Alchemy Investments Acquisition Corp 1, a special purpose acquisition company (SPAC) also known as a blank check company, disclosed the issuance of equity securities in an unregistered sale to its sponsor, according to a filing with the U.S. Securities and Exchange Commission (SEC) on Monday.
On Thursday, the company converted an aggregate of 2,874,999 Class B ordinary shares into Class A ordinary shares, par value $0.0001 each, and issued them to Alchemy Deeptech Capital LLC, the company's sponsor. This conversion is part of the company's organizational structure, where Class B shares typically convert into Class A shares under certain conditions.
The newly issued Class A shares are subject to the same conditions as the Class B shares before conversion. These conditions include restrictions on transfer, waiver of redemption rights, and an obligation to vote in favor of a proposed initial business combination as outlined in the company's initial public offering prospectus.
Following this conversion, Alchemy Investments Acquisition Corp 1 has 14,970,499 Class A shares and one Class B share outstanding. The transaction took advantage of an exemption from registration provided by Section 3(a)(9) of the Securities Act of 1933, which allows for the exchange of securities without registration under certain conditions.
The company's securities, including units consisting of one Class A ordinary share and one-half of one redeemable warrant, as well as individual Class A ordinary shares and warrants, are listed on The Nasdaq Stock Market under the symbols ALCYU, ALCY, and ALCYW, respectively.
This move comes as Alchemy Investments Acquisition Corp 1 continues to operate within the parameters set for emerging growth companies, which are subject to different reporting and regulatory standards.
The information for this article is based on a press release statement from the company filed with the SEC.
InvestingPro Insights
Alchemy Investments Acquisition Corp 1's recent share conversion aligns with its SPAC structure, and InvestingPro data offers additional context for investors. The company's market capitalization stands at $163.18 million, with a P/E ratio of 29.83. This valuation metric is particularly interesting given one of the InvestingPro Tips, which notes that the stock is "trading at a low P/E ratio relative to near-term earnings growth."
Another relevant InvestingPro Tip highlights that the stock "generally trades with low price volatility," which may be appealing to investors looking for stability in the SPAC market. It's worth noting that while the company is profitable over the last twelve months, it does not pay a dividend to shareholders, which is typical for SPACs focused on potential business combinations.
For investors seeking a deeper understanding of Alchemy Investments Acquisition Corp 1's financial position, InvestingPro offers 6 additional tips and a comprehensive set of financial metrics. These insights can be particularly valuable when evaluating the potential of a SPAC investment in the current market environment.
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