(HedgeCo.Net) The Securities and Exchange Commission has announced that Northern Star Investment Corp. II, a special purpose acquisition company (SPAC), has agreed to settle charges that it made misleading statements in forms filed with the SEC as part of its January 2021 initial public offering (IPO).<\/p>\n\n\n\n
According to the SEC\u2019s order, Northern Star stated in its SEC filings that neither the company, nor anyone acting on its behalf, had initiated any substantive discussions with any potential target companies prior to the IPO. However, the SEC\u2019s order finds that Northern Star had engaged in discussions with a target company and that company\u2019s controlling shareholder in connection with a potential SPAC business combination dating back to December 2020 and continuing for several weeks. Furthermore, according to the SEC\u2019s order, after announcing a merger agreement with the target company, Northern Star did not adequately disclose its interactions with the target company in its Form S-4 filings.<\/p>\n\n\n\n
\u201cNorthern Star\u2019s failure to disclose discussions with its merger target kept investors in the dark about its future plans, information that would have been important in deciding whether to invest in this SPAC,\u201d said Nicholas P. Grippo, Director of the SEC\u2019s Philadelphia Regional Office. \u201cGiven that the purpose of a SPAC is to identify and acquire an operating business, SPACs should be transparent about any pre-IPO discussions with potential acquisition targets.\u201d<\/strong><\/em><\/p>\n\n\n\n The SEC\u2019s order finds that Northern Star violated an antifraud provision of the Securities Act of 1933. Without admitting or denying the SEC\u2019s findings, Northern Star agreed to a cease-and-desist order and to pay a $1.5 million<\/em><\/strong> penalty in the event it closes a merger transaction.<\/p>\n","protected":false},"excerpt":{"rendered":" (HedgeCo.Net) The Securities and Exchange Commission has announced that Northern Star Investment Corp. II, a special purpose acquisition company (SPAC), has agreed to settle charges that it made misleading statements in forms filed with the SEC as part of its […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048,16047],"tags":[],"class_list":["post-87195","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/87195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=87195"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/87195\/revisions"}],"predecessor-version":[{"id":87196,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/87195\/revisions\/87196"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=87195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=87195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=87195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}