WinVest Acquisition Corp. (NASDAQ:WINV), a special purpose acquisition company, disclosed today that it has drawn an additional $30,000 from its Promissory Note with its Sponsor, WinVest SPAC LLC. The drawdown is part of an agreement allowing the company to extend its deadline to complete a business combination.
The Promissory Note, initially issued on June 12, 2024, outlines the provision of up to $180,000 to WinVest Acquisition Corp. to support the company's operations while it seeks a suitable business combination. The note is unsecured and interest-free, maturing at the earlier of a business combination's closure or the company's liquidation.
Monday's drawdown marks the fourth tranche of funding under the Promissory Note, coinciding with the extension of the Termination Date from September 17, 2024, to October 17, 2024. This extension provides WinVest Acquisition Corp. with additional time to finalize its initial business combination.
The funds drawn are deposited into the Trust Account established during the company's Initial Public Offering (IPO). Should the company not achieve a business combination, the Promissory Note is to be repaid from any available non-trust funds. In the event of liquidation, or if a business combination is consummated, the funds will be distributed to public shareholders or to those who elect to redeem their shares.
WinVest Acquisition Corp. is registered in Delaware and operates within the real estate and construction sector. The company's securities, including units, common stock, warrants, and rights, are listed on The Nasdaq Stock Market LLC under the symbols WINVU, WINV, WINVW, and WINVR, respectively.
This financial maneuver is part of the company's strategic efforts to ensure sufficient resources are available to secure a business combination, which is a critical step for SPACs following their IPO. The information provided here is based on an SEC filing by WinVest Acquisition Corp.
In other recent news, WinVest Acquisition Corp. has taken steps to secure its financial position. The company has drawn an additional $30,000 from a promissory note provided by its sponsor, WinVest SPAC LLC, bringing the total loaned amount to $60,000 of the available $180,000.
This promissory note, which does not accrue interest, matures at the closing of a business combination or at the company's liquidation. The funds, placed into a trust account established during the company's IPO, will be drawn from outside the trust account if a business combination is not realized.
Furthermore, WinVest Acquisition Corp. has extended its deadline to complete a business combination by one month. In the event of liquidation, the funds 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.
InvestingPro Insights
As WinVest Acquisition Corp. (NASDAQ:WINV) navigates through its crucial phase of securing a business combination, certain financial metrics and management activities could offer investors a clearer picture of the company's current standing. With a market capitalization of $38.89 million, the company exhibits a negative P/E ratio of -55.81, reflecting its current lack of profitability. The adjusted P/E ratio for the last twelve months as of Q2 2024 stands at -46.79.
An InvestingPro Tip highlights that management has been aggressively buying back shares, which could be indicative of their confidence in the company's future prospects. However, it's important to note that WinVest suffers from weak gross profit margins and is not profitable over the last twelve months. Additionally, the company does not pay a dividend to shareholders, which may influence the investment decisions of income-focused investors.
InvestingPro also provides a fair value estimate of $10.45 for WinVest Acquisition Corp., which is slightly below the previous close price of $11.26. This fair value assessment, coupled with the management's strategic actions, could be essential for investors considering a stake in WinVest as it seeks to complete a business combination. For those interested in a deeper dive, there are additional InvestingPro Tips available at https://www.investing.com/pro/WINVU.
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