SPAK - SEC guidance prompts SPACs like Chamath Palihapitiya's Social Capital IV to restate figures

Financier Chamath Palihapitiya’s widely watched Social Capital Hedosophia Holdings Corp. IV (IPOE) and other special purpose acquisition companies have begun warning investors that due to new SEC guidance, their audited financial statements “should no longer be relied upon.”IPOE wrote in an 8-K filing with the U.S. Securities and Exchange Commission that in light of the SEC’s guidance, “it is appropriate to restate certain items on the company’s previously issued audited balance sheet … and the company’s previously issued audited financial statements.”The filing comes at a time when IPOE is in the process of merging with hot fintech SoFi at an $8.65B valuation.About a half-dozen other SPACs have made similar statements in SEC filings, according to Bloomberg.The SEC threw the SPAC market into turmoil last week when it issued guidance on how special purpose acquisition companies should account for the warrants that they typically issue as part of initial public offerings.The

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SEC guidance prompts SPACs like Chamath Palihapitiya's Social Capital IV to restate figures