Mountain Crest Acquisition Corp. V secures $500,000 promissory note

Mountain Crest Acquisition (NASDAQ:PLBY) Corp. V (NASDAQ:MCAG), a special purpose acquisition company with a market capitalization of $32.36 million and current stock price of $11.15, announced on Monday that it has entered into an unsecured promissory note with its sponsor, Mountain Crest Global Holdings LLC. The note, dated April 25, 2025, provides Mountain Crest Acquisition Corp. V with up to $500,000 in borrowing capacity. According to InvestingPro analysis, the company’s current ratio of 0.1 indicates potential liquidity challenges, with short-term obligations exceeding liquid assets.

The funds from the note are designated for working capital purposes as the company seeks to complete an initial business combination. According to the terms of the agreement, the borrowed amount will become due on the earlier of two events: the successful completion of a business combination or the date the company liquidates if no such transaction occurs. Notably, the note does not accrue interest.

In the event that Mountain Crest Acquisition Corp. V does not finalize a business combination, repayment of the note will come from any remaining funds outside of the company’s trust account. The note represents a direct financial obligation for the registrant, as detailed in the 8-K filing with the Securities and Exchange Commission. InvestingPro data reveals the company’s challenging financial position, with a return on assets of -10.79% and no profitability over the last twelve months. Subscribers can access 7 additional ProTips and comprehensive financial metrics to better evaluate MCAG’s investment potential.

This recent financial arrangement underscores the ongoing efforts of Mountain Crest Acquisition Corp. V to secure the necessary capital to advance its business objectives. The company, incorporated in Delaware and headquartered in New York, specializes in surgical and medical instruments and apparatus.

The full text of the note has been filed with the SEC and is incorporated by reference into the 8-K filing. This report is purely informational and does not constitute an offer to sell or a solicitation of an offer to buy securities, nor does it involve the solicitation of a proxy, consent, or authorization regarding any securities or in respect of any business combination.

The information reported is based on a press release statement from Mountain Crest Acquisition Corp. V. While the stock is currently trading near its 52-week high, InvestingPro analysis suggests the company may be overvalued at current levels. Investors seeking detailed valuation metrics and comprehensive analysis can explore InvestingPro’s advanced financial tools and expert insights.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.