Atlantic Coastal Acquisition Corp. II (NASDAQ:ACAB), a special purpose acquisition company, announced today that it has entered into an amendment to its business combination agreement with Abpro Corporation.
The amendment, dated September 4, 2024, stipulates that Atlantic Coastal's sponsor, Atlantic Coastal Management II LLC, will receive 600,601 shares of Series A common stock at the closing of the transaction. This issuance is in place of the $2 million in unpaid SPAC expenses owed to the sponsor by Atlantic Coastal.
This equity issuance will not be registered under the Securities Act of 1933, as amended, relying on the exemption from registration provided by Section 4(a)(2) of the Act and/or Regulation D promulgated thereunder. The shares will be issued to the sponsor as compensation for advances made by the sponsor to Atlantic Coastal.
In addition, Atlantic Coastal has filed a Registration Statement on Form S-4 with the SEC, which includes a Proxy/Information Statement for ACAB's stockholders regarding the proposed transactions, as well as a prospectus for the securities to be issued. The definitive proxy statement will be mailed to stockholders upon the Registration Statement being declared effective by the SEC.
The announcement is based on a press release statement.
In other recent news, Atlantic Coastal Acquisition Corp. II has been in the spotlight due to pivotal developments. The company has entered into significant agreements with Abpro Bio International Inc. and Celltrion, Inc. These agreements are geared towards a planned business combination with Abpro Corporation, a biological products firm.
In terms of financial specifics, Abpro Bio will purchase 622,467 shares of Atlantic Coastal's Series A common stock, and Celltrion has agreed to buy 500,000 shares of the same stock.
Atlantic Coastal has also extended its business combination deadline to September 19, 2024, allowing more time to finalize its merger activities. This extension was filed with the Securities and Exchange Commission, under the company's Amended and Restated Certificate of Incorporation.
However, the company has received a notice from the Nasdaq Stock Market for non-compliance with the exchange's continued listing standards, specifically failing to maintain the minimum requirement of 400 holders of record and/or beneficial owners for its primary equity securities. Atlantic Coastal now has a 45-day window to submit a plan to regain compliance. If accepted, the company could be granted an additional 180 days to meet the minimum holders requirement.
These are some of the recent developments in the company's ongoing operations.
InvestingPro Insights
As Atlantic Coastal Acquisition Corp. II navigates its business combination with Abpro Corporation, investors are closely monitoring the financial health and market performance of Abpro. According to InvestingPro data, Abpro Corporation currently boasts a market capitalization of $147.12 million, indicating a moderate size within its sector. The company's P/E ratio, a key metric for valuation, stands at an adjusted 11.23 on a last twelve months basis as of Q2 2024, suggesting a potentially attractive valuation relative to earnings.
InvestingPro Tips highlight that Abpro's revenue growth in the last twelve months as of Q2 2024 was 2.71%, reflecting a steady but modest increase in sales. However, it's important to note that the quarterly revenue growth for Q2 2024 showed a decline of -4.03%, indicating potential short-term challenges or seasonal fluctuations in the company's revenue stream.
Another critical metric for investors is the gross profit margin, which for Abpro was 30.0% in the last twelve months as of Q2 2024. This figure suggests that the company is maintaining a healthy difference between the cost of goods sold and net sales, which is a positive sign for operational efficiency.
For those interested in dividend income, Abpro offered a dividend yield of 1.13% as of the last recorded date in 2024, coupled with a return on assets of 12.66% for the same period, indicating a strong ability to generate profits from its assets.
Investors looking for deeper insights can find additional InvestingPro Tips on the platform, which offers a comprehensive analysis of companies like Abpro, including further tips not covered here.
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