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Cartesian Growth Corporation II (NASDAQ:RENEU), a special purpose acquisition company with a market capitalization of $153 million, has announced a third extension for its deadline to complete an initial business combination. The extension moves the deadline to March 5, 2025, as the company seeks to finalize a merger or acquisition deal. The stock is currently trading near its 52-week high of $12.00, suggesting market optimism about potential deal prospects.
The extension, dated January 31, 2025, involves the company drawing $150,000 from an existing unsecured promissory note with its sponsor, CGC II Sponsor LLC. The total available funds from the note amount to $2.4 million, established on November 6, 2024. This drawdown is part of a series of twelve possible one-month extensions provided for in the company’s amended and restated memorandum and articles of association. According to InvestingPro data, the company’s current ratio of 0.09 indicates tight liquidity, making these funding arrangements crucial.
The funds drawn from the note will be deposited into Cartesian’s trust account, which was created during the company’s initial public offering. This financial move is intended to give Cartesian additional time to secure a business combination that aligns with its strategic goals. InvestingPro analysis reveals several additional insights about the company’s financial position and market performance. Get access to 8 more exclusive ProTips and comprehensive financial metrics with an InvestingPro subscription.
Cartesian Growth Corporation II is a blank check company, also known as a SPAC (Special Purpose Acquisition Company), which raises capital through public offerings with the purpose of acquiring existing companies. SPACs have been an increasingly popular vehicle for bringing companies public without going through the traditional initial public offering process.
The information is based on a recent SEC filing by Cartesian Growth Corporation II.
In other recent news, Cartesian Growth Corporation II has been active in financial maneuvers and strategic extensions. The company issued a $250,000 promissory note to its sponsor, CGC II Sponsor LLC, as revealed in a recent SEC filing. This note, non-interest bearing and due by its maturity date, offers the sponsor an option to convert the principal into warrants at a rate of one warrant per dollar of principal.
In addition to this, Cartesian has extended its deadline for completing an initial business combination, as approved by the company’s board. This extension was facilitated by a drawdown of $150,000 from an existing unsecured promissory note with the company’s sponsor. This move implies that the company is taking more time to find a suitable merger target.
Furthermore, the company’s shareholders approved an amendment to the charter, allowing for an extension from the original business combination deadline to a new deadline. The sponsor has agreed to deposit into the trust account $150,000 for the first month, with potential additional deposits of up to $2.4 million for subsequent monthly extensions. These are the recent developments within Cartesian Growth Corporation II.
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