Source: Investing Published 11/21/2024, 16:57
New York – Bleuacacia Ltd. (NASDAQ:BLEU), a special purpose acquisition company, announced its plan to liquidate and dissolve following its failure to complete a business combination within the specified timeframe. The company will repurchase all of its outstanding common stock at a price of approximately $11.10 per share, effective as of the close of business on November 22, 2024.
The repurchase price reflects the exclusion of a portion of the interest accrued in the trust account to cover taxes and up to $100,000 of dissolution expenses. Following the close of business on the specified date.
the common stock will be cancelled and will represent only the right to receive the repurchase amount.
To facilitate the distribution of funds, Bleuacacia will direct the trustee of the trust account to liquidate the account. The company will place these funds in a non-interest bearing account awaiting disbursement to shareholders. Holders of record must surrender their shares to Continental Stock Transfer & Trust Company.
the transfer agent, to receive their share of the proceeds. Beneficial owners of shares held in “street” name need not take any action to receive the repurchase proceeds.
which are expected to be completed within ten business days after November 22.
The company’s founding stockholders have agreed to waive their repurchase rights. No repurchase rights or liquidation distributions will be provided to holders of the company’s warrants and rights.
which will become worthless.
Bleuacacia also expects to file a Form 15 with the Securities and Exchange Commission to terminate the registration of its securities under the Securities and Exchange Act of 1934.
which is expected to occur within ten days after the filing of Form 25.
his resolution comes as Bleuacacia, like other blank check companies, created itself to merge with or complete a similar business combination with one or more companies. The liquidation decision comes after the Company was unable to achieve the business combination objective within the agreed period as set forth in its amended and restated memorandum and articles of incorporation.
The information provided is based on a press release from bleuacacia ltd.
In other recent news, Bleuacacia Ltd. received a notice of non-compliance from the Nasdaq Listing Qualifications Division due to the delay in filing its quarterly financial report for the period ended June 30, 2024. The Company is now required to submit a plan by November 5, 2024.
to regain compliance with Nasdaq Listing Rule 5250(c)(1).
which relates to the timely filing of periodic financial reports with the U.S. Securities and Exchange Commission.
If Nasdaq accepts this plan, Bleuacacia may receive an extension of up to 180 calendar days from the original due date of its Form 10-Q, moving the deadline to February 17, 2025. However, it remains uncertain whether Bleuacacia will meet these compliance requirements within this extended timeframe.
Failure to do so could result in Nasdaq issuing a notice of delisting.
although Bleuacacia would have the right to appeal this decision to the Nasdaq Hearing Committee. These recent developments highlight the critical importance of timely financial disclosures to maintain compliance with exchange regulations.
InvestingPro Insights
As Bleuacacia Ltd. (NASDAQ:BLEU) prepares for liquidation, recent InvestingPro data provides additional context on the company’s financial position. The company’s market cap is $83.34 million, reflecting its current valuation as it moves toward dissolution.
InvestingPro’s advice suggests that BLEU is trading near its 52-week low, which is consistent with the company’s decision to liquidate. This advice is especially relevant because the company announced a buyback price of $11.10 per share. Interestingly, despite the impending liquidation, BLEU has been profitable over the past 12 months.
with underlying earnings per share of $0.06.
The company’s P/E multiple of 193.57 indicates a high earnings multiple.
which may have contributed to the challenges it faced in finding a suitable target for a business combination. Additionally, BLEU does not pay a dividend to shareholders.
which is consistent with its structure as a special purpose acquisition company and its plan now to return capital through the liquidation process.
For investors seeking a deeper understanding of BLEU’s financial position, InvestingPro offers 6 additional tips that can provide valuable insights into the company’s performance and market position. These additional tips may be particularly useful for those analyzing the market for special purpose acquisition companies and similar investment vehicles.
