GRAND CAYMAN - Blockchain Coinvestors Acquisition Corp. I (NASDAQ:BCSA), a special purpose acquisition company, announced today its decision to redeem all outstanding Class A ordinary shares and proceed with the liquidation and dissolution of the company. The move comes as BCSA has not completed an initial business combination by the deadline set in its Charter, November 15, 2024.
Public shareholders will receive a cash redemption amounting to approximately $11.39 per share, calculated based on the funds in the company's trust account. The total available for distribution from the trust account is expected to be around $17.9 million after accounting for dissolution expenses and taxes. The number of public shares as of October 30, 2024, stood at 1,578,648.
BCSA's sponsor, Blockchain Coinvestors Sponsor I LLC, and its directors have waived their rights to funds from the trust account. The company's liquidation is scheduled to occur around November 13, 2024, with the Nasdaq Stock Market anticipated to delist BCSA's securities shortly before that.
The announcement follows the receipt of a $5.0 million termination fee from Linqto, Inc. on October 22, 2024, after a terminated business combination agreement. These funds will cover the company's outstanding obligations, with any remaining amounts to be distributed following the redemption of the public shares.
Beneficial owners of the public shares held in "street name" need not take any action to receive the redemption amount. However, there will be no redemption rights or liquidating distributions for the company's warrants, which are set to expire worthless.
The final day of trading for BCSA's public shares, units, and warrants on the Nasdaq Stock Market is projected to be around November 12, 2024. The company will then file a Form 15 with the SEC to terminate the registration of its securities.
This announcement is based on a press release statement from Blockchain Coinvestors Acquisition Corp. I.
In other recent news, Blockchain Coinvestors Acquisition Corp. I (BCSA) and private investment platform Linqto Inc. have terminated their planned business combination agreement. Previously, on April 9, 2024, BCSA had entered into a Business Combination Agreement with Linqto and BCSA Merger Sub I, Inc. However, Linqto has now sent a notice to BCSA to terminate the agreement effective immediately. As part of the termination conditions, Linqto has agreed to pay BCSA a termination fee of $5 million, which is due within 30 days from the termination date. BCSA, led by Chairman and Managing Director Matthew Le Merle, CEO and Managing Director Lou Kerner, Managing Director Alison Davis, and CFO Mitchell Mechigian, is a special purpose acquisition company designed to facilitate various business combinations. In light of these recent developments, it is worth noting that BCSA's management may be considered participants in the solicitation of proxies from BCSA's shareholders in connection with future proposed business combinations.
InvestingPro Insights
As Blockchain Coinvestors Acquisition Corp. I (NASDAQ:BCSA) prepares for liquidation, recent InvestingPro data provides additional context to the company's financial situation. With a market capitalization of $149.65 million, BCSA's stock is trading at 96.8% of its 52-week high, reflecting investor sentiment leading up to the liquidation announcement.
The company's P/E ratio of 18.08 and adjusted P/E ratio of 39.12 for the last twelve months as of Q2 2024 suggest that investors were valuing the company based on its potential for completing a business combination rather than its current earnings. This is further supported by the negative operating income of $2.71 million for the same period.
InvestingPro Tips highlight that BCSA has been profitable over the last twelve months, which aligns with the company's ability to return funds to shareholders. The tip indicating that the stock generally trades with low price volatility is consistent with its nature as a SPAC, where share prices often remain close to the trust value until a merger is announced or, in this case, liquidation occurs.
It's worth noting that InvestingPro offers 8 additional tips for BCSA, which could provide further insights into the company's financial health and market position leading up to this liquidation event.
The upcoming redemption at approximately $11.39 per share represents a slight premium to the previous closing price of $11.60, offering shareholders a modest gain upon liquidation. This redemption price also exceeds the InvestingPro Fair Value estimate of $7.73, suggesting that shareholders may be receiving more value than the market previously anticipated.
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