Western Acquisition Ventures Corp. (NASDAQ:WAVS), a company specializing in computer programming services, announced on Wednesday an amendment to its executive compensation agreement. The adjustment, effective October 30, 2024, modifies the terms of the employment agreement with James P. McCormick (NYSE:MKC), the President and CEO.
According to the updated terms, McCormick will receive a total compensation of $200,000. This includes an immediate payment of $40,000 in cash following the close of the company's business combination with Cycurion, Inc. The remaining $160,000 will be paid from the proceeds of any capital raising activities post-combination, such as an equity line of credit with Cycurion and the investors.
The company clarified that only up to 15% of the proceeds from each capital raise would be allocated to McCormick's compensation until the full $200,000 is paid. This amendment is detailed in Exhibit 10.1, attached to the current report filed with the SEC.
The business combination with Cycurion and the subsequent capital raising efforts are part of Western Acquisition Ventures' strategic initiatives. The company's securities, including units, common stock, and redeemable warrants, are traded on The NASDAQ Stock Market LLC under the symbols WAVSU, WAVS, and WAVSW, respectively.
In other recent news, Western Acquisition Ventures Corp. has been making strategic moves to secure its financial future. The company has extended its deadline for a business combination from October 11, 2024, to January 11, 2025, a decision approved by a majority of stockholders. Western Acquisition Ventures has also entered into a significant non-redemption agreement with RiverNorth SPAC Arbitrage Fund, LP, ensuring the investor retains a stake of 99,800 shares in the company.
In addition to these developments, Western Acquisition Ventures has secured two promissory notes to facilitate an upcoming business combination. One note, with its sponsor, Western Acquisition Ventures Sponsor LLC, is for $255,555.56, and another with Cycurion, is for $210,555.56.
InvestingPro Insights
As Western Acquisition Ventures Corp. (NASDAQ:WAVS) adjusts its executive compensation structure, investors might benefit from additional financial context provided by InvestingPro. The company's market capitalization stands at $40.08 million, reflecting its current valuation in the market.
InvestingPro Tips highlight that WAVS has not been profitable over the last twelve months, which aligns with the reported operating income of -$1.37 million. This financial performance may explain the company's focus on future capital raising activities to fund executive compensation.
Another relevant InvestingPro Tip indicates that WAVS's short-term obligations exceed its liquid assets. This could potentially impact the company's ability to meet immediate financial commitments, including the newly structured executive compensation package.
For investors seeking a more comprehensive analysis, InvestingPro offers 4 additional tips for WAVS, providing a deeper understanding of the company's financial position and market performance.
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