Wall Street accountants and lawyers are trying to figure out new equity agreements to lure investors back to the blank-check company market after the SEC cracked down on the use of warrants, Reuters reports, citing six industry executives.
They are discussing jettisoning warrants issued by SPACs in favor of rights agreements, or dramatically restructuring the warrants after the SEC said many SPAC equity warrants should be considered liabilities.
The SEC’s surprise April announcement ground an already-slowing SPAC market to a halt as accountants and lawyers scrambled to figure out a fix with SEC staff, the people said. Read more.
