Chenghe Acquisition I Co. (NASDAQ:LATG), previously known as LatAmGrowth SPAC, announced on Tuesday that its shareholders have approved amendments to its trust agreement and corporate governance documents, extending the deadline for completing a business combination by up to six months.
The extraordinary general meeting of shareholders, held on Monday, saw the approval of a proposal to extend the company's termination date from October 27, 2024, to November 27, 2024, with the potential for further monthly extensions up to April 27, 2025.
Each extension allows Chenghe Acquisition I to deposit $0.025 per Class A ordinary share not redeemed immediately after the meeting, with additional incentive payments increasing the deposit amount over time.
In addition to the extension, shareholders voted to amend the company's Articles of Association to remove the provision allowing the withdrawal of up to $100,000 of interest earned on the trust account funds to pay for dissolution expenses if a business combination is not consummated by the termination date.
The approved amendments also include a change to the investment management trust agreement, reflecting the new extension terms and the removal of the dissolution expenses clause.
Following the approval of the extension, 407,442 Class A ordinary shares were redeemed for approximately $11.66 each, totaling around $4.7 million. This redemption left approximately $41.2 million in the trust account.
The information is based on a press release statement filed with the SEC.
In other recent news, Chenghe Acquisition I Co. has reported significant financial developments, including disclosure of $45.9 million held in its trust account and the issuance of a non-convertible unsecured promissory note for up to $500,000 to its sponsor, Chenghe Investment I Limited.
The company has also announced a reshuffling of its executive leadership, with Zhiyang Zhou transitioning to the role of President and the appointment of Yixuan Yuan and Zhaohai Wang as the new CEO and CFO, respectively.
Furthermore, the company has committed to paying $0.03 per share for the first period and $0.05 per share for the second period to those who do not elect to redeem their shares immediately after the meeting. These recent developments provide insight into the ongoing operations and strategy of Chenghe Acquisition I Co.
InvestingPro Insights
As Chenghe Acquisition I Co. (NASDAQ:LATG) navigates its extended timeline for a business combination, InvestingPro data provides additional context for investors. The company's market capitalization stands at $83.86 million, reflecting its current valuation as it seeks a suitable merger target.
InvestingPro Tips highlight that LATG is not profitable over the last twelve months, which aligns with the nature of SPACs pre-merger. Additionally, the stock's price is near its 52-week high, trading at 70.67% of this benchmark. This could indicate investor optimism about the company's prospects for finding a promising business combination.
It's worth noting that LATG does not pay a dividend to shareholders, which is typical for SPACs focused on growth through acquisition rather than immediate income generation. For investors interested in a deeper analysis, InvestingPro offers 7 additional tips that could provide valuable insights into LATG's investment potential.
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