Blue Water Acquisition in an 8-K said it would postpone filing its annual report for 2020 while it reviews the SEC’s recent guidance on accounting for warrants.
SEC staff this week said warrants issued by SPACs should be characterized as liabilities for accounting purposes, rather than as equity securities, unless certain conditions are met.
Another SPAC, Better World Acquisition, filed a virtually identical 8-K on its delay in filing an annual report to evaluate the impact of the SEC’s statements. EDOC Acquisition likewise filed that its annual report would be delayed for the same reason.
Blue Water in the 8-K said it believes, on a preliminary basis, that both its public and private warrants may be required to be accounted for as liabilities in the annual report. The SPAC said additional time is needed to review the matter with its independent accounting firm. Read more.
