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GCM Grosvenor Responds to SEC Guidance Relating to Warrants
Schedules Release of First Quarter 2021 Financial Results and Investor Conference Call CHICAGO, May 3, 2021 /PRNewswire/ -- GCM Grosvenor, Inc. (NASDAQ: GCMG)
About this update from Gcm Grosvenor Inc.
[{"type":"text","content":"Schedules Release of First Quarter 2021 Financial Results and Investor Conference Call\n\n\nCHICAGO, May 3, 2021 /PRNewswire/ -- GCM Grosvenor, Inc. (NASDAQ: GCMG) (or the \"Company\"), a global alternative asset management solutions provider, today announced in a Current Report on Form 8-K that in response to recent guidance issued by the staff of the Securities and Exchange Commission on April 12, 2021 (the \"SEC Statement\") related to accounting for warrants issued by special purpose acquisition companies (\"SPACs\"), the Company will restate its previously issued consolidated financial statements for the fiscal year ended December 31, 2020 (the \"restatement\") by filing an amended annual report on Form 10-K with the SEC. The restatement will relate to the treatment of the Company's warrants, and it will have no impact on the Company's previously communicated non-GAAP earnings metrics for 2020 or guidance for 2021, including fee related earnings, adjusted EBITDA and adjusted net income. \nConsistent with market practice, the Company was accounting for the warrants as equity on its balance sheet. After reviewing the SEC Statement and consulting with its advisors, the Company intends to restate its 2020 consolidated financial statements such that the warrants are accounted for as liabilities and marked-to-market each reporting period. As a result of the restatement and the increase in its stock price from November 17, 2020 through December 31, 2020, the Company expects to recognize incremental non-operating expense between $10 million and $15 million for fiscal year 2020. The Company anticipates based on the change in its warrant value that the first quarter 2021 non-operating income will be between $10 million and $15 million.\nFirst Quarter Earnings Call Information\nThe Company also announced that it plans to release its results for the first quarter 2021 on Thursday, May 13, 2021.\nManagement will host a webcast and conference call on Thursday, May 13, 2021 at 11:00am ET to discuss the results and provide a business update. The conference call will be available via public webcast from the Public Shareholders section of GCM Grosvenor's website at www.gcmgrosvenor.com/public-shareholders and a replay will be available on the website soon after the call's completion for at least seven (7) days.\nTo register for the call, ple...