PERSPECTIVE: SPACs Warrant Treatment
Our Accounting & Finance team has published a new whitepaper on a special purpose acquisition company (SPAC) warrant treatment. A SPAC, also referred to as a blank-check company, is a publicly traded firm with no operations and a large sum of capital with the sole purpose of purchasing a privately held company.
As a way to incentivize capital infusion, SPAC’s will typically offer investors shares of common stock and warrants to purchase additional stock at a later date with the hope that the stock price will rise once the company goes public.
For this and other technical, authoritative guidance, visit our Perspectives here.VIEW PERSPECTIVE