WeWork to Restate Due to Accounting Error

WeWork shares fell much more than five% in prolonged buying and selling Wednesday following the place of work-sharing organization disclosed it would restate monetary results furnished to buyers when it general public through a SPAC merger.

The restatement came fewer than two months following WeWork’s $nine billion merger with specific-objective acquisition organization BowX Acquisition, which is led by Sacramento Kings operator Vivek Ranadive.

In a regulatory submitting, WeWork claimed shares issued as part of BowX’s initial general public supplying in August 2020 ended up misclassified as everlasting fairness when they must have been labeled as non permanent fairness because “certain redemption features” ended up not only in WeWork’s regulate.

As a outcome of the error, the organization claimed it had made the decision to “report all general public shares as non permanent,” requiring the restatement of BowX’s results for 2020 and the initial a few quarters of 2021.

WeWork’s shares

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