S-1 filings made easy for SPAC transactions

2020 was a record-breaking year for IPOs of special-purpose acquisition companies (SPAC). In 2021, this record was surpassed in the first quarter by raising $98.6 billion. As this success of SPAC transactions continues, the popularity of SPACs to raise capital rather than using traditional IPOs has also been on the rise.

However, this comes with its share of scrutiny too. Usually known to have less regulatory scrutiny, the SEC is now reviewing filings and seeking more transparent disclosures for SPACS. They have made apparent their detailed concerns around fees, conflicts, and sponsor compensation.

Recently, SEC has issued a statement in March 2021 that SPAC dealings will have to go through the same monitoring processes as regular IPOs. This indicates that significant time and resources will be needed for accounting and compliance reporting. These statements are expected to comply with public-company GAAP disclosure requirements as well as SEC rules and requirements.

For instance, when it comes to Form S-1, companies are required to provide information on the planned use of capital proceeds, detail the current business model and competition, and give a brief prospectus of the planned security itself, offering price methodology and any dilution that will occur to other listed securities. Being the initial registration form for new securities, this form requires an accurate filing to avoid rejection of an IPO.

Similarly, other forms such as 10-Ks, 10-Qs, 8-ks all other SEC forms will also need dedicated time spent on accurate preparation and submission to the SEC.

DataTracks can help companies understand the different reporting demands of the SEC and guide firms through the entire SPAC process. We have a flagship product – Rainbow – to help accounting, finance, and legal departments save time and resources.

Easy to use, on a secure cloud, and with keen collaborative nuances, Rainbow may be the answer to your SPAC concerns. Role hierarchies, intuitive controls, and validations, as well as a granular audit trail, make Rainbow one of the most effective compliance SaaS in the market today.

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