FXTM information and reviews
OctaFX information and reviews
FXCC information and reviews
Libertex information and reviews
FxPro information and reviews
HotForex information and reviews

SPAC listed therapy app for those who have hit rock bottom, hits rock bottom

21 July 2021

Niche technology has been enjoying a significant heyday over the past few months, and some of the most obscure ideas which have begun as incubator projects have come to the attention of investors, especially during the SPAC listing frenzy that has recently taken place. There has even been a bizarre pre-IPO valuation of an electric vehicle manufacturer, oddly named Canoo, which has not delivered a single product, hailing itself as a $1 billion company as it begins its zero-due-diligence blank check listing on NASDAQ.

Whilst these times are peculiar, they have spurred interest in other fringe products, and one such example is Talkspace, a 'mobile therapy' technology company listed on the NASDAQ exchange, which is headquartered in New York and was founded in 2012 by Israeli married couple Oren and Roni Frank.

The company was conceived after a transformative experience in couples therapy that saved their marriage, therefore Talkspace began as a group therapy platform, but has evolved to a company offering online psychotherapy from licensed therapists. It became publicly listed on NASDAQ, a very technology-orientated stock exchange in January this year, and began its publicly listed existence with aplomb, however it has been a downhill spiral since then.

This week, Talkspace enjoys the dubious accolade of being the bottom stock on the NASDAQ, having suddenly dipped even lower during the end of last week to an all time low since it began its decline in January.

The company went public on NASDAQ via a SPAC listing, perhaps unsurprisingly, and engaged in a $1.4 billion deal with Hudson Executive Investment Corp. providing the company with $250 million in cash to be used as growth capital back in January this year at the height of the SPAC listing trend and just before the meme stock frenzy began.

It is perhaps somewhat bizarre that firms listing on NASDAQ are able to do so with such ease, bypassing the normal and very stringent criteria for public listings on prestigious exchanges.

Talkspace doesn't exactly have a blot-free copybook. In April 2020, The New York Times published an article where they cited Talkspace employees had read transcripts from therapy sessions and that employees were instructed by the company to post fake app store reviews using burner phones, and there have been a few instances of controversy surrounding conflicting business and clinical interests, making scientific claims about its effectiveness, violating patient confidentiality, and a lawsuit against the Psychotherapy Action Network for defamation. All this within the last three years.

Either the firm will de-list, or get de-listed, leaving the Franks to keep the cash, or it will attract investors. Either way, it is one of those 'heads or tails' situations, as is now a characteristic of many of these fringe companies that have been allowed into the public trading domain via SPACs.

It could even, at a stretch, be considered a meme stock.

Risk warning: Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.5% of retail investor accounts lose money when spread betting or trading CFDs with ETX. You should consider whether you understand how spread bets or CFDs work and whether you can afford to take the high risk of losing your money.
Monecor (London) Ltd is a member firm of the London Stock Exchange. Authorised and regulated by the UK Financial Conduct Authority (FCA) with Financial Services register number 124721 and the South African Financial Sector Conduct Authority (FSCA) under license number 50246.



Fed Hawkish Policy Leads to Slip of Asian Shares
Fed Hawkish Policy Leads to Slip of Asian Shares

On Friday, Asian stocks plummeted as a new round of hawkish statements from Federal Reserve officials bolstered predictions that interest rates in the United States...

17 Jan 2022

Crude Oil is Heading Towards Highs
Crude Oil is Heading Towards Highs

On Monday, 17 January, the Brent price remains “in the black”; investors are clearly intending to update 7-year highs in the instrument. Brent is trading at $86.40...

17 Jan 2022

Equity bulls jittery, dollar sinks as investors digest inflation data
Equity bulls jittery, dollar sinks as investors digest inflation data

Most Asian shares ventured into negative territory this morning while European stocks markets have opened up marginally lower open after the December U.S...

14 Jan 2022

Stock Futures Trade higher
Stock Futures Trade higher

US stock futures are trading higher as investors continue to digest economic data. This month we have seen much weaker employment numbers and other economic...

12 Jan 2022

Fed Hawks, Markets Stumble, Mixed NFP
Fed Hawks, Markets Stumble, Mixed NFP

Investors marched into the new year with a renewed sense of confidence as concerns over the Omicron variant eased. European shares hit a record high in the first session...

10 Jan 2022

Stock Futures Plunge, BTC Price Crashes
Stock Futures Plunge, BTC Price Crashes

The cryptocurrency markets also got tangled up in yesterday’s massive slump in equity markets. Bitcoin’s price is crashing and traders are wondering how low the price will go...

7 Jan 2022

Editors' Picks

XM information and reviews
FXCM information and reviews
AvaTrade information and reviews
LegacyFX information and reviews
FP Markets information and reviews
FP Markets
FreshForex information and reviews

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.