After being the darling of Wall Street since mid-2020, PSPCs are in decline. Since the start of the year, more than 330 of these empty shells have gone public, with the sole objective of attracting capital to buy a business. The first part of the equation has not been a problem, with more than $ 101 billion raised since January – more than in all of 2020. But finding a suitable target has become increasingly difficult, in a world. backdrop of fierce competition to get their hands on the most promising companies. The PSPC phenomenon thus began to run out of steam in February, and new regulations will further dampen the enthusiasm of their promoters.
In a note published on April 12, the US market authority – the SEC – did not warn of the dangers of these structures and did not raise the risk of a ban. It was only a matter of accounting, more specifically of how the options given to PSPC facilitators should be recorded. In some cases, the SEC writes, these options should appear as debt in PSPC’s books, and not as capital, as is the practice.