Updates on Regulation, Trading, and Market Reforms for the Alternative Investment Community

CategorySPACs

SEC Statement on Accounting for Warrants in SPAC IPOs is Causing Some Hands to Wring

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 warrants...

Updates on Regulation, Trading, and Market Reforms for the Alternative Investment Community