According to SPAC Research/SPAC Alpha, from January to July, the average monthly SPAC redemption rate ranged from 7%-43%. Despite this, SPACs can attempt to guard against the possibility of high redemption rates in several ways. In December 2021 alone, several SPACs faced high (and sometimes unexpected) redemption rates which were mitigated by alternative methods of financing. Before the transaction closed on Dec. 4, 2021, 94.4% of the SPAC's shares were redeemed, an unexpectedly high percentage. If the trend of high shareholder redemption continues into 2022, SPACs will likely have to continue relying on alternative methods of financing as a safety net for their business combinations.

Source: Wall Street Journal January 15, 2022 03:11 UTC