SPAC Transactions Continue To Draw SEC's Attention

SEC has been doling out investor bulletins, disclosure guidance, alerts, and staff statements relating to Special Purpose Acquisition Vehicles (SPAC) for a while now.  On March 31, 2021, SEC released not one but two separate statements on select issues pertaining to SPACs, one from the Division of Corporation Finance and another from the Office of the Chief Accountant.

The first announcement focused on highlighting certain limitations associated with completing a business combination with a SPAC and emphasizing the immediate set of compliance and disclosure requirements that come with being a public company, as a result of SEC regulations and securities exchange rules, like those of NASDAQ or NYSE.  The tone of the announcement almost seemed to draw attention to, if not warn, private companies who may be too hasty to jump on the SPAC bandwagon without considering the various resources and extensive planning it takes to stay compliant and avoid scrutiny from