SPACs are structured such that sponsors are incentivized to get a deal done quickly, even if the company they’re buying may not be ready for public market scrutiny. Both companies have been unable to live up to their rosy projections and, like Lordstown, attracted S.E.C. “You can get to the public markets sooner — but that means you have to grow up in front of the public.”The S.E.C. didn’t question those orders in an inquiry into Lordstown’s disclosures at the time of its SPAC deal. “There are a lot of gray areas with the way I.P.O.s and public companies report orders,” Jay Ritter of the University of Florida, an I.P.O.

Source: International New York Times June 15, 2021 11:03 UTC