Apollo Strategic Growth Capital Announces Receipt of Notification Letter from NYSE

Rhea-AI Summary

Apollo Strategic Growth Capital (NYSE: APSG) announced non-compliance with NYSE rules due to a delay in filing its Q1 2021 Form 10-Q with the SEC. The NYSE issued a notice stating that the company has until November 25, 2021 to rectify this situation. The delay stems from a reevaluation of the accounting treatment for its warrants based on recent SEC guidance, which requires these to be classified as liabilities measured at fair value. The company is actively working to complete and file its report promptly.

Positive

• The company has a clear timeline of six months to regain compliance with NYSE listing standards.

Negative

• Failure to file the Q1 2021 Form 10-Q may signal potential governance issues.
• Reevaluation of warrants as liabilities could indicate financial instability.

NEW YORK, May 28, 2021 (GLOBE NEWSWIRE) -- Apollo Strategic Growth Capital (the “Company”) (NYSE: APSG) announced today that it received a notice from the New York Stock Exchange (the “NYSE”) indicating that the Company is not in compliance with Section 802.01E of the NYSE Listed Company Manual as a result of its failure to timely file its Quarterly Report on Form 10-Q for the period ended March 31, 2021 (the “Q1 2021 Form 10-Q”) with the U.S. Securities and Exchange Commission (the “SEC”).

The NYSE informed the Company that, under NYSE rules, the Company will have six months from May 25, 2021 to file the Q1 2021 Form 10-Q with the SEC. The Company can regain compliance with the NYSE listing standards at any time prior to that date by filing its Q1 2021 Form 10-Q.

As the Company reported in its Form 12b-25 filed with the SEC on May 17, 2021, the Company reevaluated the accounting treatment of its warrants (the “Warrants”) following the issuance by the Staff of the SEC (the “SEC Staff”) of the “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”)” (the “SEC Staff Statement”), which provides guidance for all SPACs regarding the accounting and reporting for their warrants. The Company concluded that, based on the SEC Staff Statement, the Warrants should be accounted for as a liability and measured at fair value, with changes in fair value for each period reported in the Company’s statement of operations. The Company continues to work diligently to complete the Q1 2021 Form 10-Q as soon as possible.

About Apollo Strategic Growth Capital
Apollo Strategic Growth Capital is a special purpose acquisition company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. It may pursue an initial business combination target in any business or industry.

Forward-Looking Statements

This press release may include, and oral statements made from time to time by representatives of Apollo Strategic Growth Capital may include, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements regarding possible business combinations and the financing thereof, and related matters, as well as all other statements other than statements of historical fact included in this press release are forward-looking statements. When used in this press release, words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions, as they relate to us or our management team, identify forward-looking statements. Such forward-looking statements are based on the beliefs of management, as well as assumptions made by, and information currently available to, the Company’s management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in the Company’s filings with the SEC. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are qualified in their entirety by this paragraph. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth under the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the SEC on March 30, 2021. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Contacts

Apollo Strategic Growth Capital

For investors please contact:
info@apollostrategicgrowthcapital.com

For media inquiries please contact:
communications@apollo.com

FAQ

What does the NYSE notice mean for Apollo Strategic Growth Capital (APSG)?

The notice indicates that APSG has not complied with NYSE rules due to a delay in filing its Q1 2021 Form 10-Q, giving them until November 25, 2021, to rectify the issue.

Why is Apollo Strategic Growth Capital (APSG) delayed in filing its Q1 2021 Form 10-Q?

The delay is due to the company reevaluating the accounting treatment of its warrants as liabilities in accordance with new SEC guidance.

What are the implications of APSG's warrant accounting change?

The change requires warrants to be measured at fair value, potentially reflecting negatively on the company's financial status.

How long does Apollo Strategic Growth Capital (APSG) have to comply with NYSE regulations?

APSG has six months from May 25, 2021, to file its Q1 2021 Form 10-Q and regain compliance.