Denver-based Spruce Power Holding Corp., which converts commercial trucks into hybrid vehicles, exaggerated revenue projections and misled investors as part of its public offering nearly three years ago, according toSpruce Power, previously known as XL Fleet before changing its name last November, went public in December 2020 through a merger with a special purpose acquisition company or SPAC.
“It goes without saying that investors commonly rely on revenue projections when deciding how and where to invest, and that’s perhaps especially true for investment decisions involving early-stage companies in the SPAC market,” Mark Cave, associate director of the division of enforcement with the SEC said in a statement.
“Supply-chain issues and wide-scale shortages of key materials, especially microchips, continue to impact the global automotive industry, significantly interrupting the ability of fleet customers to secure new vehicles on which our electrified drive systems are installed,”