Oak Woods Acquisition Corp extends merger deadline to March 2025

In a recent SEC filing, Oak Woods Acquisition Corp (OAKUU), a special purpose acquisition company (SPAC) currently trading at $11.44 with a market capitalization of $68.67 million, has announced an extension to its deadline for completing a business combination.

According to InvestingPro analysis, the company's stock is currently trading near its 52-week high, with notably low price volatility. The company has entered into a Second Amended and Restated Merger Agreement, effectively moving the deadline from September 28, 2024, to March 28, 2025. This decision reflects the terms of their Second Extension Agreement.

The updated agreement also notes the termination of a backstop agreement with Fortune Woods Investment Holding Limited from June 2024 and the establishment of a Non-Redemption Agreement with the same investor on December 13, 2024. InvestingPro data reveals that Oak Woods currently trades at a high P/E ratio of 157.29, with financial health indicators showing short-term obligations exceeding liquid assets, as evidenced by a current ratio of 0.84.

Under the Non-Redemption Agreement, Fortune Woods Investment Holding Limited has committed to purchasing 500,000 Class A Ordinary Shares in the open market, provided it is lawful and commercially reasonable to do so. The investor has also agreed not to redeem these shares in connection with the merger and will not vote in favor of it.

Upon completion of the business combination, the net proceeds from the Non-Redemption Agreement are intended to offset capital used for shareholder redemptions, fund cash considerations for certain Huajin shareholders, and cover transaction expenses.

For deeper insights into Oak Woods' financial health and valuation metrics, investors can access additional analysis through InvestingPro, which offers comprehensive financial data and exclusive trading tips. Any remaining funds may be used for other corporate purposes, including satisfying minimum cash requirements post-merger.

The terms of the Non-Redemption Agreement also include a fixed fee payment of $100,000 to Fortune Woods Investment Holding Limited from the Trust Account, contingent upon the business combination's consummation and the investor owning at least 500,000 Open Market Shares.

This strategic move by Oak Woods Acquisition Corp aims to maintain the company's listing qualifications and support its closing and post-closing obligations under the Merger Agreement. The details of these agreements are outlined in exhibits filed with the SEC and form part of this current report.

The filing indicates that Oak Woods Acquisition Corp is a Cayman Islands-based company operating in the healthcare and allied services sector and listed on The Nasdaq Stock Market LLC under various symbols, including OAKUU for its units, OAKU for its Class A Ordinary Shares, OAKUR for its rights, and OAKUW for its warrants.

This article is based on a press release statement.

In other recent news, Oak Woods Acquisition Corp has extended its deadline for completing its initial business combination. This extension results from a shareholder vote, allowing the company to extend the deadline by up to six one-month periods.

As a condition for each extension, a deposit of $172,500 is made into the company's trust account before the expiration of the previous extension period. The company has also removed certain limitations on its ability to redeem public shares and proceed with a business combination based on net tangible assets.

Furthermore, 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. All proposals were passed in a recent shareholder meeting, with 78.37% of the outstanding shares represented.

Lastly, the company reported that 1,492,646 ordinary shares were tendered for redemption, leaving 6,037,979 ordinary shares. These are the latest developments at Oak Woods Acquisition Corp.

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