banks pull back from SPACs, second-tier banks, sponsors and law firms are adjusting to the prospect of new SEC rules.
SPACs

TradeZero's Woes Continue

By Bill Meagher
|
Published: June 9th, 2022
The broker-dealer is now the subject of an SEC complaint, adding to a lawsuit and teetering merger with a SPAC.