Class Acceleration Corp. Receives NYSE Notice Regarding Delayed Form 10-Q Filing

Rhea-AI Summary

Class Acceleration Corp. (NYSE: CLAS, CLAS.U, CLAS.W) announced it is not in compliance with NYSE rules due to the failure to timely file its Q1 2021 Form 10-Q. The NYSE has provided a grace period until November 24, 2021, for the Company to regain compliance by filing the overdue report. The delay is attributed to the recent SEC guidance impacting the accounting for warrants issued by SPACs, which has prompted a reassessment of financial statements. The Company is actively working on completing and filing its Q1 2021 report before the deadline.

Positive

• The NYSE has provided time until November 24, 2021, for the Company to regain compliance.
• The Company is actively working to file its Q1 2021 Form 10-Q and expects to meet the deadline.

Negative

• Failure to timely file the Q1 2021 Form 10-Q indicates a lack of compliance with NYSE regulations.
• The delay in filing is linked to uncertainties caused by new SEC guidance regarding SPAC warrant accounting.

WOODSIDE, Calif., June 03, 2021 (GLOBE NEWSWIRE) -- Class Acceleration Corp. (NYSE: CLAS, CLAS.U, CLAS.W) (the “Company”) today announced 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 quarter ended March 31, 2021 (the "Q1 2021 Form 10-Q") with the Securities and Exchange Commission (the "SEC"). The notice has no immediate effect on the listing of the Company's stock on the NYSE.

The NYSE informed the Company that, under the NYSE's rules, the Company can regain compliance with the NYSE's continued listing requirements by filing the Q1 2021 Form 10-Q with the SEC at any time prior to November 24, 2021.

As the Company reported in its Form 12b-25 filed with the SEC on May 17, 2021, the Company is currently determining the extent to which the April 12, 2021 statement released by the Staff of the SEC (the "Statement") relating to the accounting and reporting considerations for warrants issued by special purpose acquisition companies ("SPACs") will impact its financial statements as of and for the fiscal quarter ended March 31, 2021, which will be included in the Q1 2021 Form 10-Q.

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. The Company is working diligently to complete the Q1 2021 Form 10-Q and expects to file such report in advance of the deadline and thereby regain compliance with the NYSE continued listing requirements.

Forward-Looking Statements
This press release contains statements that constitute “forward-looking statements,” including with respect to the anticipated use of the net proceeds. No assurance can be given that the net proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and preliminary prospectus for the offering filed with the SEC. Copies are available on the SEC’s website, www.sec.gov.

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:
Caroline Moe Hoch
Class Acceleration Corp.
650-380-9550
cmoehoch@gsv.com

Andrew M. Berger
SM Berger & Company
216-464-6400
andrew@smberger.com

 

FAQ

What is the compliance status of Class Acceleration Corp. regarding NYSE regulations?

Class Acceleration Corp. is currently not in compliance with NYSE regulations due to a failure to timely file its Q1 2021 Form 10-Q.

What is the deadline for Class Acceleration Corp. to file its Q1 2021 Form 10-Q?

The deadline for Class Acceleration Corp. to file its Q1 2021 Form 10-Q is November 24, 2021.

What caused the delay in Class Acceleration Corp.'s Q1 2021 Form 10-Q filing?

The delay is due to the recent SEC guidance affecting the accounting for warrants issued by SPACs, prompting re-evaluation of financial statements.

What stock symbols are associated with Class Acceleration Corp.?

The stock symbols associated with Class Acceleration Corp. are CLAS, CLAS-UN, and CLAS-W.