In general, when a SPAC can't meet its financing obligations, it will dissolve automatically, and its assets get sold off and distributed to investors and creditors, in the usual course. The officers and directors of the SPAC then get sued by shareholders of the SPAC.

Creditors of a target company usually want a SPAC to go through, and this they have incentive to reach terms with the SPAC, that are contingent on the SPAC completing, at which time the SPAC closes it's deals with the target companies, and they are merged or acquired into the final, public or private corporation, or combination thereof.

If the SPAC fails, the deals don't close, and the target companies continue operating as they normally would.

Here, the SPAC is upside down. Federal law is pretty nuanced and I don't know hardly anything about these particular companies, so I can't say whether the SPAC will terminate now, or if it might be allowed to try and raise more money, or even restructure its own debts.

If it does fail, Theraplant will just continue running without merging. That could be a problem if its potential sale to the SPAC was the thing keeping it afloat. The SPAC could be lending money to distressed target companies to keep them operating before the SPAC closes.

In the case of a grow house here in CT that's ready to open, I can't imagine a scenario where it doesn't open due to a lack of money. If the SPAC fails, and if Theraplant was out of money, it would just find another buyer, instead of the SPAC.