Oak Woods Acquisition Corp extends business combination deadline

Published 31/01/2025, 15:34
Oak Woods Acquisition Corp extends business combination deadline

Oak Woods Acquisition Corp (NASDAQ:OAKU), currently valued at $69.13 million and trading near its 52-week high at $11.61, has announced the extension of its deadline to complete an initial business combination until February 28, 2025.

This extension, reported in a recent SEC filing, marks the fifth of up to six one-month extensions that the company is permitted following a shareholder vote on September 26, 2024. According to InvestingPro analysis, the stock appears overvalued at current levels.

The company’s sponsor deposited the required $172,500 into Oak Woods’ trust account by January 28, 2025, fulfilling the conditions for the extension. This deposit maintains the company’s efforts to finalize a business combination by the newly set deadline. With a current ratio of 0.84, the company’s short-term obligations exceed its liquid assets, making such deposits crucial for maintaining operations.

Oak Woods Acquisition Corp, a Cayman Islands-based company with executive offices in Nepean, Ontario, Canada, operates within the healthcare services sector. The company’s securities, including units, Class A ordinary shares, rights, and warrants, are traded on The Nasdaq Stock Market.

The extension allows Oak Woods additional time to secure a business combination, which is now due by the end of February 2025. The information is based on the company’s SEC filing and is intended to provide shareholders and potential investors with the latest developments regarding the company’s timeline for its business combination efforts.

In other recent news, Oak Woods Acquisition Corp has extended its deadline for completing its initial business combination to March 2025. The company has entered into a Second Amended and Restated Merger Agreement, reflecting the terms of their Second Extension Agreement. This extension is a result of a shareholder vote allowing the company to extend the deadline by up to six one-month periods.

In line with this, Oak Woods has terminated a backstop agreement with Fortune Woods Investment Holding Limited and established a Non-Redemption Agreement with the same investor. Under this agreement, Fortune Woods has committed to purchasing 500,000 Class A Ordinary Shares, with the net proceeds intended to offset capital used for shareholder redemptions, fund cash considerations, and cover transaction expenses.

Furthermore, Oak Woods has removed certain limitations on its ability to redeem public shares and proceed with a business combination based on net tangible assets. Class B Ordinary Shares can now be converted into Class A Ordinary Shares on a one-for-one basis before the closing of a business combination.

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