Supposedly it’s about giving founders certainty, but if the investors in the SPAC want to take the founder’s company public then they must think the price they’re giving them is under market.
Best interpretation of this is founders not wanting to deal with the hassle of an IPO (or preferably DPO) and are willing to take that lower price to avoid the logistics (which doesn’t inspire much confidence in the founders for me).
I suspect a lot these are just about grifting money from the public while passing off a dying company. Cashing out quickly for SPAC investors and founders.
Nikola in particular is basically fraud and going to zero, just hard to know when. I think it’s too difficult to make money with a short position, this biases the market to support this kind of failed company longer than it should.