Flag Ship Acquisition Corporation (NASDAQ:FSHP), a company classified under the "blank checks" industry, has entered into a material definitive agreement by issuing an unsecured promissory note to Whale Management Corporation. The note, with a principal amount of up to $1 million, was drawn on Monday for working capital purposes, totaling $294,688.
The note, which carries no interest, has a repayment deadline set for the earlier of December 31, 2025, or the date the company completes its initial business combination. The principal balance can be repaid at any time without prepayment penalties.
However, once funds are drawn, they cannot be re-accessed, even if repaid. The agreement includes standard default provisions that, upon certain events, allow Whale to demand immediate full payment.
Flag Ship Acquisition Corp is an emerging growth company and has elected not to use the extended transition period for complying with new or revised financial accounting standards under Section 13(a) of the Exchange Act.
In other recent news, Flag Ship Acquisition Corp has successfully completed its initial public offering (IPO), raising $69 million. The IPO consisted of 6,900,000 units at $10.00 per unit, including the full exercise of the underwriter's over-allotment option.
In addition to the IPO, Flag Ship Acquisition Corp conducted a private placement to its sponsor, Whale Management Corporation, which raised an additional $2.38 million and cancelled $500,640 in debt.
The funds raised from these ventures, totaling $69 million, have been placed into a trust account at Wilmington Trust, N.A. These funds will be held until Flag Ship Acquisition Corp completes its initial business combination, under certain conditions. The company's audited balance sheet reflects the receipt of these proceeds.
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