MSP Recovery's merger was worth more than $30 billion when announced last July.
MSP Recovery, a Coral Gables, Fla.-based provider of Medicare and Medicaid payment recovery services, began trading Tuesday on the Nasdaq after completing its merger with a SPAC called Lionheart Acquisition Corp. II. Then those shares promptly lost over half their value.This was the second-largest SPAC deal in history, just behind Grab, worth $32.6 billion upon announcement in July 2021.MSP Recovery shares plunged more than 60% within their first hour of trading, closing down 53.06% at $5.
Lionheart's earlier SPAC bought fast food chain BurgerFi, whose shares have lost more than 80% since going public."With the SPAC boom veering toward a bust as risk appetite wanes, the merger could end up being one of the last outrageous deals to reach the market. It stands out for its transactions between stakeholders, huge fees and lack of capital raised."