On Monday, Healthcare AI Acquisition Corp. (NASDAQ:HAIA) issued an unsecured promissory note for $100,000 to Leading Group Limited, with whom it has a pending business combination agreement dated August 15, 2024. The note, which carries no interest, is set to mature upon the closure of the business combination.
Should the company liquidate, the note will be repaid in cash. Alternatively, upon completion of the business combination, the note may be repaid in cash or converted into Class A ordinary shares at $10.00 per share, at the lender's discretion.
In a general annual meeting on Tuesday, shareholders approved an extension of the deadline to complete the business combination. Originally set for December 14, 2024, the new deadline can now be extended monthly until May 14, 2025. For each extension, the company will deposit the lesser of $15,000 or $0.033 per non-redeemed public share into its trust account.
In relation to the shareholders' meeting, approximately 192,664 shares were tendered for redemption, equating to roughly $2.24 million being withdrawn from the company's trust account.
After these redemptions, Healthcare AI Acquisition Corp. will have about $4.63 million left in the trust account and 5,789,786 Class A Shares outstanding, alongside a single Class B Share.
InvestingPro Insights
As Healthcare AI Acquisition Corp. (NASDAQ:HAIA) navigates its business combination process, InvestingPro data provides additional context to the company's financial position. With a market capitalization of $68.38 million, HAIA is trading at a high P/E ratio of 84.01, suggesting investors are pricing in significant growth expectations. This aligns with the company's status as a SPAC seeking a merger target in the healthcare AI sector.
InvestingPro Tips highlight that HAIA's stock generally trades with low price volatility, which could be attractive for investors seeking stability during the pre-merger phase. Additionally, the stock is trading near its 52-week high, with its current price at 82.79% of the peak, potentially indicating market optimism about the company's prospects.
It's worth noting that HAIA does not pay a dividend, which is typical for SPACs focusing on growth through acquisitions. Investors interested in a deeper analysis can find 7 additional InvestingPro Tips for HAIA, offering a more comprehensive view of the company's financial health and market position.
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