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CANTON – An accounting change prompted by an SEC decision factored into a $126.1 million first quarter loss for the Hall of Fame Resort & Entertainment Co.
The accounting change requires the company to list warrants an option to purchase shares of the company s stock as a liability, which created a $116.4 million expense.
The Securities and Exchange Commission ruled in April that warrants issued by special purpose acquisition companies should be listed as liabilities. Hall of Fame Resort & Entertainment Co. formed last summer when Hall of Fame Village LLC merged with Gordon Pointe Acquisition Corp., a special purpose acquisition company.
The new company is developing the Hall of Fame Village powered by Johnson Controls, a nearly $1 billion campus around the Pro Football Hall of Fame. An office and retail building, Constellation Center of Excellence, is under construction and more work is expected to begin later this year.