The SEC slowed the market for SPACs earlier this year when staff accountants released a memo saying that warrants attached to SPAC shares should be treated as liabilities rather than as equity. The agency approved only 13 SPACs last month compared with 109 in March.

In order to comply with the new guidance, SPAC sponsors need to hire accountants and auditors to value the warrants each quarter using a complex calculation. When treating warrants as equity, sponsors make a simpler, up-front calculation. READ MORE