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Broad Capital Acquisition Corp (NASDAQ:BRAC), a special purpose acquisition company, has terminated its previously announced merger agreement with Openmarkets Group Pty Ltd (OMG), an Australian financial services provider. According to InvestingPro data, the company’s financial health indicators show some concerns, with a negative Return on Assets of -2.98% and an Altman Z-Score of -0.6. The definitive termination of the material agreement was disclosed in an 8-K filing with the U.S. Securities and Exchange Commission today.
The Dallas-based blank check company, which is focused on real estate and construction sectors, had entered into the business combination agreement with OMG on January 18, 2023. The stock is currently trading near its 52-week high, with only a 0.86% downside from its peak. On Monday, OMG sent a notice to Broad Capital Acquisition Corp advising that it had exercised its right to terminate the agreement as per Section 11.1(d)(i) of the Merger Agreement.
The termination comes just over a year after the initial agreement was made, signaling a shift in the plans for both companies. The reasons for the termination were not detailed in the filing. Broad Capital Acquisition Corp’s common stock, units, and rights are currently listed on The Nasdaq Stock Market under the ticker symbols BRAC, BRACU, and BRACR, respectively.
Broad Capital Acquisition Corp is an emerging growth company and has not opted to use the extended transition period for complying with any new or revised financial accounting standards.
The company’s CEO, Johann Tse, signed the SEC filing, which fulfills the company’s obligation to report significant corporate events. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with over 30 additional financial metrics and exclusive ProTips. The filing ensures transparency for investors and the market, providing the latest information on corporate developments.
The termination of this agreement marks an end to the potential business combination that had been anticipated by stakeholders of both entities. The implications for Broad Capital Acquisition Corp’s future business strategy and potential new partnerships remain to be seen. This news is based on a press release statement.
In other recent news, Broad Capital Acquisition Corp, based in Dallas, revealed an extension to its business combination deadline. This follows the approval by Broad Capital’s stockholders to amend the company’s charter, allowing for up to twelve one-month extensions, and a decrease in the monthly extension fee. The company deposited $3,036.48 into its trust account, facilitating the extension of the initial business combination deadline from January 2025 to February 2025.
Stockholders also approved an amendment to the company’s trust agreement, which adjusts the terms for the monthly extension fee and updates certain defined terms. This allows the funds in the trust account to be invested in an interest-bearing demand deposit account.
Stockholders holding 1,616,447 shares of common stock exercised their right to redeem their shares for approximately $11.96 per share. This redemption will result in roughly $19.3 million being withdrawn from the trust account. After these redemptions, Broad Capital will have 101,216 shares of common stock outstanding. These are recent developments in the company’s ongoing efforts to extend the business combination deadline.
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