Item 8.01 Other Events.
On April 12, 2021, the staff of the Securities and Exchange Commission (the
"SEC") issued a public statement entitled "Staff Statement on Accounting and
Reporting Considerations for Warrants issued by Special Purpose Acquisition
Companies" ("SPACs") (the "Statement"). In the Statement, the SEC staff
expressed its view that certain terms and conditions common to SPAC warrants may
require the warrants to be classified as liabilities on the SPAC's balance sheet
as opposed to equity.
L Catterton Asia Acquisition Corp (the "Company") has previously classified its
public and private placement warrants ("Warrants") issued in connection with its
initial public offering and private placement as equity within the Company's
financial statements, and after discussion and evaluation, including with the
Company's independent auditors, the Company has concluded that its warrants
should be presented as liabilities as of the initial public offering date
reported at fair value with subsequent fair value remeasurement at each
reporting period.
On May 24, 2021, the audit committee of the board of directors of the Company
concluded, after discussion with the Company's management, legal counsel and
auditors, that the Company's audited balance sheet as of March 15, 2021 filed as
Exhibit 99.1 to the Company's Current Report on Form 8-K filed with the SEC on
March 19, 2021 (the "Form 8-K") should no longer be relied upon due to changes
required to reclassify the Warrants as liabilities to align with the
requirements set forth in the Statement. The Company plans to reflect this
reclassification of the Warrants in its upcoming Quarterly Report on Form 10-Q
for the quarterly period ended March 31, 2021, to be filed with SEC.
The Company does not expect any of the above changes will have any impact on its
cash position and cash held in the trust account.
In addition, the audit report of Marcum LLP included in the Company's Form 8-K
filed on March 4, 2021 should no longer be relied upon.
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