SPACInsider Logo
VY Global Growth (VYGG) to Liquidate Trust
VY Global Growth (VYGG) to Liquidate Trust
by Marlena Haddad on 2022-09-26 at 5:10pm

VY Global Growth (NYSE:VYGG) announced in an 8-K this afternoon that it intends to liquidate its trust after being unable to identify and combine with a target that meets its investment criteria.

The SPAC will cease all operations and redeem all of its outstanding shares for $10.06, effective as of October 6. VYGG’s trust account holds approximately $578,512,536.17, which includes approximately $3,512,536.17 in interest and dividend income (excess of cash over $575,000,000, the funds deposited into the trust). In accordance with the terms of the agreement, VY Global Growth expects to retain $100,000 of the interest and dividend income from the trust to pay dissolution expenses.

In a letter to shareholders, VYGG noted how current market conditions and the recent SEC proposal have created a challenging environment for SPAC transactions. Chairman Alexander Tamas and CEO John Hering wrote:

“As market conditions began to shift in mid 2021 and especially into 2022, the market conditions for SPACs as a path for high quality growth companies to enter the public markets became very challenging. Heightened oversight of SPACs by the SEC has impacted the deSPACing process, further affecting investor appetite for deSPACs.”

Tamas and Hering also made a point that traditional IPOs, not just SPACs, have been struggling in this market. “Since VYGG launched, the SPAC index (Defiance Next Gen SPAC ETF) lost over 44% of its value, tech SPACs lost even more of their value (down 56%) and over 80% of traditional technology IPOs since October 2020 are trading below issuance price,” they said in the shareholder letter.

VYGG marks the 29th SPAC liquidation in 2022 thus far. The SPAC went public in October 2020, raising $575 million, in an attempt to combine with a private technology company.


Recent Posts
by Marlena Haddad on 2022-11-28 at 12:02am

  Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.  Latest SPAC News:  Virgin Galactic appoints new top lawyer, Trump Media SPAC rises after investors approve merger deadline extension, and Al Maadeed to be first Qatari to list company on NYSE Virgin Galactic, Preparing for Liftoff,...

by Nicholas Alan Clayton on 2022-11-25 at 2:31pm

PMV Consumer (OTC PINK:PMVC) announced that it is redeeming all non-insider public shares for approximately $10.09 per share, but it will not be dissolving just yet. The SPAC is set to provide written redemption notices to each shareholder and trust proceeds are to be distributed within 30 days of these notices. PMV Consumer will then...

by Marlena Haddad on 2022-11-25 at 11:02am

  Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.  Latest SPAC News: Ex-Marvel chief takes the wheel at Arrival, Paysafe plans reverse stock split, and Dave Inc. to pursue a bank charter Founder of troubled electric van maker Arrival steps aside as CEO The founder...

by Nicholas Alan Clayton on 2022-11-25 at 7:31am

Digital World (NASDAQ:DWAC) announced late Wednesday that its shareholders have approved amending its charter to allow for automatic three-month extensions of its transaction deadline until September 8, 2023. This brings to close a long drama during which Digital World adjourned the vote without concluding business six times at different meetings in September, October and November....

by Marlena Haddad on 2022-11-23 at 4:49pm

Venus Acquisition Corp. (NASDAQ:VENA) announced this afternoon that it has secured an investor for a backstop agreement in connection to its business combination with VIYI Algorithm. Venus and its sponsor, Yolanda Management Corporation, entered into a backstop agreement with Joyous JD Limited to purchase VENA shares from third parties through a broker in the open market, or...

Privacy Policy|Terms Of Use
Copyright © 2022 SPACInsider, Inc. All Rights Reserved