Edoc Acquisition said it received notice from the Nasdaq’s Listing Qualifications Department that it is not in compliance with listing rules for failure to file a timely annual report.
The SPAC joins the growing ranks of blank-check companies that have delayed filing financial statements in the wake of the SEC’s April 12 comments regarding new accounting for warrants.
While there is no immediate impact on the SPAC’s market listing, the company has until June 15 to submit a plan to regain compliance. If Nasdaq accepts the plan, then Nasdaq may grant an exception of up to 180 calendar days from the due date of the Form 10-K, or until October 12, to regain compliance.
The SEC has said warrants should be treated as liabilities on the balance sheet, not as equity. The regulator has also said it is looking more closely at SPAC’s merger projections — moves that have all but shuttered SPAC IPO activity. Read more.
