Nearly 24 more SPACs revealed they have received delisting notices within the last week from their stock exchanges. That brings the total to more than 60 blank-check companies that have received a delisting notice from either the Nasdaq or NYSE since May 28.
All of the notices were triggered by failure to file timely financial reports with the SEC. Most of the SPACs laid the blame for the delay on the SEC staff statement in April regarding new accounting for warrants. The regulator said the instruments should be treated as derivative liabilities and accounted for at fair value. Listing warrants as equity assets had long been the norm.
The regulator’s announcement has already led to a tidal wave of amended and refiled financial reports across the SPAC space as management teams consulted with their accounting firms on how to proceed.
SPACs that reported receiving delisting notices from either the NYSE or Nasdaq are below in alphabetical order with links to their respective announcements. None of the blank-check companies are in immediate danger of being delisted from an exchange, as companies typically have at least two months to regain compliance with listing rules.
Eucrates Biomedical Acquisition
