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

Rhea-AI Summary

Avanti Acquisition Corp. (NYSE: AVAN) has received a formal notice from the NYSE for non-compliance due to the failure to file its Quarterly Report on Form 10-Q for Q1 2021. This delay follows the SEC's updated guidance impacting SPACs' warrant accounting, prompting many firms to reassess their financial reports. Avanti believes this won't affect its acquisition strategy or financial performance and expects to file the required report soon, remaining compliant with other listing standards. The company has a six-month window to rectify this non-compliance.

Positive

• Company expects to file Form 10-Q soon, demonstrating proactive communication.
• Belief that SEC guidance change will not impact acquisition strategy or financial performance.

Negative

• Failure to timely file Form 10-Q may lead to penalties or impact market perception.
• Increased scrutiny from SEC and auditors due to changed guidance may complicate future filings.

Avanti Acquisition Corp. (NYSE: AVAN) (the “Company”) today announced that it received a formal notice of non-compliance 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”) as required under the timely filing criteria established in Section 802.01E of the NYSE Listed Company Manual.

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”)” (the “Statement”), which clarified guidance for all SPAC-related companies regarding the accounting and reporting for their warrants. 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, has 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.

Under NYSE rules, the Company generally has six months following receipt of the notification of non-compliance to regain compliance with the continued listing standard, subject to any extensions by NYSE.

The Company believes the change in SEC guidance does not affect its strategy to acquire a target business or financial performance. The Company is in compliance with all other NYSE continued listing standards. The Company expects to file the Form 10-Q in the very near term and does not foresee any risk of non-compliance with the NYSE six-month remediation timeframe.

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. The above statements regarding the impact of the Statement on the Company’s financial statements, as well as the effect of the revision on any periodic SEC filings, including the timing of filing the Form 10-Q, constitute forward-looking statements that are based on the Company’s current expectations. 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 “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 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 to Avanti Acquisition Corp.'s non-compliance notice from the NYSE?

The non-compliance notice was due to the failure to timely file its Quarterly Report on Form 10-Q for Q1 2021.

How long does Avanti Acquisition Corp. have to regain compliance with the NYSE?

Avanti has six months to regain compliance following the notice of non-compliance.

Will the SEC's new guidance affect Avanti Acquisition Corp.'s business strategy?

Avanti believes that the SEC's new guidance will not affect its strategy to acquire target businesses or its financial performance.

What is the expected timeline for Avanti Acquisition Corp. to file its Form 10-Q?

The company expects to file the Form 10-Q in the near term.

What challenges might Avanti Acquisition Corp. face due to the SEC's updated guidance?

The changes put increased scrutiny on SPACs, leading to potential complications in future financial filings.