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In Canada, the SPAC market has seen 28 IPOs, with none trading above their initial prices. Companies such as Lion Electric and Li-Cycle have filed for bankruptcy, resulting in significant losses for investors and government funding.

Lion Electric, once valued at over $4 billion, faced manufacturing issues and delivery delays after going public via a SPAC. Li-Cycle, a lithium-ion battery recycler, also experienced a decline, culminating in a bankruptcy filing in 2025.

Experts criticize the misaligned incentives within the SPAC structure and the impact of unsophisticated investor participation. Despite some success stories like Sagicor Financial, many SPAC-backed firms are struggling, raising concerns about the investment vehicle's future.