On April 12, 2021, the Acting Director of the SEC’s Division of Corporation Finance, John Coates, and Acting Chief Accountant of the SEC, Paul Munter, released a statement on accounting and reporting considerations for warrants issued by SPACs.
#TradeTalks: How is the industry is reacting to recent SEC accounting guidance related to SPACs?
Ellenoff Grossman & Schole Managing Partner Douglas Ellenoff; Nasdaq Global Head of SPAC Listings Eklavya Saraf join Jill Malandrino on #TradeTalks to discuss recent SEC accounting guidance related to SPACs and how the industry is reacting.
Kennedy introduces SPAC Act to increase transparency surrounding blank-check companies
Sen. John Kennedy (R-La.) today introduced the Sponsor Promote and Compensation (SPAC) Act, which would provide greater transparency for investors involved with Special Purpose Acquisition Companies (SPACs), also known as blank-check companies.
QuantumScape Announces Response to SEC Guidance Applicable to Warrants Issued by Special Purpose Acquisition Companies (“SPACs”)
QuantumScape is announcing that as a result of recent guidance provided by the SEC on April 12, 2021 regarding the accounting and reporting of warrants issued by SPACs, it will restate its consolidated financial statements as of and for the year ended December 31, 2020 to change the accounting treatment of its public and private placement warrants.
D&O underwriters approaching SPACs cautiously
The explosive growth in special purpose acquisition companies, or SPACs, presents opportunities for the directors and officers liability insurance market, but insurers are approaching the issue cautiously.
U.S. Bank Offers Custom, Turn-Key SPAC Solutions
U.S. Bank is rolling out new solutions for special purpose acquisition companies (SPACs), including segregated trust accounts for SPAC proceeds, statements and secure reporting of activity, and more, according to a press release.
Exclusive: U.S. watchdog mulls guidance to curb SPAC projections, liability shield – sources
The U.S. securities regulator is considering new guidance to rein in growth projections made by listed blank-check companies, and clarify when they qualify for certain legal protections, according to three people with knowledge of the discussions.
SPAC FAQs: SEC Staff Statement on Accounting Issues for SPAC Warrants
The recent statement by the Staff of the SEC (the Staff Statement) will likely impact almost every SPAC or post-de-SPAC entity with warrants in its structure
SPAC Boom Dries Up as SEC Warning Curtails Year’s Hottest Trend
An SEC warning about SPAC accounting errors has not only chilled the red-hot market but triggered the first of what could be a flood of financial restatements by the popular blank-check companies.
SPAC transactions come to a halt amid SEC crackdown, cooling retail investor interest
SPAC mania has come to a screeching halt. Just last month, special purpose acquisition companies celebrated a head-turning milestone by breaking their 2020 issuance record in just three-month’s time.
Newly public chain BurgerFi gets a non-compliance alert from Nasdaq
But the burger brand said its delay in filing its 10-K form is due to new reporting requirements for SPACs and that it will get its paperwork in on time.
New SPAC scrutiny demands solid forecasts
Securities and Exchange Commission concerns over forward-looking disclosures in special purpose acquisition company (SPAC) deals make it important for CFOs keep a tight rein on their financial forecasts, a securities law specialist says.
SEC Guidance a Serious Threat to SPACs, Law Firms Say
The SEC’s recent guidance on special purpose acquisition companies has had a “chilling” effect on the market, the firms say.
Brilliant Acquisition Corporation: New SEC Guidance Relating to SPAC Warrants, Its Effect on the Company’s Periodic Filings and Compliance with Nasdaq Rules
Brilliant Acquisition Corporation announced today that, as the result of the SEC’s recent guidance, released on April 12, 2021 relating to the accounting treatment of certain warrants issued in connection with SPAC issuers, that the Company is conducting an analysis of the effect of the SEC’s guidance (if any) on the accounting treatment of its warrants.
Will private equity get caught up in a SPAC showdown with regulators?
The SPAC market has cooled considerably in recent weeks, with companies that went public by merging with a blank-check entity trading well off their highs, and a growing number of regulatory hurdles emerging for an investment strategy that often dominated financial news headlines in 2020.
Webinar: Key Takeaways: SPACs and How to Plug into the Opportunities They Present in Renewable Energy and Green Infrastructure
McDermott Will & Emery partners Tom Conaghan and Carl Fleming and Nicole Neeman Brady, CEO and director of the renewable energy SPAC, Sustainable Development Acquisition I Corp, discussed the rise of special purpose acquisition companies (SPACs), the opportunities they present in renewable energy and in the transition to green infrastructure and the complex legal and business challenges these vehicles present.
Regulators Step Up Scrutiny of SPACs With New View on Warrants
Some special-purpose acquisition companies have improperly accounted for warrants sold or given to investors, securities regulators said Monday, stepping up scrutiny of the popular vehicles.
Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”)
In a recent statement, Acting Chief Accountant Paul Munter highlighted a number of important financial reporting considerations for SPACs.
What’s behind Grab’s reported SPAC listing
Grab’s decision to opt for an SPAC listing rather than an IPO may seem strange to some, but it is a timely and strategic move, says Li Jianggan.
SEC to Wall Street: SPACs Aren’t a Way Around Securities Laws
The U.S. Securities and Exchange Commission has a fresh warning for the booming SPAC market: Blank-check companies aren’t an end-around to avoid disclosing key information to investors.