PALO ALTO, CA – Corner Growth Acquisition Corp. 2 (NASDAQ:TRONU), a special purpose acquisition company, announced a change in its independent registered public accounting firm. On Monday, the company disclosed in a regulatory filing that it has dismissed Marcum LLP and appointed Victor Mokuolu, CPA PLLC (VMCPA) as its new auditor.
The decision, ratified by the company's Board of Directors, comes after Marcum's recent audit reports expressed substantial doubt about Corner Growth Acquisition Corp. 2's ability to continue as a going concern.
The reports for the fiscal years ending December 31, 2023, and December 31, 2022, did not contain any adverse opinion or disclaimer and were not qualified or modified regarding audit scope or accounting principles. However, material weaknesses were identified in the company’s internal controls over financial reporting, specifically related to the accounting for certain complex financial instruments.
Corner Growth Acquisition Corp. 2 has provided Marcum with the disclosures made in the filing and has received a letter from Marcum addressed to the Securities and Exchange Commission, agreeing with the statements made by the company. This letter, dated September 30, 2024, is included as an exhibit in the 8-K filing.
During the interim period leading up to the appointment of VMCPA, the company reports that there were no consultations with VMCPA regarding the application of accounting principles to a specified transaction, disagreements on accounting matters, or any reportable events as defined by SEC regulations.
Corner Growth Acquisition Corp. 2 specializes in blank check offerings with a focus on the real estate and construction sector. The company's securities, including units, Class A ordinary shares, and redeemable warrants, are listed on The Nasdaq Stock Market.
In other recent news, Corner Growth Acquisition Corp. 2 has undergone significant leadership changes following a material definitive agreement. The company entered a purchase agreement on August 15, 2024, resulting in a shift in control. This agreement led to the transfer of 2,685,000 Class A Ordinary Shares from CGA Sponsor 2, LLC, to Connor Square, LLC, now a significant shareholder. Additionally, a substantial debt reduction was achieved as the sponsor canceled 4,950,000 private placement warrants, and certain creditors agreed to decrease the company's debt.
Following these developments, a reshuffle in the company's board was triggered, leading to the appointment of Hao Tian as the new Chief Executive Officer, Chief Financial Officer, and Director. Tian brings a wealth of experience from Amazon.com (NASDAQ:AMZN), Inc., and the World Bank Group.
In other developments, Corner Growth Acquisition Corp. 2 is facing potential delisting from the Nasdaq Stock Market due to non-compliance with certain listing requirements. The company has requested a hearing with the Nasdaq Hearings Panel, effectively postponing any suspension or delisting actions until a decision is made. The company has also submitted a plan to regain compliance with the minimum Publicly Held Shares requirement, according to Nasdaq Listing Rule 5550(a)(4).
InvestingPro Insights
Recent InvestingPro data provides additional context to Corner Growth Acquisition Corp. 2's (NASDAQ:TRONU) financial situation. The company's Price to Book ratio stands at -5.16, reflecting the market's current valuation of the company relative to its book value. This negative ratio aligns with the auditor's concerns about the company's ability to continue as a going concern.
InvestingPro Tips highlight that Corner Growth Acquisition Corp. 2's stock is trading at 82% of its 52-week high, indicating some investor confidence despite the auditor change and financial concerns. Additionally, the company's Return on Assets is 5.25%, suggesting some efficiency in using its assets to generate earnings.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for TRONU, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.