The Latest SPAC News and Rumors: November 8, 2022
Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.
Latest SPAC News: Southland awarded $596M contract, Foxconn invests another $170M into Lordstown Motors, and study shows SPAC, acquisitions and organizational structure changes increased audit fees
Southland Awarded $596 Million SR 23 Bridge Project over St. Johns River for the Florida Department of Transportation
Southland Holdings, LLC (“Southland”) announced today it has been awarded a $596 million contract to construct a new bridge over the St. Johns River near Jacksonville for the Florida Department of Transportation (“FDOT”). The project will be completed by Southland’s Transportation segment.
On May 25th, 2022, Southland entered into an Agreement and Plan of Merger (the “Agreement”) with publicly-traded Legato Merger Corp. II, a special purpose acquisition company (NASDAQ: LGTO, LGTOU, and LGTOW) (“Legato”).
READFoxconn invests another $170M into EV SPAC Lordstown Motors
Taiwanese manufacturer Foxconn is increasing its investment in EV startup Lordstown Motors (NASDAQ:RIDE) by buying $170 million in common stock and newly created preferred shares.
Once the deal is complete, Foxconn will hold all of Lordstown’s outstanding preferred stock and 18.3% of its common stock on a pro forma basis. Foxconn will also have the right to two board seats, the companies said Monday.
Lordstown Motors is one of several companies that went public over the past two years by merging with a special purpose acquisition company DiamondPeak Holdings Corp., with a market value of $1.6 billion.
READFERF Audit Fee Study Shows SPAC, Acquisitions, and Organizational Structure Changes Increased Audit Scope and Fees
The Financial Education & Research Foundation (FERF)—the independent non-profit research affiliate of Financial Executives International (FEI)—today released the findings of its 13th Annual Public Company Audit Fee Study. The Study looks at various factors affecting financial reporting and external audits. This includes value derived from external audits; auditor insights; process efficiencies for public company preparers; and key factors driving audit fee changes.
Overall, average audit fees increased by a slight 2.5 percent from 2020 to 2021. Expanded scope was cited as the primary reason as stated by 53 percent of member company respondents.
Beyond existing filers, the Study shows that a significant influx of companies that entered the capital markets through SPAC and IPOs continued to influence the overall audit marketplace.