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.