Flag Ship Acquisition Corp, a company specializing in blank check offerings, has announced a change in its certifying accountant. Effective July 16, 2024, MaloneBailey LLP has been engaged as the new independent registered public accounting firm for the year ending December 31, 2024.
This decision was made by the Audit Committee of the Board of Directors and led to the dismissal of the previous accounting firm, Marcum Asia CPAs LLP, on the same date.
The transition comes without any reported disagreements with Marcum Asia regarding accounting principles or practices, financial statement disclosure, or auditing scope or procedure.
However, the company did acknowledge material weaknesses in internal control over financial reporting, including a failure to properly record certain costs as they were incurred.
These weaknesses were previously disclosed in a Registration Statement dated May 22, 2024, and led to the restatement of the company's financial statements for the year ended December 31, 2022.
Marcum Asia's report on the company's financial statements for the years ending December 31, 2023, and December 31, 2022, did not contain any adverse opinion or disclaimer of opinion. However, it did include an explanatory paragraph about the company's liquidity condition, raising substantial doubt about its ability to continue as a going concern, and a note regarding the restatement of previously issued financial statements.
In other recent news, Flag Ship Acquisition Corp has entered into a noteworthy agreement with Whale Management Corporation. The company issued an unsecured promissory note of up to $1 million for working capital purposes. The note, which carries no interest, is set for repayment by the end of 2025 or upon the completion of the company's initial business combination, whichever comes first.
In addition to this, Flag Ship Acquisition Corp successfully completed its initial public offering (IPO), raising a substantial $69 million. This IPO included 6,900,000 units at $10.00 per unit, fully exercising the underwriter's over-allotment option. Concurrently, a private placement to Whale Management Corporation further raised $2.38 million and eliminated $500,640 in debt.
These recent developments have culminated in a total of $69 million, now held in a trust account at Wilmington Trust, N.A. The funds will remain in trust until the company completes its initial business combination, subject to certain conditions.
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