Mountain Crest Acquisition III (MCAE) filed an amendment on Monday disclosing that the SPAC's proposed merger with Beijing-based healthcare services provider Etao International would now value the company at $1.0 billion, down 60% from the original valuation of $2.5 billion it struck in January. In addition, the outside date for the closing of the business combination has been extended from May 31, 2022 to October 5, 2022. The company's roadshow slides have not yet been updated for the new terms.
While traditional IPOs propose a price range and then adjust the final offer price to reflect changing market conditions and demand, SPACs have historically kept the valuation unchanged in the months between deal announcement and closing.
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