G&P Acquisition said in an 8-K filing it would amend its balance sheet to account for its warrants as liabilities in keeping iwth the SEC’s statement last month on the instruments.
G&P noted that its prior accounting for the warrants as components of equity instead of as derivative liabilities did not have any effect on the company’s previously reported cash or funds held in the trust account.
The SPAC is among the scores of blank-check companies to restate financials after the regulator said warrants should not be treated as assets on the balance sheet. The announcement lit up the phone lines of accounting firms from coast to coast as SPAC management teams sought advice.
G&P raised $175 million in a March IPO to target investment opportunities in the food and beverage, consumer goods, automotive and hospitality sectors. Read more.
