Starboard Acquisition in an 8-K said it would amend and refile financial statements with new accounting treatment for warrants. The move follows a review of the SPAC’s financials with its accounting firm and management’s decision to amend Starboard’s reports after the SEC warned last month that warrants should not be treated as equity assets.
Starboard is among the scores of SPACs to alert investors that previously filed financial statements can no longer be relied upon, following the SEC’s statement.
The SPAC is in a pending merger with data-center company Cyxtera Technologies that would value the combined company at $3.4 billion.
Proceeds of approximately $654 million include the SPAC’s $404 million cash in trust and commitments for a $250 million PIPE from institutional investors, including Fidelity Management & Research Company, and clients of Starboard Value. Read more.
