German electric air taxi developer Volocopter has cancelled its planned SPAC IPO in the US, according to German Business Magazine Capital (Article in German) . This apparently emerges from investor letters that investors are said to have received a few days ago. With the cancellation of the deal, the approximately 750 small investors could end up empty handed.
The crowd investors are very unhappy, as the magazine Capital writes. Those crowd investors had once financed the start of the project. With the SPAC merger, which has been speculated about since the summer, the early investors hoped to be able to multiply their initial investment.
The reason given in the letter quoted by “Capital” is the market environment and the results of the IPOs of some competitors – where investors were only cautious. “The facts and figures, unfortunately, make it more than clear in recent weeks and months that the current time is conceivably unfavourable for a successful SPAC transaction,” the investor letter says.
One of the competitors is Lilium, which raised significantly less than hoped for in its IPO in September.