An accounting error involving warrants that came to light in the spring forced hundreds of blank-check companies to flag financial statement mistakes at levels not seen in more than a decade, Bloomberg reports.
As reported in DealFlow’s SPAC News and elsewhere, more than 300 blank-check companies in the past three months issued corrections, or restatements, of prior financial statements — quadruple the number of restatements issued by all companies in 2020, according to research firm Audit Analytics. An additional 231 blank-check companies had to make smaller corrections via revision, according to the firm.
All told, about 86% of SPACs got stymied by the same complex accounting rule, the firm’s data shows. Read more.