IPO and Financial Proceeds - The company completed its initial public offering on November 8, 2021, selling 17,250,000 public units at $10.00 per unit, generating gross proceeds of $172,500,000[129]. - As of March 31, 2023, the trust account held $180,439,940 from the initial public offering proceeds and interest earned, which is invested in U.S. government securities[129]. - For the three months ended March 31, 2023, the company reported a net income of $1,608,034, primarily from $1,910,298 in interest gained on the trust account[127]. - The company had cash of $94,114 available for working capital needs as of March 31, 2023, with all remaining cash held in the trust account[128]. Business Combination and Shareholder Actions - On May 8, 2023, the company held an extraordinary general meeting where shareholders approved an extension of the business combination deadline to May 8, 2024[119]. - Shareholders redeemed 12,626,668 Class A Ordinary Shares for approximately $132,616,922, at a redemption value of about $10.50 per share[121]. - The company entered into an Investment Agreement on April 27, 2023, which included a change in management and board of directors[118]. - Following the Investment Agreement, the company issued 4,237,499 Class A Ordinary Shares upon the conversion of an equal number of Class B Ordinary Shares[123]. - The Investor agreed to deposit $300,000 into the trust account to support the initial business combination process, with additional monthly contributions of $100,000 as needed[119]. - The company has until May 8, 2024, to complete a Business Combination, or it will face automatic winding up, dissolution, and liquidation[133]. Financial Health and Concerns - As of March 31, 2023, the company had $449,765 of outstanding borrowings under a working capital loan, which was canceled in full on May 8, 2023[131]. - Management has raised substantial doubt about the company's ability to continue as a going concern if a Business Combination is not completed by the deadline[135]. - As of March 31, 2023, the company had no long-term debt or capital lease obligations, and it pays up to $3,000 per month for administrative services[136]. - A contingent fee of at least $3,500,000 was agreed upon with a third-party consultant for assistance in a potential Business Combination, but this agreement was terminated as of May 8, 2023[139]. Advisory and Risk Management - The company has engaged EarlyBirdCapital as an advisor for the initial business combination, with a cash fee of 1.75% of the gross proceeds of the initial public offering payable upon consummation[137]. - The company has not engaged in any hedging activities since inception and does not expect to do so in the future[153]. - As of March 31, 2023, the company was not subject to any market or interest rate risk, with investments in U.S. government treasury obligations or money market funds[152]. - The financial statements do not include adjustments for potential liquidation after May 8, 2024, indicating uncertainty in asset and liability valuations[134]. Regulatory and Economic Factors - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[149]. - Factors such as economic downturns, inflation, and geopolitical instability could adversely affect the company's results of operations and ability to complete a Business Combination[151].
Finnovate Acquisition Corp.(FNVTU) - 2023 Q1 - Quarterly Report