In a recent development, RF Acquisition Corp., a blank check company, announced an amendment to its existing merger agreement with GCL Global Holdings Ltd, extending the deadline to complete their business combination to March 28, 2024. This move comes as part of the company's ongoing efforts to finalize the merger process.
The amendment, filed with the SEC on Thursday, outlines that GCL Global will cover up to $500,000 in extension fees and other related expenses incurred by RF Acquisition Corp. since September 28, 2024. However, these costs will be deducted from the Maximum Allowable SPAC Transaction Expenses as defined in the merger agreement.
RF Acquisition Corp., based in Singapore, is primarily involved in the real estate and construction sectors. The extension of the merger deadline provides additional time for the completion of the business combination, which is subject to customary closing conditions including regulatory approvals and shareholder consent.
The companies have been working towards a merger since the initial agreement was announced in late 2023, with subsequent amendments made to facilitate the process. The latest amendment signifies a continued commitment to the merger, with both parties adjusting terms to ensure its progression.
This strategic move is expected to have implications for shareholders and the market as the companies work towards finalizing the merger. The business combination is anticipated to create a new entity with enhanced market presence and growth potential.
Investors and shareholders are advised to read the proxy statement/prospectus and other relevant documents filed with the SEC for more details about the proposed transaction. The information contained in this article is based on a press release statement.
In other recent news, RF Acquisition Corp. announced that its stockholders have approved an extension for completing a business combination. The deadline has been moved from September 2024 to March 2025, following a special meeting where stockholders voted in favor of the amendment.
The amendment stipulates that RF Acquisition Corp. will deposit $0.03 into the trust account for each share of Class A common stock not redeemed in connection with the extension. The vote saw 4,960,624 votes for the extension, 164,761 against, and no abstentions.
Following the approval, shareholders elected to redeem 1,170,280 shares of Class A common stock at approximately $11.23 per share, totaling approximately $13.1 million. This leaves the trust account with an approximate balance of $17.7 million. These recent developments provide RF Acquisition Corp. with additional time to identify a suitable business combination partner and complete the transaction.
InvestingPro Insights
As RF Acquisition Corp. (RFACU) navigates its merger process with GCL Global Holdings Ltd, InvestingPro data provides additional context for investors. The company's market cap stands at $65.41 million, reflecting its current valuation as a blank check company. Interestingly, RFACU is trading near its 52-week high, with its price at 94.32% of the peak, suggesting investor optimism about the pending merger.
InvestingPro Tips highlight that management has been aggressively buying back shares, which could be interpreted as a sign of confidence in the company's future prospects. Additionally, the stock generally trades with low price volatility, which may be appealing to risk-averse investors during this transitional period.
However, it is important to note that RFACU is not currently profitable, with a negative operating income of $2.05 million over the last twelve months as of Q2 2024. This aligns with the typical profile of a SPAC before completing its business combination. Investors should consider these factors alongside the potential growth opportunities that may arise from the merger with GCL Global Holdings Ltd.
For a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide valuable insights into RFACU's financial position and market performance.
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