SEC, Gensler Put SPAC Players On Notice With Latest Action

By Al Barbarino (July 15, 2021, 9:57 PM EDT) -- The regulatory hammer that the U.S. Securities and Exchange Commission brought down on a special purpose acquisition company deal this week, accompanied by a rare statement from the agency's chairman, sent a strong signal to the key players in the booming SPAC market: Don't cut corners, or you could get burned.

Tuesday's settlement resolving the SEC's misrepresentation claims carried a more than $8 million fine against various parties involved in the acquisition of a company developing spaceflight technology by a SPAC called Stable Road Acquisition. The SEC said investors were misled into believing a propulsion system developed by the merger target company, Momentus, had...

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