NEW YORK – bleuacacia ltd (NASDAQ:BLEU), a special purpose acquisition company, announced its plan to liquidate and dissolve after failing to complete a business combination within the designated timeframe. The company will redeem all outstanding ordinary shares at approximately $11.10 each, effective as of the close of business on November 22, 2024.
The redemption price reflects the removal of a portion of the accrued interest in the trust account to cover taxes and up to $100,000 of dissolution expenses. Following the close of business on the specified date, the public shares will be cancelled and only represent the right to receive the redemption amount.
To facilitate the distribution of funds, bleuacacia will direct the trust account trustee to liquidate the trust account. These funds will be placed in a non-interest bearing account pending disbursement to the shareholders. Record holders must deliver their shares to Continental Stock Transfer & Trust Company, the transfer agent, to receive their share of the proceeds. Beneficial owners of shares held in “street name” do not need to take any action to receive the redemption amount, which is expected to be completed within ten business days post-November 22.
Founder shares holders of the company have agreed to waive their redemption rights. No redemption rights or liquidating distributions will be provided for the company’s warrants and rights, which will be rendered worthless.
bleuacacia also anticipates filing a Form 15 with the SEC to terminate the registration of its securities under the Securities Exchange Act of 1934, expected within ten days after filing a Form 25.
This dissolution comes as bleuacacia, like other blank check companies, was established to effect a merger or similar business combination with one or more businesses. The decision to liquidate follows the company’s inability to meet its business combination objective within the agreed period as stated in its amended and restated memorandum and articles of association.
The information provided is based on a press release statement from bleuacacia ltd.
In other recent news, Bleuacacia Ltd has received a non-compliance notice from Nasdaq’s Listing Qualifications department due to a delay in submitting its quarterly financial report for the period ending June 30, 2024. The company is now required to submit a plan by November 5, 2024, to regain compliance with Nasdaq Listing Rule 5250(c)(1), which pertains to the timely filing of periodic financial reports with the U.S. Securities and Exchange Commission. If Nasdaq accepts this plan, Bleuacacia may be granted an extension of up to 180 calendar days from the original due date of the Form 10-Q, extending the deadline to February 17, 2025. However, it remains uncertain whether Bleuacacia will meet these compliance requirements within this extended timeframe. In the event of failure to do so, Nasdaq may issue a notice of delisting, although Bleuacacia would have the right to appeal this decision before a Nasdaq hearings panel. These recent developments highlight the critical importance of timely financial disclosures for maintaining compliance with stock exchange regulations.
InvestingPro Insights
As bleuacacia ltd (NASDAQ:BLEU) prepares for liquidation, recent InvestingPro data provides additional context to the company’s financial situation. The company’s market capitalization stands at $83.34 million, reflecting its current valuation as it moves towards dissolution.
InvestingPro Tips highlight that BLEU is trading near its 52-week low, which aligns with the company’s decision to liquidate. This tip is particularly relevant given the announcement of the $11.10 per share redemption price. Interestingly, despite the impending liquidation, BLEU has been profitable over the last twelve months, with a basic EPS of $0.06.
The company’s P/E ratio of 193.57 indicates a high earnings multiple, which may have contributed to the challenges in finding a suitable business combination target. Additionally, BLEU does not pay a dividend to shareholders, which is consistent with its SPAC structure and now its plan to return capital through the liquidation process.
For investors seeking a deeper understanding of BLEU’s financial position, InvestingPro offers 6 additional tips that could provide valuable insights into the company’s performance and market standing. These additional tips could be particularly useful for those analyzing the SPAC market and similar investment vehicles.
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