Spruce Power (NYSE:SPRU) +2.9% pre-market Friday after agreeing to pay $11M to resolve charges by the Securities and Exchange Commission that it misled investors as it prepared to go public.
The SEC said Thursday it had charged Spruce Power (SPRU), previously known as XL Fleet Corp., for claiming to have a 12-month sales pipeline of more than $220M, which purportedly backed its near-term revenue projections of up to $75M and longer-term projections of up to $1.4B.
The SEC alleged the projections, which were featured in public filings ahead of its 2020 SPAC merger, were based almost entirely on speculative opportunities, including sales to potential customers with whom the company had little or no contact or to whom it could not legally sell its products.
Spruce Power (SPRU) did not admit or deny the findings, but consented to a cease-and-desist order and the $11M civil penalty.