After the SEC ruling in April froze the SPAC IPO market, companies are finally moving forward--but with increased caution. Companies are checking twice before filing, anxious the SEC could release another accounting bombshell that could once more set them back.
Principal Scott Norris noted there is demand for auditors and attorneys to come up with warrant terms that can be labeled as equity, but blank-check companies and auditors are leery of scrutiny. “The problem is with what we don’t know,” Norris said. “This is the part that makes audit firms a little nervous, is that you don’t know when the SEC is going to start reviewing these filings if they’re going turnaround and come back with something else.”
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