Trump announces trade deal with EU following months of negotiations
FutureTech II Acquisition Corp. (OTC:FTII), a company specializing in biological products with a current market capitalization of $49.33 million, has entered into a material definitive agreement with a group of investors. According to InvestingPro analysis, the company currently shows weak financial health with a concerning current ratio of 0.07, indicating potential liquidity challenges. On Monday, the company signed zero-interest convertible notes, issuing a total principal amount of $1,025,000, which the investors can convert into company shares post-initial business combination.
The convertible notes, dated April 4 and April 7, 2025, involve investors Wuhao Zhang, Yujie Zhou, Wanrong Wang, Shouxiang Lu, Ji Wang, and Gang Yuan. The maturity date for the notes is set for September 30, 2025. With the company's stock currently trading at $10.95, down about 8% year-to-date, this financing move comes at a crucial time. If the principal is not converted or repaid by this date, and the maturity is extended, a five percent annual interest will be applied starting from the maturity date.
The conversion price for the shares will initially be set at $4 for the first thirty days following the issue date. Subsequently, it will be adjusted to the lowest closing price of the company's common stock during the preceding 25 trading days before the conversion date. In case of an event of default, investors can opt for a conversion price based on the lower of the stock's lowest traded price on the day preceding the issue date or 95% of the lowest traded or closing bid price during any trading day when the default remains unaddressed.
Investors have agreed to waive their rights against the company's trust account, even in the event of default, ensuring that they cannot claim from the trust account.
This financial maneuver comes after FutureTech II Acquisition Corp. was suspended from trading on the Nasdaq on February 26, 2025, and received approval to trade over-the-counter with new symbols. InvestingPro data reveals the company is not profitable over the last twelve months, with a net loss of $0.75 per share. Discover more detailed financial analysis and additional insights with an InvestingPro subscription, including exclusive ProTips about the company's financial health and growth prospects.
The information provided is based on a press release statement and the full text of the convertible notes agreement is attached as Exhibit 10.1 to the company's SEC filing.
In other recent news, FutureTech II Acquisition Corp. has entered into a promissory note agreement with its sponsor, FutureTech Partners II LLC, allowing the company to borrow up to $1.5 million. This arrangement is intended to fund the company's initial business combination and operational costs, with repayment in private placement units. FutureTech II has also been involved in restructuring its IPO debt with Longevity Biomedical and D. Boral (OTC:BOALY) Capital LLC, resulting in a revised deferred commission payment structure. This includes a combination of cash, a promissory note, and equity, contingent upon the successful completion of a business combination with Longevity Biomedical. Additionally, FutureTech II has finalized a subscription agreement with investor Yuantian Zhang, involving the purchase of 1,000,000 shares at $5.00 each, as part of its merger strategy with Longevity. The company recently faced potential delisting from Nasdaq but has successfully regained compliance, ensuring continued trading on the stock exchange. These developments highlight FutureTech II's ongoing efforts to secure financial stability and progress towards its merger objectives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.