Financial Overview - The company generated gross proceeds of $60 million from its Initial Public Offering (IPO) by selling 6 million units at $10.00 per unit[20] - An additional 900,000 units were sold due to the underwriters fully exercising their over-allotment option, resulting in total gross proceeds of $9 million[20] - The total amount deposited into a U.S.-based trust account was $70.38 million, equating to $10.20 per public share[22] - The net proceeds from the Initial Public Offering and the sale of private units may be used for general corporate purposes, including maintenance or expansion of operations[34] Business Strategy - The company intends to focus on acquiring businesses in Asia, particularly those with strong management teams and significant growth potential[26] - The management team has extensive experience in mergers and acquisitions, which is expected to aid in identifying attractive acquisition opportunities[25] - The company plans to leverage its management team's expertise to improve operational efficiency and scale revenue through acquisitions[28] Operational Status - The company has not commenced any operations and does not expect to generate operating revenues until after completing its Business Combination[19] - The company has generated no revenues to date and is classified as an early-stage and emerging growth company[17] - The company currently maintains executive offices at a cost of $10,000 per month for office space and administrative services[40] - The company has no full-time employees and relies on its management team to devote necessary time until the initial business combination is completed[41] Regulatory and Market Risks - The company may face additional risks related to potential business combinations with target companies operating in China, including regulatory and enforcement risks[54] - PRC regulations may limit the company's ability to inject capital into its Chinese subsidiaries, affecting profit distribution and exposing it to legal liabilities[62] - Changes in PRC government policies could significantly impact the company's operations and the value of its securities[62] - The company may face increased scrutiny from the Cybersecurity Administration of China, affecting its ability to complete business combinations with certain technology firms[62] Competition and Market Environment - The company may face intense competition from other entities, including private equity groups and leveraged buyout funds, which may limit its ability to acquire larger target businesses[39] - The Asian private equity market saw a record deal value of $296 billion in 2021, representing a 50% increase over 2020[27] Business Combination Details - The company has a maximum of 12 months from the IPO closing to complete its initial business combination, extendable up to 18 months with additional deposits[31] - The initial business combination must involve target businesses with an aggregate fair market value of at least 80% of the assets held in the trust account[33] Growth Company Status - The company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from reporting requirements[47] - The company may remain an emerging growth company until it has total annual gross revenue of at least $1.07 billion or the market value of its common stock held by non-affiliates exceeds $700 million[49] Legal and Compliance - There is no material litigation or governmental proceeding currently pending against the company or its management team[51] - The company may face conflicts of interest due to management's potential involvement with other businesses, which could negatively impact the completion of its initial business combination[59] - There is a risk that the company may not maintain control over a target business post-combination, potentially affecting operational profitability[60] - Managing cross-border operations may lead to negative impacts on the company's results due to inherent costs and difficulties[61] Financial Risk - As of December 31, 2022, the company was not subject to market or interest rate risk, with IPO proceeds invested in U.S. government treasury obligations[415]
AlphaVest Acquisition p(ATMV) - 2022 Q4 - Annual Report