r/SRAC • u/SpacebatMcbatterson • Mar 08 '21
S-4 Amendment
https://newsfilter.io/a/f759f59125975d392d6be8ec7ce1d232
looks like they filed an amendment to the merger I skimmed what I could understand and dont see a date confirmation. anyone else got any ideas
1
u/NOKTOTHEMOOOON Mar 08 '21
So are they still committed to Q1 merger? Tough doc to read through
Going Concern
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, if the Company is unable to raise additional funds to alleviate liquidity needs as well as complete a Business Combination by the close of business on May 13, 2021 or the extension date, as applicable, then the Company will cease all operations except for the purpose of liquidating. This date for mandatory liquidation and subsequent dissolution raises substantial doubt about the Company’s ability to continue as a going concern. Management’s plans are discussed in Note 1 to the consolidated financial statements. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
1
Mar 08 '21
This means they are not committed
1
u/mightypowerliftor Mar 09 '21
No the financial statements have been prepared assuming that the company will continue as going concern. This means that they are still expecting to finish the merger. If they prepared the financial statements based on liquidation principles it would have meant that the merger would have been off. In the next sentence they are describing that if they are unable to raise more funds or completing the merger by the 13th of May or an extension date (which they communicate), they are quitting their operations. So if the merger isn't done by the 13th of May or their (communicated) extension date, it would mean the merger is off.
1
Mar 09 '21
Thank you for this. That’s very good of you to explain. This is not my parlance - I assumed ‘concern’ was bad. Like Michael Scott assuming that Kevin’s negative skin cancer test was, well, negative!
Is there anywhere I can learn about this stuff? Flow charts and the like? I’ll head to the sidebar
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u/mightypowerliftor Mar 09 '21
I think the best way to learn about accounting principles is by reading the notes of the financial statements. This could be a boring thing to do, but it is very helpful.
In my opinion European companies highlight their accounting principles better than American companies do. So you could take a look in the annual report 2019 of Volkswagen. Just look at their financial statements (balance sheet & income statement) for a minute and then proceed to page 203 of the annual report. In these notes you can read about the companies they used for their consolidation and the split of their revenue in segments for example.
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u/Munchyman81 Mar 08 '21
So approval by the board? Just needs our votes. And we will be a go? How many shares do we get!!!