CSLM Acquisition Corp, a special purpose acquisition company currently trading at $12.77 with a market cap of $74.01 million, is set to be delisted from the Nasdaq Stock Market after failing to meet a critical deadline for completing a business combination.
According to InvestingPro analysis, the stock appears overvalued at current levels, with technical indicators suggesting overbought conditions. The company, which went public with its IPO on January 12, 2022, was required to execute a business combination within 36 months of its registration statement’s effectiveness, as per Nasdaq’s Interpretive Material IM-5101-2.
On Wednesday, CSLM received a notice from Nasdaq that its securities would be subject to delisting because it did not fulfill this requirement by the January 12, 2025, deadline. The company has chosen not to appeal the decision, and as a result, trading of its securities on Nasdaq will be suspended at the start of business on January 22, 2025. Subsequently, its securities are expected to begin trading on the over-the-counter market the same day.
In a related move, CSLM Acquisition Corp announced today that it had deposited $30,000 into its trust account on Thursday, January 16, 2025, to extend its deadline to complete a business combination to February 18, 2025. InvestingPro data shows the company maintains healthy liquidity with a current ratio of 1.54, though it trades at a notably high P/E ratio of 208.82. Subscribers can access 4 additional key ProTips and comprehensive financial metrics to better evaluate the company’s position. The company retains the option to extend this period monthly, with each extension costing $30,000, until July 18, 2025.
In other recent news, CSLM Acquisition Corp. has extended its deadline for a business combination to January 18, 2025, by depositing an additional $30,000 into its trust account.
This move allows the company more time to identify and merge with a suitable business entity. CSLM Acquisition Corp. also has the option to further extend this deadline on a monthly basis, at the cost of $30,000 for each additional month, up until July 18, 2025.
In parallel, CSLM Acquisition Corp. has issued a 2nd amended and restated promissory note to its sponsor, Consilium Acquisition Sponsor I, LLC, increasing its borrowing limit to $2,750,000. BDO USA, P.C. has been ratified by shareholders as the independent registered public accounting firm for the fiscal year ending December 31, 2024. In a recent development, approximately 3,339,500 Class A shares have been tendered for redemption, reducing the trust account by approximately $38,596,222.
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