In Nasdaq Trade Talks Video, Paul Tropp Addresses State of SPAC Market
Capital markets partner and co-chair Paul Tropp (New York) discussed the state of the SPAC market in a Nasdaq Trade Talks video interview.
Paul explains that the SPAC markets have cooled down recently as a consequence of investor fatigue from massive volumes in Q1 and as a result of guidance issued by the U.S. Securities & Exchange Commission on the accounting treatment of warrants.
Paul notes a ripple effect of the SEC guidance delaying transactions as attorneys work with accountants to potentially restate SPAC financials.
He noted in terms of future opportunities that Ropes & Gray has a large pipeline that includes new and returning sponsors for SPAC IPOs and a number of SPAC and target representations on deSPAC transactions.