Keen Vision Acquisition Corp. (NASDAQ:KVAC) has amended its trust agreement to extend the deadline for completing a business combination by nine months, according to a recent 8-K filing with the U.S. Securities and Exchange Commission. The extension allows the company until July 27, 2025, to finalize a merger or acquisition.
The British Virgin Islands-based special purpose acquisition company (SPAC), which focuses on identifying a business combination target in the real estate and construction sector, received shareholder approval for the extension at its annual meeting held on Monday. To facilitate the extension, Keen Vision has agreed to deposit $200,000 into its trust account for each month of the extension, totaling a potential $1.8 million over the nine-month period.
In a related move, Keen Vision issued an unsecured promissory note to its sponsor, KVC Sponsor LLC, for $200,000, coinciding with the initial extension payment. This note, which does not bear interest, is due upon the closing of a business combination and can be converted into units of the company at $10 per unit.
Additionally, shareholders ratified the appointment of ADEPTUS PARTNERS, LLC as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024. The company also filed its second amended and restated memorandum and articles of association with the British Virgin Islands Registry.
At the annual meeting, all five director nominees were elected to the board, and shareholders approved the amendment to the Investment Management Trust Agreement and the second amended and restated memorandum and articles of association.
In connection with the shareholder vote, 8,545,348 shares were tendered for redemption. Keen Vision has made the initial deposit of $200,000 into the trust account, extending the business combination deadline to November 27, 2024.
In other recent news, Keen Vision Acquisition Corporation has adjourned its annual general meeting of shareholders, according to a filing with the Securities and Exchange Commission. The meeting, which was set to discuss proposals outlined in the definitive proxy statement filed on October 7, 2024, was adjourned without conducting any business. A supplement to the definitive proxy statement was issued on the day of the adjournment, providing shareholders with additional time for review.
It's worth noting that shareholders wishing to alter or revoke their previous votes on any of the proposals have a limited time frame to submit their revised votes. The meeting will resume on October 25, 2024, at 10:00 AM Eastern Time.
The company, based in the British Virgin Islands with its principal executive offices in Summit, New Jersey, has its securities listed on The Nasdaq Stock Market LLC.
InvestingPro Insights
Keen Vision Acquisition Corp.'s recent extension of its business combination deadline reflects in its current market position. According to InvestingPro data, the company has a market capitalization of $210.7 million USD, with a price-to-earnings (P/E) ratio of 30.34. This relatively high P/E ratio aligns with one of the InvestingPro Tips, which notes that KVACU is "Trading at a high earnings multiple."
Despite the extended timeline for finding a suitable merger target, KVACU has shown some positive financial indicators. The company is "Profitable over the last twelve months," as highlighted by an InvestingPro Tip. This is supported by the basic and diluted earnings per share (EPS) from continuing operations, both standing at $0.35 USD for the last twelve months as of Q2 2024.
Another relevant InvestingPro Tip mentions that "Liquid assets exceed short term obligations," which could be reassuring for investors considering the extended timeline for the SPAC to complete a business combination. This liquidity position may provide Keen Vision with the financial flexibility needed during its search for a suitable target in the real estate and construction sector.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips for KVACU, providing a deeper understanding of the company's financial health and market position.
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