Bukit Jalil extends merger deadline, issues $100K note

KUALA LUMPUR - Bukit Jalil Global Acquisition 1 Ltd. (NASDAQ:BUJA), a blank check company with a current market capitalization of $55.34 million, has announced an extension to its deadline for completing a business combination.

According to InvestingPro data, the company's stock trades at $11.19, with relatively low price volatility. The company disclosed in a recent 8-K filing with the Securities and Exchange Commission that it has deposited $100,000 into its trust account to extend the merger deadline by one month, moving the date from December 30, 2024, to January 30, 2025.

This extension, reported on Thursday, is the seventh one-month extension that the company has exercised, with the potential for up to five more based on its charter provisions. Bukit Jalil Global Acquisition, which is structured as a special purpose acquisition company (SPAC), is in the process of seeking a business combination and has until June 30, 2025, to complete a merger or acquisition.

The $100,000 deposit, referred to as the Monthly Extension Fee, was funded on Wednesday and is part of a broader agreement that allows the sponsor, Bukit Jalil Global Investment Ltd., to prolong the SPAC's timeline for finding a merger target. InvestingPro analysis reveals the company's current financial health score is rated as 'FAIR', with several key metrics suggesting careful monitoring is warranted.

Get access to over 30 additional financial metrics and exclusive ProTips with an InvestingPro subscription. In return for the extension fee, Bukit Jalil Global Acquisition issued a promissory note to the sponsor for the same amount.

The note carries no interest and is due either upon the consummation of the company's business combination or at the end of the company's term. The sponsor also retains the option to convert the note into private units of the company, which include ordinary shares and warrants, under certain conditions.

The issuance of the note and the potential conversion into equity are exempt from registration under the Securities Act of 1933, according to the filing. The company's securities, including units, ordinary shares, warrants, and rights, are listed on The Nasdaq Stock Market.

The move provides additional time for Bukit Jalil Global Acquisition to identify and complete a merger with a target company, offering a brief insight into the SPAC's timeline and financial maneuvers as it navigates the complex process of a business combination. The company currently trades at a P/E ratio of 44.25, with a current ratio of 0.19, indicating potential liquidity considerations that investors should monitor.

This report is based on the company's statements in its SEC filing.

In other recent news, Bukit Jalil Global Acquisition 1 Ltd. has announced a series of extensions to its initial business combination deadline. The latest extension, facilitated by a $100,000 deposit from the company's sponsor, Bukit Jalil Global Investment Ltd., has set the new deadline for December 30, 2024. Alongside the extension, the company issued an unsecured promissory note to its sponsor, carrying no interest and offering the option to convert the note into private units of the company.

The private units, each consisting of one ordinary share, half of one warrant, and one right to receive one-tenth of an ordinary share upon completion of the business combination, underline the company's strategic efforts to finalize a business combination within the extended timeframe. In addition to these measures, the company has also made amendments to its memorandum and articles of association, extending the deadline for completing a business combination to June 30, 2025.

These recent developments are part of Bukit Jalil Global Acquisition 1 Ltd.'s ongoing efforts to complete its business combination plans, as disclosed in its filings with the Securities and Exchange Commission. It's important to note that these financial maneuvers are exempt from registration under the Securities Act of 1933, as per Section 4(a)(2).

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