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FutureTech II Acquisition Corp. (NASDAQ:FTII), a special purpose acquisition company with a market capitalization of $59.58 million, has entered into an agreement with Longevity Biomedical Inc. and D. Boral (OTC:BOALY) Capital LLC to restructure the debt related to its Initial Public Offering (IPO). According to InvestingPro analysis, the company is currently trading above its Fair Value, with notable liquidity challenges reflected in its current ratio of 0.25. In a filing with the Securities and Exchange Commission dated Tuesday, February 11, 2025, the company detailed the terms of the new arrangement, which alters the deferred underwriting commission owed to D. Boral Capital, the IPO’s underwriter.
Initially, D. Boral Capital was entitled to a $3,450,000 deferred commission upon the completion of a business combination. Under the new Satisfaction and Discharge of Indebtedness Agreement, dated February 6, 2025, D. Boral will receive $500,000 in cash at the closing of FutureTech’s business combination with Longevity. This restructuring comes as InvestingPro data shows the company’s short-term obligations exceeding its liquid assets, with six additional key insights available to subscribers. Additionally, D. Boral will be issued a promissory note for $1,475,000, to be paid by FutureTech and Longevity by a specified maturity date. Furthermore, 147,500 shares of FutureTech’s common stock, valued at $10.00 per share, will be delivered to D. Boral at closing.
The agreement specifies that the restructuring of the deferred commission is contingent upon the successful completion of the business combination between FutureTech and Longevity. Should the transaction not close, the Discharge Agreement and accompanying promissory note will not take effect.
This financial restructuring is a strategic move by FutureTech as it progresses towards its business combination with Longevity Biomedical. The company’s decision to satisfy and discharge its deferred underwriting commission obligation through a combination of cash, a promissory note, and equity is a notable development for investors and stakeholders.
The information provided in this article is based on a press release statement and SEC filings, which offer a factual account of FutureTech II Acquisition Corp.’s financial arrangements as it advances towards its merger with Longevity Biomedical Inc. The company’s stock currently trades at $11.11, near its 52-week low, with a price-to-earnings ratio of 138.3x. For comprehensive financial analysis and real-time updates, investors can access detailed metrics through InvestingPro.
In other recent news, FutureTech II Acquisition Corp. has been busy with significant developments. The company has finalized a key subscription agreement with investor Yuantian Zhang, which involves the purchase of 1,000,000 shares of FutureTech’s Class A Common Stock. This transaction is part of a larger merger plan with Longevity Biomedical, Inc., contingent upon the successful completion of the merger.
Additionally, FutureTech II has acknowledged errors in the redemption of certain stockholder shares, resulting in overpayments. The company is taking steps to rectify this situation by notifying affected stockholders to return the excess amount.
In another development, FutureTech II has received a notice from Nasdaq’s Hearings Panel granting it a conditional extension to remain listed, provided it files its overdue quarterly report and demonstrates compliance with Nasdaq’s Periodic Filing Rule.
Furthermore, FutureTech II announced it will restate its financial statements for several periods due to accounting errors. The company is actively working to amend and correct these financial statements, underscoring the importance of accurate financial reporting and robust internal controls.
These recent developments illustrate FutureTech II’s ongoing efforts in financial management and compliance, as well as its strategic initiatives towards business expansion.
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