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]. - The trust account held $180,439,940 of the initial public offering proceeds and interest earned as of March 31, 2023[129]. - As of March 31, 2023, the company reported a net income of $1,608,034, with $1,910,298 in interest gained from the trust account[127]. Shareholder Actions - On May 8, 2023, the company held an extraordinary general meeting where 14,402,264 ordinary shares were present, representing approximately 66.33% of total shares outstanding[119]. - Shareholders redeemed 12,626,668 Class A Ordinary Shares for approximately $10.50 per share, totaling a redemption value of approximately $132,616,922[120]. Management and Investment Agreements - The company entered into an Investment Agreement on April 27, 2023, which included a change in management and the issuance of 3,557,813 Class B ordinary shares and 6,160,000 private placement warrants to the investor[116]. - The investor agreed to deposit $300,000 into the trust account to support the initial business combination extension from May 9, 2023, through August 8, 2023[117]. - Following the conversion on May 8, 2023, the company issued 4,237,499 Class A Ordinary Shares to the sponsor, resulting in approximately 47.4% of Class A Ordinary Shares held by the sponsor and investor designees[125]. - The working capital loan was canceled in full on May 8, 2023, in connection with the Investment[131]. Business Combination and Going Concern - The company has until May 8, 2024, to complete a Business Combination, or it will face automatic winding up, dissolution, and liquidation[133]. - 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]. Financial Position and Risks - 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[137]. - The company has $94,114 in cash outside the trust account available for working capital needs as of March 31, 2023[128]. - The company has engaged EarlyBirdCapital as an advisor for the initial business combination, with a fee of 1.75% of the gross proceeds of the IPO payable upon consummation[138]. - A contingent fee of at least $3,500,000 was agreed upon with a third-party consultant for assistance in the Business Combination, but this agreement was terminated as of May 8, 2023[140]. - The company has not engaged in any hedging activities since inception and does not expect to do so in the future[154]. - As of March 31, 2023, the company was not subject to any market or interest rate risk, with IPO proceeds invested in U.S. government treasury obligations[153]. - The financial statements do not include adjustments for potential liquidation after May 8, 2024, indicating uncertainty in asset and liability valuations[134]. - The company has no off-balance sheet arrangements as of March 31, 2023[136]. - The company is assessing the impact of new accounting standards effective after December 15, 2023, on its financial position and operations[147].
Finnovate Acquisition (FNVT) - 2023 Q1 - Quarterly Report