Northern Star Investment Corp. III Receives NYSE Notification of Non-Compliance With Listing Rules
Northern Star Investment Corp. III (NYSE: NSTC) has received notification from NYSE regarding non-compliance with listing rules due to the absence of its Quarterly Report on Form 10-Q for Q1 2021. This delay is attributed to the re-evaluation of accounting treatment for warrants following SEC guidance, resulting in increased demand for third-party accountants. The company is actively working on filing the Form 10-Q, and while immediate effects on trading are not anticipated, failure to file within six months could lead to further sanctions. The firm emphasizes its forward-looking statements and potential risks involved.
- The company is actively working to resolve the filing issue for its Form 10-Q.
- No immediate effect on the listing of the Company's securities on NYSE.
- Failure to file the Form 10-Q within six months could lead to potential sanctions from NYSE.
- Increased reliance on third-party accountants has caused delays in financial reporting.
Northern Star Investment Corp. III (NYSE: NSTC) ("Northern Star III" or the "Company") today announced that on May 25, 2021, it received a letter from the New York Stock Exchange ("NYSE") advising the Company that the Company did not comply with Section 802.01E of NYSE’s Listed Company Manual (the “Rule”) for continued listing because NYSE had not received the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2021 (the “Form 10-Q”).
On April 12, 2021, the Staff of the U.S. Securities and Exchange Commission (the “SEC”) issued the “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”) (the “SEC Statement”), which clarified guidance for all SPAC-related companies regarding the accounting and reporting for their warrants. As a SPAC, the Company has been re-evaluating the accounting treatment of its warrants as equity, and determining whether, based on the SEC Statement, such warrants should be, and should previously have been, classified as liabilities measured at fair value, with non-cash fair value adjustments recorded in earnings at each reporting period. Because the Company does not have full-time accounting and administrative staff, it is reliant on third-party accountants to perform this evaluation in order to inform the Company’s determination. The SEC Statement has given rise to significantly increased demand for the services of third-party accountants, delaying resolution of this issue and finalization of the Form 10-Q.
The Company is working diligently to complete the Form 10-Q. This notification has no immediate effect on the listing of the Company's securities on NYSE. If the Company fails to file the Form 10-Q within six months of its original due date, the NYSE may, in its sole discretion, allow the Company’s securities to continue to trade on the NYSE for up to an additional six months depending on specific circumstances, as outlined in the Rule.
About Northern Star Investment Corp. III
Northern Star Investment Corp. III is a blank check 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 or entities.
Forward Looking Statements
This press release includes certain “forward-looking” statements, as that term is defined under the federal securities laws. Forward-looking statements include, among others, statements about the Company’s plans to restate its consolidated financial statements and amend prior SEC filings, the timing of such restatement, and the restatement’s effect on the Company’s prior consolidated financial statements. These statements are often, but not always, made through the use of words or phrases such as “may,” “will,” “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “predict,” “potential,” “opportunity,” and similar words or phrases or the negatives of these words or phrases. These forward-looking statements are based on the Company’s current assumptions, expectations, and beliefs and are subject to substantial risks, estimates, assumptions, uncertainties, and changes in circumstances that may cause actual results, performance, or achievements to differ materially from those expressed or implied in any forward-looking statement, including, among others, the timing and nature of the final resolution of the accounting issues necessary to complete the Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2021; any further delay in the filing of required periodic reports with the SEC; whether a restatement of financial results will be required for other accounting issues for the same or other periods in addition to the restatement currently expected by management; additional uncertainties related to accounting issues generally; and adverse effects on the Company’s business as a result of the restatement process. In addition, please refer to the risk factors contained in the Company’s SEC filings. Because the risks, estimates, assumptions and uncertainties referred to above could cause actual results or outcomes to differ materially from those expressed in any forward-looking statements, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date hereof, and, except as required by law, the Company assumes no obligation and does not intend to update any forward-looking statement to reflect events or circumstances after the date hereof.
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FAQ
What caused Northern Star Investment Corp. III's compliance issue with NYSE?
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