Atlantic Avenue Acquisition Corp Receives Expected Notice from NYSE Regarding Delayed Quarterly Report

Rhea-AI Summary

Atlantic Avenue Acquisition Corp (NYSE: ASAQ) received a notice from NYSE Regulation on May 25, 2021, indicating non-compliance due to the late filing of its Quarterly Report on Form 10-Q for the quarter ending March 31, 2021. The NYSE has granted the company a six-month grace period to file the report. The delay stems from a reevaluation of the accounting treatment for warrants following an SEC statement issued on April 12, 2021. If the company fails to comply within the grace period, it may face suspension or delisting.

Positive

• The NYSE has provided a six-month grace period for compliance with the 10-Q filing.

Negative

• The company has delayed filing its Quarterly Report on Form 10-Q, which may raise concerns about transparency.
• The ongoing reevaluation of warrant accounting could indicate potential challenges in financial reporting.

STAMFORD, Conn., May 27, 2021 /PRNewswire/ -- Atlantic Avenue Acquisition Corp (NYSE: ASAQ) (the "Company"), announced today that, on May 25, 2021, it received a notice ("Notice") from NYSE Regulation stating that the Company is not in compliance with the Section 802.01E of the Listed Company Manual (the "Rule") because the Company failed to timely file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 (the "Form 10-Q") with the Securities and Exchange Commission ("SEC"). The NYSE informed the Company that the Company has six months from the 10-Q filing due date to file the Form 10-Q. The Notice has no immediate effect on the listing or trading of the Company's securities on the NYSE.

As previously disclosed in the Form 12b-25 filed on May 17, 2021 by the Company, on April 12, 2021, the Acting Director of the Division of Corporation Finance and Acting Chief Accountant of the SEC together issued a statement regarding the accounting and reporting considerations for warrants issued by special purpose acquisition companies entitled "Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies ("SPACs")" (the "SEC Statement").  As result of the SEC Statement, the Company's management is reevaluating the accounting treatment of (i) the redeemable warrants that were included in the units issued by the Company in its initial public offering and (ii) the redeemable warrants that were issued in a private placement.

The Company is continuing to review the impacts of the SEC Statement on the Company's unaudited financial statements for the quarterly period ended March 31, 2021 and is working diligently to complete the Form 10-Q as soon as reasonably practicable with the intention of regaining compliance. If the Company fails to file the 10-Q or any subsequent delayed filings within six months from the filing due date, the NYSE may, in its sole discretion, allow the Company's securities to trade for up to an additional six months depending on the circumstances. If the NYSE determines that an additional six-month trading period is not appropriate, the Company's securities will be subject to suspension and delisting from the NYSE.

Atlantic Avenue Acquisition Corp

Atlantic Avenue Acquisition Corp is a special purpose acquisition company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. 

Forward-Looking Statements

This press release may include "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release are forward-looking statements. These forward-looking statements include, without limitation, the Company's expectations regarding the timing of the filing of the Form 10-Q. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results, including those under "Risk Factors" in the Annual Report on Form 10-K, filed March 25, 2021, and in subsequent reports filed with the SEC. Most of these factors are outside the Company's control and are difficult to predict. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

For more information, contact:

Barry Best, CFO
info@asaqspac.com
(203) 989-9709

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SOURCE Atlantic Avenue Acquisition Corp

FAQ

What notice did Atlantic Avenue Acquisition Corp receive from the NYSE?

Atlantic Avenue Acquisition Corp received a notice of non-compliance due to the late filing of its Quarterly Report on Form 10-Q.

What is the deadline for Atlantic Avenue Acquisition Corp to file its 10-Q?

The company has six months from the original filing due date to file the Form 10-Q.

How does the SEC statement impact Atlantic Avenue Acquisition Corp?

The SEC statement requires the company to reevaluate its accounting treatment of warrants, potentially affecting its financial statements.

What are the consequences if Atlantic Avenue Acquisition Corp fails to file the 10-Q?

Failure to file within the grace period may result in suspension or delisting of the company's securities from the NYSE.

What is the main purpose of Atlantic Avenue Acquisition Corp?

Atlantic Avenue Acquisition Corp is a special purpose acquisition company (SPAC) formed to facilitate business combinations.