Chenghe Acquisition I Co. (NASDAQ:LATG), previously known as LatAmGrowth SPAC, has entered into a definitive agreement with its sponsor, Chenghe Investment I Limited, issuing a non-convertible unsecured promissory note for up to $500,000. This financial instrument was issued today and is non-interest bearing.
The principal amount of the note is due upon the completion of a significant business combination, such as a merger, share exchange, asset acquisition, or similar transaction involving Chenghe Acquisition I Co. The maturity of the note can be expedited in the event of an "Event of Default," as outlined in the note's terms.
This move by the company, which operates under the industrial classification of "blank checks" and is based in Singapore, represents a creation of a direct financial obligation. The note will be repaid on the effective date of the company's initial business combination.
Chenghe Acquisition I Co. has stated that further details of the note are included in Exhibit 10.1 of the 8-K filing. The company, which is an emerging growth company, has not elected to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
The information provided in this article is based on a press release statement and aims to provide investors with a clear understanding of Chenghe Acquisition I Co.'s latest financial developments. The company's stock is listed on The Nasdaq Stock Market under the ticker symbols LATGU for its units and LATG for its Class A ordinary shares.
In other recent news, Chenghe Acquisition I Co. has announced significant changes in its executive leadership. The company reported that Zhiyang Zhou has stepped down as the CEO and CFO due to personal reasons and has transitioned to the role of President. The board of directors has appointed Yixuan Yuan as the new CEO and Zhaohai Wang as the new CFO.
Yuan, 31, brings a wealth of experience from capital markets, having worked on approximately fifty transactions across various sectors. She joined Chenghe Group Ltd. as a Managing Director in February. Wang, 25, has a background in finance and investment, with past positions including an associate at Chenghe Capital Management Limited and a Client Manager at China Merchants Bank's Retail Finance Department.
The company has confirmed that neither Yuan nor Wang has any familial relationships with any current directors or executive officers of the company, nor are they involved in any material plans, contracts, or arrangements with Chenghe Acquisition I Co. These developments have recently been announced in a filing with the Securities and Exchange Commission.
InvestingPro Insights
Investors interested in Chenghe Acquisition I Co. (NASDAQ:LATG) should note that, according to recent InvestingPro data, the company has a market capitalization of $82.06 million and is trading near its 52-week high. While the company's P/E ratio stands at -46.18, indicating that investors are willing to pay a premium despite the company not being profitable over the last twelve months, the adjusted P/E ratio for the last twelve months as of Q1 2024 is slightly improved at -39.05.
Two InvestingPro Tips to consider are that the Relative Strength Index (RSI) suggests the stock is currently in overbought territory, and that the company has been trading with low price volatility. These factors could be of interest to investors who are weighing the company's recent financial maneuvers against its stock performance.
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