Berenson Acquisition Corp. I (NYSE American:BACA), a special purpose acquisition company, has terminated its previously announced business combination agreement with Custom Health, Inc., according to a report filed with the SEC on Friday. The termination, effective as of Monday, follows an agreement reached between the two companies on September 17, 2024.
The business combination agreement, initially entered into on December 22, 2023, was intended to facilitate a merger with Custom Health, a healthcare company. However, the recent filing indicates that both parties have agreed to void the agreement and that no further obligations or liabilities exist between them, except as outlined in the termination agreement.
As part of the termination conditions, Custom Health is required to return $37,500 to Berenson Acquisition Corp. I. This sum represents a portion of the advances provided by Berenson to Custom Health in connection with the planned transactions under the original business combination agreement. The repayment is scheduled to occur promptly after September 30, 2024, and no later than three business days following this date.
The termination agreement puts an end to the potential merger, which had been a subject of interest for investors and market watchers. The filing with the SEC ensures that the details of the agreement's conclusion are transparent and available for public record.
This development comes as a notable change in direction for Berenson Acquisition Corp. I, which is classified under the Blank Checks industry with a focus on Real Estate & Construction. The company's fiscal year ends on December 31, and it is incorporated in Delaware.
In other recent news, Berenson Acquisition Corp. I disclosed a significant change in its executive team. The company announced the resignation of its Chief Financial Officer, Amir Hegazy, and the subsequent appointment of Alessandro R. Masolo as the new CFO.
The company stated that this transition was not due to any disagreements with Hegazy regarding the company's operations, policies, or practices.
Masolo, a Georgetown University graduate with a successful track record in diverse financial roles, is expected to bring his extensive experience to the company's financial leadership. His previous roles include Vice President at Berenson Holdings LLC and a Board Observer for Collette Health. Notably, Masolo has closed over 20 deals in various capacities, including mergers and acquisitions, restructuring, and equity investments.
InvestingPro Insights
Following the termination of the business combination agreement with Custom Health, Berenson Acquisition Corp. I (NYSE American:BACA) remains in the spotlight for investors evaluating the company's next steps. In light of this development, several metrics from InvestingPro provide a snapshot of the company's current financial health and market position. With a market capitalization of $83.95 million, BACA's valuation reflects its status in the market. The company's price-to-earnings (P/E) ratio stands at -7.76, indicating that investors are currently valuing the company at a loss, which aligns with the company not being profitable over the last twelve months. Moreover, the stock is trading near its 52-week low, which could suggest a potential opportunity for investors looking for an entry point, though caution is warranted given the company's recent performance and strategic shifts.
InvestingPro Tips highlight that the stock generally trades with low price volatility, which may appeal to investors seeking stability in their portfolio. However, it's important to note that Berenson Acquisition Corp. I suffers from weak gross profit margins and that its short-term obligations exceed its liquid assets, posing potential liquidity risks. For those considering investing in BACA, it's worth exploring the 21 additional InvestingPro Tips available on InvestingPro to gain a more comprehensive understanding of the company's financials and market trends.
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