The Latest SPAC News and Rumors: September 29, 2021
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.
Latest SPAC News: SEC tightens SPAC accounting rules, Mahindra weighs funding options for electric supercar unit, and Lucid to start deliveries of electric sedans
U.S. SEC Cracks Down a Second Time on SPAC Equity Accounting Treatment
The U.S. Securities and Exchange Commission has told top auditors of SPACs to account more strictly for public shares in these shells, according to multiple industry accountants and lawyers familiar with the change.
SEC staff have privately told auditors that “redeemable” shares issued by these shells must be treated as temporary – known as “mezzanine” – equity, in a break from the long-standing industry practice of treating them as permanent equity, according to Reuters.
Mahindra Is Said to Weigh Electric Supercar Unit Funding Options
Mahindra & Mahindra Ltd. is weighing options to raise funds for its Automobili Pininfarina unit as it seeks to bring a delayed $2.2 million electric hypercar into production, Bloomberg said.
A merger with a blank-check company is one scenario being studied for Automobili Pininfarina and Mahindra could seek to value the unit at around $500 million.
READLucid to Start Deliveries of Electric Cars With Range Exceeding Tesla’s in October
U.S. startup Lucid Group Inc. (NASDAQ:LCID) said on Tuesday it will start delivering luxury electric sedans with a Tesla-beating driving range in late October, posing a major challenge to the market leader whose sales of premium models have stagnated.