Business & Investment

WeWork’s share price has fallen 5% as the company plans to make financial adjustments and acknowledges significant weaknesses.

WeWork announced on Wednesday that it would revise the financial information provided during the initial public offering process, admitting that it had significant weaknesses in managing its financial reporting, and dropped its shares by more than 5% in after-hours trading. ..

We work
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-2.65%
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The coworking space is rented out, but due to the submission to the Securities and Exchange Commission, which was made public through a special acquisition company (SPAC), some shares could not be properly accounted for, so reprocessed financial information was submitted. It became clear that it was necessary to do so. , Less than 2 months ago.

After the SEC clarified SPAC rules, including well-known SPAC targets such as Virgin Galactic Holdings Inc, many companies published through SPAC were forced to paraphrase their financial information in a similar manner.
SPCE,
-7.13%

And Draft Kings Inc.
DKNG,
-9.58%

reference: Revised finances after Virgin Galactic, DraftKings, SPAC SEC guidance

WeWork was released long after these companies, and after they revised their finances. BowX Acquisition Corp, an SPAC released in August 2020. After merging with, we started trading as WeWork in October. Until the merger.

“We used to classify some of our public offerings as permanent shares,” WeWork explained in the filing. “As a result of further valuation, we require that public shares be classified as temporary shares under ASC 480-10-S99, with certain redemption features not under our control. I have determined that it is included. “

WeWork also revealed that due to a misclassification of shares, management has determined that there are significant weaknesses in overseeing financial reporting. Learn more about plans to address future filing weaknesses.

WeWork’s share price fell more than 5% in after-hours trading after disclosure, closing 2.7% to $ 8.46. Shares have been trading between $ 8.02 and $ 14.97 since the merger, with a closing price of around $ 6.2 billion on Wednesday, according to FactSet.

WeWork’s share price has fallen 5% as the company plans to make financial adjustments and acknowledges significant weaknesses.

http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-77B9-7C5CE27B27B6%7D&siteid=rss&rss=1 WeWork’s share price has fallen 5% as the company plans to make financial adjustments and acknowledges significant weaknesses.

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