https://wccftech.com/fisker-is-about-to-formalize-its-merger-agreement-with-spartan-energy-acquisition-even-as-the-decline-in-the-spacs-shares-increases-the-risk-of-the-deal-unraveling/

Fisker, the company championing sustainable EVs, is about to achieve a major milestone as it gears up to formalize its merger agreement with the Special Purpose Acquisition Company (SPAC), Spartan Energy Acquisition Corp. (NYSE:SPAQ), allowing the shares of the combined company to list on the New York Stock Exchange. However, the relentless decline in the SPAC’s share price may jeopardize the entire deal.

Bear in mind that a SPAC gives its shareholders the opportunity to redeem their shares for cash up until the proposed business combination achieves closure (often extending a few days beyond that threshold). If, however, the share price falls below a SPAC’s Net Asset Value (NAV), most shareholders would naturally elect to redeem their shares in order to recoup their original investment at a minimal loss. If a large number of investors opt to do so, the entire deal may be jeopardized. This, obviously, poses grave ramifications for the merger deal between Fisker and Spartan Energy Acquisition.