In a significant corporate update, Abpro Holdings, Inc. (NASDAQ:ABP), a company specializing in biological products, has announced the change of its independent registered public accounting firm. Effective Monday, the company dismissed Marcum LLP and appointed Wolf & Company, P.C. as its new auditor. This decision was approved by the Audit Committee of Abpro Holdings.
Marcum’s previous audits for the fiscal years ending December 31, 2023 and December 31, 2022, did not contain any adverse opinions or disclaimers and were not modified regarding audit scope or accounting principles. However, the reports did raise concerns about the company's ability to continue as a going concern.
The transition to Wolf & Company, P.C. comes after a period during which no disagreements were reported between Abpro Holdings and Marcum on matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedure that would have necessitated a reference in Marcum's audit reports.
The company disclosed material weaknesses in its internal control over financial reporting, which included issues such as failure to file tax returns on time, misuse of trust account funds for operational purposes, and over-accrual of expenses.
In accordance with regulatory requirements, Abpro Holdings has provided Marcum LLP with a copy of this announcement and has received a letter from Marcum, dated the same day, agreeing with the statements made in the report. This letter is attached as an exhibit to the Form 8-K filed with the Securities and Exchange Commission.
The information provided in this article is based on a press release statement from Abpro Holdings, Inc. and gives insight into the company's latest corporate governance actions.
In other recent news, Abpro Holdings has reported significant developments following its merger with Abpro Corporation. The company issued approximately 50 million shares of common stock valued at around $500 million as part of the merger agreement.
Concurrently, Abpro Holdings raised $7.0 million through a private investment in public equity (PIPE) offering, leading to the issuance of 3.4 million shares of common stock and the cancellation of roughly $4.22 million of debt. The company also secured $3 million through a convertible promissory note with YA II PN, LTD.
In other key developments, Abpro Holdings announced the departure of its Chief Financial Officer, Shahraab Ahmad. The company has not yet disclosed a successor to the role or detailed any changes to its financial strategy or operations following Ahmad's resignation.
These recent activities are part of the company's post-merger restructuring and financial arrangements. Abpro Holdings also adopted the 2024 Equity Incentive Plan, reserving 6.24 million shares of common stock for issuance under this plan, and announced leadership changes with Ian Chan now serving as the CEO and Director. These developments were disclosed in filings with the Securities and Exchange Commission.
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