(Bloomberg) -- A blank-check firm whose board counted rock star Sammy Hagar and Hall of Fame quarterback Roger Staubach among its directors is the latest to cancel its debut as investors flee the sector.
Special-purpose acquisition company Victory Acquisition Corp. won't proceed with efforts to raise $250 million, regulatory filings show. The shelved SPAC had James Lites, the chairman of the National Hockey League's Dallas Stars, as chief executive. It's the 22nd blank-check firm to abort its public offering this month.
Investors have soured on SPACs as they confront a disrupted economy, plunging stock prices and a U.S. regulatory crackdown on the industry. A benchmark index for SPACs that completed mergers is down more than 70% since peaking in February 2021. Any new entrants would be competing with more than 600 SPACs already launched and hunting for targets.
Read more: Palihapitiya's Ex-SPACs Tumble in April, Leading Industry Plunge
SPACs are called blank checks because they raise cash from investors through a public offering with the goal of buying a private business that's chosen later on. Just 61 SPACs have gone public this year, down from more than 850 in the two years prior.
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