One of the dozens of companies to go public via SPAC merger in 2020 released a routine financial report with the wrong auditor’s name on it.
In the grand scheme of missteps, American Virtual Cloud Technologies need to release a statement in February and re-issue its year-end financials with the right auditor signature was minor.
But as a surge of private companies enter the public market through mergers with SPACs, more serious errors have already appeared, and financial accounting experts say it’s likely just the beginning, Bloomberg reports. Since January, three companies that went public through mergers with SPACs have made mistakes big enough to require them to restate their financial statements, securities filings show.
That number could swell after SEC officials issued guidance this week about accounting for warrants. Read more.
