Stemming from SEC Guidance Concerning Balance Sheet Treatment of Warrants, Accelerate Acquisition Corp. Announces Receipt of NYSE Continued Listing Standard Notice

Rhea-AI Summary

Accelerate Acquisition Corp. (NYSE: AAQC) announced receiving a formal notice of non-compliance from the NYSE on May 25, 2021, due to the late filing of its Quarterly Report on Form 10-Q for Q1 2021. This delay was attributed to new accounting guidance issued by the SEC on April 12, 2021, which prompted many SPACs, including AAQC, to reassess their warrant accounting. Following the notice, AAQC filed its Form 10-Q on May 26, 2021, and is now compliant with NYSE listing requirements.

Positive

• Filed Form 10-Q with the SEC on May 26, 2021, restoring compliance with NYSE regulations.

Negative

• Received notice of non-compliance from NYSE due to late filing of Q1 2021 report.
• Delay in financial statement preparation reflecting potential internal audit challenges.

Accelerate Acquisition Corp. (NYSE: AAQC) (the “Company”) today announced that it received a formal notice of non-compliance on May 25, 2021 from the New York Stock Exchange (the “NYSE”) relating to the Company’s failure to timely file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 (the “Form 10-Q”).

On April 12, 2021, the staff of the Securities and Exchange Commission (“SEC”) issued “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”),” clarifying the accounting guidance for warrants with terms that are common for SPACs (the “Statement”). The immediacy of the effective date of the new guidance set forth in the Statement has resulted in a significant number of SPACs re-evaluating the accounting treatment for their warrants with their professional advisors, including auditors and other advisors responsible for assisting SPACs in the preparation of financial statements. This, in turn, resulted in the Company’s delay in preparing and finalizing its financial statements as of and for the quarter ended March 31, 2021 and filing its Form 10-Q with the SEC by the prescribed deadline. Since receiving the non-compliance notice, the Company has filed its Form 10-Q with the SEC on May 26, 2021 and is in compliance with all other NYSE continued listing requirements.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this press release are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “outlook,” “guidance” or the negative of those terms or other comparable terminology. These statements are based on the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause future events to differ materially from those in the forward-looking statements, many of which are outside of the Company’s control. These factors include, but are not limited to, a variety of risk factors affecting the Company’s business and prospects, see the section titled “Risk Factors” in the Company’s Prospectus filed with the SEC on March 18, 2021 and subsequent reports filed with the SEC, as amended from time to time. Any forward-looking statements are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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FAQ

What led Accelerate Acquisition Corp. to receive a non-compliance notice from the NYSE?

The non-compliance notice was due to the company's late filing of its Quarterly Report on Form 10-Q for Q1 2021, triggered by new SEC accounting guidance.

When did Accelerate Acquisition Corp. file its Form 10-Q after receiving the non-compliance notice?

The company filed its Form 10-Q with the SEC on May 26, 2021.

What is the significance of the SEC's Staff Statement issued on April 12, 2021?

The SEC's Staff Statement clarified accounting treatment for SPAC warrants, leading to delays in financial statements for many SPACs, including Accelerate Acquisition Corp.

Is Accelerate Acquisition Corp. currently in compliance with NYSE listing requirements?

Yes, following the filing of its Form 10-Q, Accelerate Acquisition Corp. is in compliance with all NYSE continued listing requirements.