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HAINING, China - Broadway Technology Inc, a Chinese PET cup manufacturer, has entered into a definitive merger agreement with Quartzsea Acquisition Corporation, a special purpose acquisition company listed on Nasdaq. Quartzsea, currently trading at $10.02 with a market capitalization of $114.1 million according to InvestingPro, has seen its shares trade near both 52-week highs and lows recently. The transaction, once finalized, will result in Broadway Technology’s subsidiary Gaokai becoming a wholly owned entity under Quartzsea’s subsidiary Cuisine Universal Packaging Solution. The combined company is expected to trade on Nasdaq under the ticker symbol CUPS.
The merger, unanimously approved by both companies’ boards, aims to leverage Broadway Technology’s expertise in producing high-quality PET cups and lids for various markets, including aviation and beverage industries. Gaokai’s operations are based in Zhejiang Province, where it benefits from proximity to raw material sources and boasts advanced manufacturing capabilities. InvestingPro data reveals that Quartzsea currently faces some financial challenges, with a current ratio of 0.65 indicating short-term obligations exceed liquid assets.
As part of the deal, Gaokai shareholders will receive ordinary shares of Cuisine Universal. Certain shareholder shares will be subject to a 180-day lock-up period post-transaction closure, with exceptions. The merger’s completion is contingent upon regulatory approvals, shareholder consent from both companies, SEC declaration of an effective registration statement, and Nasdaq’s listing approval for the combined entity.
Legal counsel for the transaction includes Celine & Partners, PLLC, and Ogier Global (Cayman) Limited for Quartzsea, with Pryor Cashman LLP and Harney Westwood & Riegels among those serving Gaokai. Chain Stone Capital Limited is the financial advisor to Gaokai.
This merger is part of a broader trend of business combinations facilitated by SPACs, which provide a pathway for private companies to become publicly traded without undergoing a traditional initial public offering.
The information in this article is based on a press release statement. Further details of the transaction will be available in Quartzsea’s SEC filings, which will be accessible on the SEC’s website. The completion of this merger is subject to customary closing conditions and approvals. InvestingPro subscribers have access to additional insights, including 7 more exclusive ProTips about Quartzsea’s financial health and market position.
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