Alchemy Investments Acquisition Corp 1 (NASDAQ:ALCY), a special purpose acquisition company, announced today that its shareholders have approved an extension of the deadline to complete a business combination. The amendment to the company's Articles of Association, passed during the annual general meeting on Sunday, allows for an extension until February 9, 2025, with the possibility of further monthly extensions until September 9, 2025.
The shareholders' decision enables the company to place additional funds into a trust account to support the extension, with $90,000 for the initial three months followed by monthly deposits of $30,000 thereafter. The amendment was approved by a two-thirds majority of the votes cast at the meeting.
In addition to the extension, shareholders ratified the appointment of Marcum LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024.
Following the meeting, Alchemy Investments exercised the extension option, moving the business combination completion date from November 9, 2024, to February 9, 2025, and committed to depositing $90,000 into the trust account by November 9, 2024.
As a result of the shareholder vote, 10,438,037 Class A shares were tendered for redemption, which will approximately withdraw $114.36 million from the trust account, equating to roughly $10.95 per share. This redemption leaves the company with approximately $11.63 million remaining in its trust account.
The company, previously named VAM Acquisition Corp., specializes in blank check investments and is incorporated in the Cayman Islands. Its strategic focus lies within the real estate and construction sector under the organization name 05 Real Estate & Construction.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Alchemy Investments Acquisition Corp 1's financial position. The company's market capitalization stands at $163.18 million, with a P/E ratio of 29.83. This valuation metric aligns with an InvestingPro Tip suggesting that the stock is "trading at a low P/E ratio relative to near-term earnings growth," which could be of interest to value-oriented investors considering the company's SPAC status.
Another relevant InvestingPro Tip indicates that the stock "generally trades with low price volatility." This characteristic may appeal to risk-averse investors, particularly in the context of the company's recent extension of its business combination deadline.
It's worth noting that Alchemy Investments Acquisition Corp 1 is currently trading at 82.63% of its 52-week high, with a previous closing price of $10.99. This information, coupled with the company's recent shareholder actions, provides a more comprehensive picture of its current market position.
InvestingPro offers 5 additional tips for ALCY, which could provide further insights into the company's financial health and market performance. Investors interested in a deeper analysis may find these additional tips valuable in assessing the potential of this SPAC investment.
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