Bellevue Life Sciences Acquisition Corp. (NASDAQ:BLAC), a company specializing in surgical and medical instruments with a current market capitalization of $45.87 million, has amended the terms of its promissory notes with its sponsor, Bellevue Global Life Sciences Investors, LLC. The amendment, announced Thursday, extends the maturity date of the notes to September 30, 2025, or the date of the completion of an initial business combination, whichever comes first.
The promissory notes, which were previously issued on various dates throughout 2024, with principal amounts totaling $1,690,000, were originally set to mature on different dates. The amendment consolidates the maturity dates, providing the company with extended financial flexibility. According to InvestingPro data, the company's short-term obligations currently exceed its liquid assets, with a concerning current ratio of 0.01, making this amendment particularly significant for its financial stability.
The promissory notes are unsecured and were issued to the company's sponsor in four separate tranches: $1,200,000 on April 8, 2024, $50,000 on April 17, 2024, $140,000 on May 14, 2024, and $300,000 on July 11, 2024. The amendment does not change any other terms of the promissory notes.
This strategic move comes as Bellevue Life Sciences continues to explore opportunities for an initial business combination, a critical step for the company's growth and development in the medical instruments sector.
The extension of the promissory notes' maturity date grants the company additional time to identify and secure a suitable business combination partner. InvestingPro analysis reveals the company is currently not profitable, with a basic EPS of -$0.09 over the last twelve months. Get access to more detailed financial insights and exclusive ProTips by subscribing to InvestingPro.
Bellevue Life Sciences Acquisition Corp. is a Delaware-incorporated entity with its principal executive offices located in Bellevue, Washington. The company's securities, including units, common stock, redeemable warrants, and rights, are traded on The Nasdaq Stock Market under the symbols BLACU, BLAC, BLACW, and BLACR, respectively. The stock is currently trading near its 52-week high of $12, though InvestingPro analysis suggests the company may be overvalued at current levels. Discover comprehensive valuation metrics and financial health indicators with an InvestingPro subscription.
The amendments include the removal of redemption features from the Series A Preferred Stock that Toonon agreed to purchase for $20 million and revisions to the Non-Participating Stockholder Joinder to establish a termination date for the put and call rights, as part of the ongoing efforts to finalize the business combination between Bellevue and OSR Holdings.
In addition to these developments, Bellevue has extended its merger deadline to February 14, 2025, and issued several promissory notes, including a $300,000 loan to OSR Holdings, an $800,000 unsecured note to Duksung Co., LTD., and a $40,000 note to board member Jun Chul Whang. Furthermore, the company extended the maturity dates of promissory notes held by board members Jun Chul Whang and Josh Pan, and issued a non-interest bearing promissory note for $300,000 to its sponsor, Bellevue Global Life Sciences Investors, LLC.
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