CHP Merger said it received notice from Nasdaq that it is in violation of listing rules for failure to file timely financial statements with the SEC.
The SPAC is working to restate financials for 2019 and 2020 to follow the SEC’s position that warrants should be treated as liabilities with non-cash fair value adjustments recorded in earnings at each reporting period. As with virtually all SPACS, CHP Merger had been accounting for warrants as equity.
The SPAC said it currently expects that the reclassification of the warrants will have no impact on historical liquidity, cash flows or revenues.
CHP expects to file restated financials as soon as practicable.
Nasdag listing rules typically allow companies two months to regain compliance with reporting requirements, with occasional extensions of up to 180 days beyond that limit.
CHP raised $250 million in an October 2019 IPO to target US healthcare companies. Read more.
