Entries tagged “SPACs”
SEC Statement on Accounting for Warrants in SPAC IPOs is Causing Some Hands to Wring
im-report Debbie A. Klis · April 15, 2021
On April 12, 2021, the Securities and Exchange Commission (SEC) released a new interpretation, without notice or a comment period, which calls into question whether warrants issued by special purpose acquisition companies (SPACs) could continue to be considered equity instrument. The SEC’s new interpretation reveals a position that is contrary to widespread practice of classifying…