Landcadia III is the latest SPAC to file amended financials following the SEC’s market-shaking statement last month about treating warrants as liabilities on the balance sheet.
The SPAC’s amended filing offers a glimpse of the impact the SEC’s April 12 statement has made on a blank-check company’s balance sheet.
Landcadia III in an 8-K filing said as of Dec. 31, the value of its public warrants and sponsor warrants were $37 million and $18.72 million, respectively.
“We have restated our financial statements to reflect the initial warrant derivative liability of $28.03 (million) with an offsetting amount recorded in additional paid in capital. Subsequently we adjusted the liability to fair value at Dec. 31, and recorded a change in fair value of warrant derivative liability of $27.69 million in other income and expense on our statement of operations. As of Dec. 31, our warrant derivative liability was $55.72 million.”
Going forward, the SPAC said the new accounting could have an adverse impact on operations. Read more.
