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IX Acquisition Corp., a company specializing in communication services, is facing delisting from The Nasdaq Stock Market LLC as it failed to complete an initial business combination within the required 36-month timeframe post its IPO. The firm received a notification from Nasdaq on Monday, indicating non-compliance with listing rules.
The company's securities will be suspended from trading starting Monday, October 14, 2024, as it does not plan to appeal the decision. This development follows an extraordinary general meeting of shareholders held on Wednesday, where two key proposals were voted upon.
At the meeting, shareholders approved both the Third Extension Amendment Proposal and the Auditor Ratification Proposal. The former likely relates to an amendment concerning the company's operational timeframe, while the latter confirms the appointment of the company's auditors. The exact details of the Third Extension Amendment Proposal were not disclosed.
A significant number of shares, amounting to 1,235,698, were tendered for redemption in connection with the voting at the meeting. The redemption of shares often occurs when a company offers to repurchase shares from shareholders for cash.
The information regarding these events is based on a recent 8-K filing with the U.S. Securities and Exchange Commission (SEC). The filing also includes the cover page interactive data file, which is embedded within the Inline XBRL document.
IX Acquisition Corp. is incorporated in the Cayman Islands with its principal executive offices located in the United Kingdom. The company's Class A ordinary shares and redeemable warrants are listed under the tickers NASDAQ:IXAQ and NASDAQ:IXAQW, respectively.
This news comes at a critical juncture for IX Acquisition Corp., as it navigates the consequences of failing to meet Nasdaq's listing requirements and addresses its shareholders' decisions.
In other recent news, IX Acquisition Corp. has entered into a revised merger agreement with AERKOMM Inc., introducing significant changes to the original terms.
The amendment includes early termination of the lock-up period for IX Acquisition Corp.'s Sponsor, officers, directors, or affiliates and a reduction in the portion of Founder Shares designated as Escrowed Sponsor Shares. AERKOMM Inc. is now required to compensate IX Acquisition Corp. for certain working capital and extension expenses.
The company has also increased the principal amount of a convertible promissory note to $4.5 million for working capital purposes in an agreement with its sponsor, IX Acquisition Sponsor LLC.
Additionally, IX Acquisition Corp. has secured $2.59 million through simple agreements for future equity (SAFEs) ahead of its merger with AERKOMM Inc. These funds are part of a larger plan that requires AERKOMM Inc. to secure a minimum of $15 million through the SAFEs, which will convert to common stock at $11.50 per share upon the merger's completion.
In the midst of these developments, several directors and officers, including Executive Chairman Guy Willner and CEO Karen Bach, have announced their resignations. Noah Aptekar and Eduardo Marini will assume new roles within the company.
IX Acquisition Corp. has also regained compliance with Nasdaq's listing requirements, allowing its securities to continue trading on the Nasdaq Global Market. These are the recent developments surrounding IX Acquisition Corp.
InvestingPro Insights
As IX Acquisition Corp. faces delisting from Nasdaq, InvestingPro data provides additional context to the company's current situation. The company's market capitalization stands at $99.63 million, reflecting its relatively small size in the market. This aligns with the challenges it's facing in completing an initial business combination.
InvestingPro Tips highlight that IX Acquisition Corp. has not been profitable over the last twelve months, with an adjusted operating income of -$2.15 million. This financial strain likely contributed to the company's inability to meet Nasdaq's listing requirements. Additionally, the company's short-term obligations exceed its liquid assets, which may have further complicated its efforts to complete a business combination.
Despite these challenges, the stock is trading near its 52-week high, with a price that is 88.52% of its 52-week peak. This suggests that investors may still see potential in the company, possibly due to the approved Third Extension Amendment Proposal.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips for IX Acquisition Corp., providing deeper insights into the company's financial health and market position.
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