Following the release in April of the statement by SEC staff requiring most warrants issued by SPACs to be accounted for as liabilities, SPACs scrambled to determine whether they needed to revise or restate their previously issued financial statements. At the same time, SPACs have been seeking accounting guidance to determine whether and how to revise the agreements governing warrants so that their warrants qualify for equity classification.
There now is clarity on the path forward. This client alert prepared by the law firm of White & Case explains the current state of affairs and provides practical guidance to pre- and post-IPO SPACs seeking to implement changes to permit equity classification for their warrants. Read more.
