Another speed bump for SPACs arises as the Securities and Exchange Commission (SEC) is requiring the restatement of their financial results due to incorrect classification of Class A shares offered to investors. Initially, auditors and companies were hopeful for a SPAC market resurgence following April's filing debacle, but the latest regulatory intervention could once more freeze the market as companies file a Form 8K and the related paperwork backlog.
“This is a pervasive issue; everyone’s dealing with it because everyone did it wrong,” said principal Scott Norris, who has been at the forefront of the SPAC regulatory overhaul since the warrant reclassification.
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