Atlantic Avenue Acquisition said in a filing it will amend its annual report for 2020 to reflect new accounting for warrant, which going forward will be treated as liabilities.
The decision follows the SEC staff statement April 12 that warrants should be accounted for as derivative liabilities, not equity assets. At least 100 SPACs have since filed notice of their intent to restate financials in keeping with the SEC’s position.
Atlantic Avenue Acquisition raised $250 million in an October IPO to target companies in technology, media and telecom, healthcare and fintech. Read more.
