WinVest Acquisition Corp. (NASDAQ:WINV), a special purpose acquisition company, has announced the third drawdown of $30,000 from a promissory note with its sponsor, as disclosed in a recent 8-K filing with the Securities and Exchange Commission. The funds were deposited into the company's trust account to facilitate an extension of the deadline for completing a business combination.
The Delaware-incorporated company, which is classified under the Blank Checks industry, has extended the termination date from August 17, 2024, to September 17, 2024. The promissory note, initially issued on June 12, 2024, allows for up to $180,000 in loans from WinVest SPAC LLC, a Delaware limited liability company, to support the company's efforts in securing a business combination.
The terms of the promissory note stipulate that it is unsecured, does not accrue interest, and is due at the earlier of the closing of a business combination or the company's liquidation. The note can be drawn in six equal amounts of $30,000 each, corresponding to approximately $0.061 per unredeemed public share.
In the event that WinVest Acquisition Corp. does not achieve a business combination, repayment of the promissory note will come from funds outside of the trust account established during the company's initial public offering (IPO).
If the company liquidates, the amounts in the trust account will be distributed to all holders of the company's common stock issued during the IPO or to those who elect redemption in connection with a business combination.
In other recent news, WinVest Acquisition Corp. has secured additional funding, extending its deadline to finalize a business combination by a month. This was made possible by an extra financial boost from its sponsor, WinVest SPAC LLC.
The company reported drawing an additional $30,000 from an unsecured promissory note from its sponsor, making the total borrowed amount $60,000 of the $180,000 available. The promissory note, which does not accrue interest, matures either at the closing of a business combination or the company's liquidation.
The funds are deposited into a trust account established during WinVest Acquisition Corp.'s IPO. If a business combination does not happen, the note's repayment will be sourced from funds outside the trust account. The deadline for completing a business combination has been moved from July 17, 2024, to August 17, 2024.
In case of liquidation, the deposited funds will be distributed to all holders of the company's common stock issued during the IPO or those who choose to redeem their shares if a business combination is successfully consummated. These are the latest developments in the company's financial strategy.
InvestingPro Insights
In light of WinVest Acquisition Corp.'s recent financial activities as they seek a business combination, certain metrics and tips from InvestingPro provide additional context for investors. With a market capitalization of $45.69 million and trading near its 52-week low, the company presents a unique profile. Despite not having turned a profit over the last twelve months, WinVest's management has shown confidence through aggressive share buybacks and a high shareholder yield, according to InvestingPro Tips.
Investors should note that the company's short-term obligations currently exceed its liquid assets, which could be a point of concern. However, the InvestingPro Fair Value estimate stands at $13.43, suggesting potential undervaluation at the current price of $11.69. For those looking deeper into WinVest's financial health, additional InvestingPro Tips, which include further analysis of the company's financials and market performance, can be found at https://www.investing.com/pro/WINVU.
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