Kairous Acquisition Corp. Limited (NASDAQ:KACL), a special purpose acquisition company, has announced the extension of its deadline to complete a business combination. The company disclosed on Thursday that it has entered into an agreement to extend the period available for completing a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses.
On Wednesday, Kairous Acquisition Corp. issued an unsecured promissory note for $50,000 to Kairous Asia Limited, its initial public offering sponsor, to fund the extension. The note, which carries no interest, is set to mature at the closing of a business combination. Moreover, the sponsor has the option to convert the note into ordinary shares of the company at a conversion price of $10.10 per share at the time of a business combination.
The extension provides Kairous with additional time until November 16, 2024, to finalize a business combination. To facilitate this extension, the company deposited $50,000 into its trust account on October 16, 2024.
This strategic move is designed to give Kairous the necessary leeway to identify and complete a transaction that will benefit its shareholders. The company's units, ordinary shares, redeemable warrants, and rights are currently listed on The Nasdaq Stock Market under the symbols KACLU, KACL, KACLW, and KACLR, respectively.
InvestingPro Insights
As Kairous Acquisition Corp. Limited (NASDAQ:KACL) extends its deadline to complete a business combination, investors may find additional context from InvestingPro data and tips valuable. The company's market capitalization stands at $45.39 million, reflecting its current size as a special purpose acquisition company (SPAC).
An InvestingPro Tip indicates that KACL's stock generally trades with low price volatility, which could be appealing to investors seeking stability during the extended search period for a suitable business combination. This characteristic aligns with the nature of SPACs before a merger target is announced.
Another relevant InvestingPro Tip suggests that the stock is trading near its 52-week low. This information could be significant for investors considering the SPAC's current valuation in light of the extended deadline. The company's price-to-earnings ratio is notably high at 456.05, which is typical for SPACs that have not yet completed a business combination.
For those interested in a more comprehensive analysis, InvestingPro offers 8 additional tips for KACL, providing a deeper understanding of the company's financial position and market performance as it navigates the extended timeline for a potential merger.
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