The federal government’s sudden change in how to account for warrants issued by SPACs will cost companies time and money by forcing them to analyze the value of the warrants each quarter, rather than just at the start of the SPAC, CFO Dive reports.
SPACs are also being forced to calculate the value using a complex type of modeling because of special features in the warrants, Harris Antoniades, managing director of global investment bank and advisory firm Stout, told CFO Dive.
“Companies preparing for a SPAC IPO need to go back and update their 10-Ks and 10-Qs, and those that have already IPOed and are close to signing the business combination agreement can’t close that deal until they go back and restate their 10-Ks and 10-Qs,” Antoniades said. Read more.
