SPAC’s Restatement Is First Prompted by SEC’s Accounting Warning

An SEC warning about SPAC accounting errors has not only chilled the red-hot market but triggered the first of what could be a flood of financial restatements by the popular blank-check companies.

Northern Genesis Acquisition Corp., a special purpose acquisition company that plans to take a Canadian electric bus maker public, announced Tuesday that it would have to redo its last annual financial statement to comply with a major accounting shift forced by Wall Street’s top regulator.

The Kansas City-based SPAC could be the first of many blank-check companies forced to go through the onerous process of ...