SEC Takes Aim at SPACs | Pillsbury Winthrop Shaw Pittman LLP
March Madness extends into April as the Commission markedly increases its focus on SPACs. TAKEAWAYS Surprise pronouncements call into question use of the PSLRA safe harbor for projections and accounting treatment for warrants. Flurry of activity and nature of the SEC’s guidance may signal a desire to cool down the hot market for SPACs. The Securities and Exchange Commission (SEC or Commission) is raising its voice on Special Purpose Acquisition Companies (SPACs), alerting sponsors, targets, and investors to regulatory risks and raising new concerns about SPAC-related disclosures. The SEC’...
Source: jdsupra.com