Wednesday, June 16, 2021

Lordstown, DraftKings fit pattern among `De-SPAC' stocks

Lordstown Motors Corp. and DraftKings Inc. have a couple of things in common. Both businesses were taken public by special purpose acquisition companies, or SPACs, and both suffered stock-market setbacks this week. The latter reflects a trend that’s evident from the De-SPAC Index, consisting of companies whose deals were completed during the past 12 months. The index fell 27% through Tuesday from a high in February, according to data compiled by Bloomberg. Blank-check companies that have yet to make or complete deals held up better, as the IPOX SPAC Index dropped 23% from its February peak.

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