Aimei Health Technology Co., Ltd. (NASDAQ:AFJK), currently trading at its 52-week high of $10.85 with a market capitalization of $98 million, has announced an extension for the period to complete its initial business combination.
The company disclosed on Monday that it has deposited an additional $227,700 into its trust account for public shareholders, which extends the deadline by one month to February 6, 2025. According to InvestingPro analysis, the stock has demonstrated low price volatility while delivering a 6.9% return over the past year.
This move represents the second of up to twelve possible extensions as stipulated by the company's Amended and Restated Articles of Association. Each public shareholder is entitled to an additional $0.033 per share due to this extension.
Concurrently, Aimei Health Technology issued an unsecured promissory note for the same amount to its sponsor, Aimei Health Ltd, and United Hydrogen Group Inc. The note, dated January 13, 2025, is equally funded by both payees, with each contributing $113,850 to support the extension payment.
The promissory note carries no interest, and its principal is payable upon the completion of a business combination with United Hydrogen. The payees reserve the right to convert the note into private units of the company at $10.00 per unit, which consists of one ordinary share and one right to receive one-fifth of an ordinary share.
InvestingPro data reveals that while the company maintains a GREAT financial health score, its current ratio of 0.54 indicates potential liquidity challenges, with short-term obligations exceeding liquid assets. Subscribers can access 6 additional key ProTips and comprehensive financial metrics for deeper analysis. This conversion can occur immediately before the closing of the business combination, provided the company is given at least two business days' notice.
The extension and issuance of the promissory note are part of Aimei Health Technology's ongoing efforts to finalize its business combination with United Hydrogen. Details of the promissory note can be found in Exhibit 10.1 of the company's recent SEC filing, which provides the full terms and conditions.
This report is based on statements from a press release and the company's recent 8-K filing with the SEC.
In other recent news, Aimei Health Technology Co., Ltd witnessed significant developments during its extraordinary general meeting. Shareholders voted against a proposed amendment to the company's trust agreement.
The amendment intended to adjust the deposit amount for extending the deadline to complete an initial business combination, but it failed to gain approval with 51.81% of votes against it. Moreover, the adjournment proposal, which sought to allow the postponement of the meeting for additional proxies, also did not pass, receiving 49.36% of votes against it.
These decisions took place amidst heightened regulatory scrutiny and investor caution in the SPAC sector, where Aimei Health operates. The company's current ratio of 0.54, as reported by InvestingPro, indicates a liquidity concern as short-term obligations exceed liquid assets.
The outcomes of these votes could influence Aimei Health's future strategic options as it continues to seek a business combination partner within a set timeframe. The SEC filing detailing these results provides investors with a clear understanding of Aimei Health's shareholder stance on its financial strategy and governance. These are the recent developments in the company's operations.
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