CC Neuberger Principal Holdings II in an 8-K said it will file an amended annual report to reflect changes in accounting for its warrants as liabilities.
The move follows consultation with the SPAC’s accounting firm and comes on the heels of the SEC’s statement last month that warrants should not be treated as equity instruments.
In its review of the matter, the SPAC said because its warrants include a cash settlement feature that could arise in certain events, such as a tender or exchange offer accepted by more than 50 percent of shareholders, shifting warrants to the liabilities side of the balance sheet was the prudent move.
The SPAC raised $600 million in a July 2020 IPO. Read more.
