id	author	title	date	pages	extension	mime	words	sentence	flesch	summary	cache	txt
cblr-14254	Feng, Sabrina	The SPAC Phenomenon: A Transaction of Reinvention and the SEC's Reluctant Hand: Sabrina Feng	2025	32	.pdf	application/pdf	9812	478	47	SPAC investors are largely institutional: retail investors make up about 15% of the investor population with very little pre-merger trading volume.104 Yet, because Sponsors, directors, and redeeming shareholders generally exit immediately post-merger, these retail investors ultimately bear the majority of the losses when the post- merger company fails to meet performance expectations and stock price subsequently declines. [Vol. 2025 investment.87 Taken along with the 20% promote and standard fees that goes to compensate Sponsors and directors, public SPAC investors start 25% in the hole.88 Non-redeeming shareholders face further dilution on multiple fronts: (1) underwriter and other service fees dilute net asset values (2) redeeming shareholders who maintain and vest their warrants and (3) certain packages offered to PIPEs consisting of warrants, preferred shares, and below- market shares further dilute.89 Empirically, the mean net cash per share post-dilution ranges from a low of $4.10 to a high of $6.60,90 still significantly lower than the starting $10 share price.	cache/cblr-14254.pdf	txt/cblr-14254.txt