Dallas-based Broad Capital Acquisition Corp (NASDAQ:BRAC), a special purpose acquisition company with a market capitalization of $55.47 million, has announced an extension of its deadline to complete a business combination.
According to InvestingPro analysis, the company currently shows a WEAK financial health score, which underscores the importance of its upcoming strategic decisions. The company reported on Friday that it has deposited $3,036.48 into its trust account, enabling the extension of its initial business combination deadline from January 13, 2025, to February 13, 2025.
This move follows the approval by Broad Capital's stockholders during a special meeting held on Monday, January 13, 2025, to amend the company's charter. The amendment allows for up to twelve one-month extensions, extending the deadline from the original date of January 13, 2025, to January 13, 2026. The amendment also includes a decrease in the monthly extension fee from the previous $60,000 to a lesser amount based on the number of non-redeemed public shares.
At the same meeting, stockholders approved the amendment to the company's trust agreement, which adjusts the terms for the monthly extension fee and updates certain defined terms. This amendment also allows the funds in the trust account to be invested in an interest-bearing demand deposit account.
The filing also disclosed that stockholders holding 1,616,447 shares of common stock exercised their right to redeem their shares for approximately $11.96 per share, slightly above the current trading price of $11.65. This redemption will result in approximately $19.3 million being withdrawn from the trust account.
After these redemptions, Broad Capital will have 101,216 shares of common stock outstanding. InvestingPro subscribers can access additional key metrics, including detailed financial health indicators and exclusive ProTips that provide deeper insights into the company's performance.
Broad Capital's efforts to extend the business combination deadline reflect a common practice among SPACs to provide additional time to find a suitable merger or acquisition target. With a concerning current ratio of 0.01 and short-term obligations exceeding liquid assets, as revealed by InvestingPro data, the company faces important financial considerations in its search for a suitable target.
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