SPAC deals turned out to be the kiss of death for companies

The SPAC boom we saw a few years ago brought hundreds of risky, unprofitable companies to the stock market. These companies are now running out of cash and going bankrupt. Firms that used to be worth billions are now trading for less than $1 on the stock market and down more than 90% of when they were listed.
SPAC deals were supposed to be a big boost for companies by giving them cash and a stock market listing. However, it actually put pressure on them to deliver profits, as well as vulnerable to interest rate hikes and the whims of the public market.
We are at a tipping point where these companies will likely show declining cash and little chance of becoming profitable. There were 342 SPAC deals between 2016 and 2022. Over 100 companies could run out of cash within a year based on their financials. On average, they only have about five months worth of cash. Less than 100 of these 342 companies actually have positive cash flows. These companies will only be able to raise cash by giving up control, raising expensive debt, or pledging more assets.
Works Cited:
https://www.wsj.com/articles/spacs-delivered-easy-money-but-now-companies-are-running-out-f086c255?mod=Searchresults_pos1&page=1