Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or
Standard; Transfer of Listing.
As previously disclosed in the Notification of Late Filing on Form 12b-25 filed
on May 17, 2021 by Levere Holdings Corp. (the "Company"), on April 12, 2021, the
Staff of the U.S. Securities and Exchange Commission (the "SEC") issued the
"Staff Statement on Accounting and Reporting Considerations for Warrants Issued
by Special Purpose Acquisition Companies" (the "SEC Statement"), which clarified
guidance for all SPAC-related companies regarding the accounting and reporting
for their warrants. Following review of the SEC Statement, the Company
reevaluated the accounting treatment of its public and private placement
warrants as equity, and concluded that, based on the SEC Statement, the public
and private placement warrants should be, and should previously have been,
classified as a liability measured at fair value, with non-cash fair value
adjustments recorded in earnings at each reporting period.
The Company is currently determining the extent of the SEC Statement's impact on
its financial statements, including the financial statements as of and for the
quarter ended March 31, 2021 to be included in its Quarterly Report on Form 10-Q
for the quarterly period ended March 31, 2021 (the "Q1 2021 Form 10-Q"). The
Company is in the process of revising certain items of the Company's previously
issued audited balance sheet dated as of March 23, 2021. The Company is also
evaluating the impact of this revision on its internal control over financial
reporting related to accounting for its public and private placement warrants.
On May 28, 2021, the Company received a notice (the "Notice") from the Listing
Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") stating that
the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1) (the
"Rule") because it has not timely filed the Q1 2021 Form 10-Q with the SEC. The
Rule requires listed companies to timely file all required periodic financial
reports with the SEC. The Notice has no immediate effect on the listing or
trading of the Company's securities. However, if the Company fails to timely
regain compliance with the Rule, the Company's securities will be subject to
delisting from the Nasdaq Capital Market.
Under Nasdaq rules, the Company has 60 calendar days from the date of the
Notice, or until July 27, 2021, to submit a plan to regain compliance with the
Rule. If Nasdaq accepts the Company's plan, then Nasdaq may grant an exception
of up to 180 calendar days from the due date of the Form 10-Q, or until
November 15, 2021, to regain compliance. However, there can be no assurance that
Nasdaq will accept the Company's plan to regain compliance or that the Company
will be able to regain compliance within any extension period granted by Nasdaq.
If Nasdaq does not accept the Company's plan, then the Company will have the
opportunity to appeal that decision to a Nasdaq hearings panel.
On June 4, 2021, the Company issued a press release announcing its receipt of
the Notice. A copy of the press release is attached hereto as Exhibit 99.1 and
is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. Description of Exhibits
99.1 Press Release, dated June 4, 2021.
Cautionary Statements Regarding Forward-Looking Statements
This Current Report includes "forward-looking statements" within the meaning of
the safe harbor provisions of the United States Private Securities Litigation
Reform Act of 1995. Certain of these forward-looking statements can be
identified by the use of words such as "believes," "expects," "intends,"
"plans," "estimates," "assumes," "may," "should," "will," "seeks," or other
similar expressions. Such statements may include, but are not limited to,
statements regarding the Company's review of its historical financial statements
and the status of the Q1 2021 Form 10-Q. These statements are based on current
expectations as of the date of this Current Report and involve a number of risks
and uncertainties that may cause actual results to differ significantly. The
Company does not assume any obligation to update or revise any such
forward-looking statements, whether as of the result of new developments or
otherwise. Readers are cautioned not to put undue reliance on forward-looking
statements.
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