Fenwick corporate partner Ran Ben-Tzur was quoted in a recent Crunchbase article about special purpose acquisition company (SPAC) activity drawing increased scrutiny from U.S. Securities and Exchange Commission (SEC) regulators.

“There was a ton of euphoria about SPACs over the last nine months or so, or the last year,” said Ben-Tzur.

He noted that this “euphoria” has been tempered by recent SEC signals that its regulators may be tougher on SPAC revenue projections and may also require warrants to be categorized as liabilities.

“Both of those statements in combination have, number one, caused companies to reassess if SPACs were the right path with all the regulatory scrutiny, and it’s had a tangible impact on the SPAC market,” Ben-Tzur said.

Ben-Tzur says that the SEC’s shifting regulatory stance has created “uncertainty in the market.”

The full article is available on Crunchbase.

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