SoFi CEO enters prepaid forward contract on 1.5 million shares
Cartesian Growth Corporation II, a blank check company operating under the legal name 05 Real Estate & Construction, has issued a promissory note to its sponsor, CGC II Sponsor LLC, according to a recent SEC filing. The unsecured note, dated Monday, December 16, 2024, carries a principal amount of $250,000 and is set to mature on the earlier of two potential dates: the day the company completes its initial business combination or the effective date of the company's winding up.
The note is non-interest bearing, and its full principal is due by the maturity date. With a current ratio of 0.09, the company's short-term obligations exceed its liquid assets, potentially explaining this financing move.
Moreover, the sponsor holds an option to convert the outstanding principal into warrants at a rate of one warrant per dollar of principal, rounded up to the nearest whole number. These potential warrants, dubbed "Working Capital Warrants," would share the same terms as those issued during the company's initial public offering held on May 5, 2022.
The note includes standard default provisions, with certain events of default triggering immediate payment of the unpaid principal and any other amounts due. Cartesian Growth Corporation II has elected to issue this note under the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933.
This financial maneuver comes as Cartesian Growth Corporation II, which trades on The Nasdaq Stock Market LLC under the ticker symbols RENEU for units, RENE for Class A ordinary shares, and RENEW for warrants, continues to seek business combination opportunities.
InvestingPro subscribers can access additional insights, including 7 more key investment tips and comprehensive financial analysis tools to evaluate potential business combinations. The company is classified as an emerging growth company and has not elected to use the extended transition period for complying with new or revised financial accounting standards.
The information disclosed is based on a press release statement filed with the U.S. Securities and Exchange Commission.
In other recent news, Cartesian Growth Corporation II has announced multiple significant developments. The company has extended its deadline for completing its initial business combination multiple times, with the latest deadline set for December 5, 2025.
Cartesian Growth Corporation II has also entered into a preliminary agreement with an undisclosed entity in the risk-reduction products sector. If finalized, this business combination could position the company as a market leader, with a projected adjusted EBITDA exceeding $100 million for the year 2025.
In line with these developments, the company has amended its Trust Agreement to allow for interest-bearing bank deposits. This strategic move, part of the company's financial strategy, enables the company's trust account funds to be placed in an interest-bearing bank demand deposit account.
These recent developments reflect Cartesian Growth Corporation II's ongoing efforts to finalize a business deal within the given timeframe.
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