Latest salvo in the SEC’s broader crackdown on special acquisition vehicles it deems a threat to investors
New rules will cause most to fall below the minimum equity capital requirement of Nasdaq’s capital market tierPicture: MICHAEL NAGEL/BLOOMBERG
The change will cause most Spacs to fall below the minimum equity capital requirement of Nasdaq’s Capital Market tier, pushing those looking to list on Nasdaq to its Global Market tier, which has no equity requirement, the people said. “It’s a change in accounting treatment and a change in the way the SEC views the issue,” said Jeffrey Weiner, CEO of Marcum, which handles more than 40% of Spac audit work, according to data from SPACInsider.
In April, the SEC issued guidance suggesting hundreds of Spacs should account for equity warrants as debt, putting a damper on the market and driving efforts to test new contracts. The SEC’s new stance is in line with its official guidance on how to treat redeemable shares and Generally Accepted Accounting Principles .
Other major Spac auditors include Withum and KPMG. Spokespeople for the two companies declined to comment.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Reading frees us from the conditions holding us backMPHO NGOEPE | In the spirit of the NDP 2030, we should participate fully in efforts to liberate ourselves from conditions that hinder the flowering of our talents. One such effort is reading.
Read more »
TOM EATON | Before parties promise us the world, let’s start with the basicsWe will soon drown in unnecessary manifestos when the message from the public is loud and clear
Read more »
Pelosi hints infrastructure delay as US Congress begins huge weekPelosi told her Democratic colleagues in a letter Saturday that they 'must' pass both of Biden's huge spending bills
Read more »
‘New start’ in US-China relations as Huawei executive flies home'Hostage diplomacy' brings end to fracas that began with Meng Wanzhou's arrest in 2018
Read more »
NIXON TASAKANA | Africa must rise up against the US-China cold war on its soilCoups in Africa have more to do with who controls its minerals than its people’s wellbeing
Read more »