WinVest Acquisition Corp. (NASDAQ:WINV), a special purpose acquisition company with a market capitalization of $41.24 million, announced on Wednesday that it has made a second drawdown of $30,000 from its promissory note with WinVest SPAC LLC. This action is part of the company's efforts to extend the deadline for completing a business combination by one month, moving the termination date from January 17, 2025, to February 17, 2025.
The promissory note, originally issued on December 16, 2024, allows the company to borrow up to $180,000 from its sponsor, WinVest SPAC LLC, to support the company's operations as it seeks a suitable business combination. According to InvestingPro data, the company's current ratio of 0.02 indicates significant liquidity constraints, with short-term obligations exceeding liquid assets. The note is unsecured and non-interest bearing, with the principal due upon the earlier of the successful closing of a business combination or the company's liquidation.
The funds drawn will be deposited into the trust account established during WinVest Acquisition Corp.'s initial public offering. If the company does not achieve a business combination, the note will be repaid from any remaining funds outside of the trust account.
In the event of liquidation or a business combination, the additional funds will be distributed to holders of the company's common stock issued during the IPO or to shareholders who opt for redemption in connection with a business combination.
WinVest Acquisition Corp., which operates under the "blank checks" industry classification, is based in Cambridge, Massachusetts, and is focused on the real estate and construction sector. InvestingPro analysis reveals the company is not currently profitable, with a negative earnings yield and an overall Financial Health Score rated as WEAK. Subscribers to InvestingPro can access additional insights through 6 key ProTips and comprehensive financial metrics. The company's securities, including units, common stock, warrants, and rights, are traded on The Nasdaq Stock Market LLC under the symbols WINVU, WINV, WINVW, and WINVR, respectively.
This financial maneuver is part of WinVest Acquisition Corp.'s strategic efforts to provide additional time to identify a target company for its planned business combination. The information in this article is based on a press release statement from the company.
In other recent news, WinVest Acquisition Corp. has made significant strides in its financial planning. The company recently secured additional funding through a drawdown of $30,000 from an existing promissory note with its sponsor, WinVest SPAC LLC, marking the fifth drawdown against the note with a total principal amount of $180,000. This financial move is intended to support the company until it can merge with another business entity.
These funds were promptly deposited into a trust account, extending the deadline for a business combination from October to November 2024. In the case of liquidation, the trust account funds will be distributed to holders of the company's common stock issued during the initial public offering (IPO) or to those who opt for redemption in connection with the business combination.
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