CF Acquisition Corp. VII (CFFSU), a special purpose acquisition company (SPAC) with a market capitalization of $116.47 million, announced on Monday that it will be delisted from The Nasdaq Stock Market following its failure to complete a business combination within the required timeframe.
The company's securities, including Class A common stock, warrants, and units, will be suspended from trading starting December 23, 2024. According to InvestingPro data, the stock is currently trading at $11.18, near its 52-week high of $11.21, showing relatively low price volatility despite the news.
The Nasdaq notification, received by the company on December 16, 2024, indicated that CF Acquisition Corp. VII did not fulfill the Nasdaq Listing Rule IM-5101-2, which mandates a SPAC to execute one or more business combinations within 36 months of its IPO registration statement becoming effective.
As the deadline of December 15, 2024, passed without a business combination, the company faced delisting. InvestingPro analysis reveals the company's weak financial health score of 1.73, with several additional risk indicators available to subscribers.
In response, CF Acquisition Corp. VII has chosen not to appeal the decision and will instead proceed to liquidate and redeem its outstanding public shares. The decision follows a March 14, 2024 stockholder approval to extend the business combination deadline to March 20, 2025, with a monthly deposit of $100,000 into the trust account for each month used. However, the board determined on December 17, 2024, that achieving a business combination by the extended date was improbable.
The company will not deposit the next $100,000 installment due December 20, 2024, into the trust account. Instead, it will wind up operations, redeem the public shares at a price equal to the amount in the trust account divided by the number of outstanding public shares, and dissolve the company.
Financial data from InvestingPro shows concerning metrics, including a current ratio of just 0.03, indicating significant liquidity challenges. The redemption will extinguish the stockholders' rights, subject to applicable law, and the company's warrants will expire worthless.
The company's sponsor had waived its redemption rights concerning its Class A and Class B common stock. The expected redemption price for the public shares is approximately $11.41 per share, with the redemption process to be completed by December 31, 2024.
After delisting, CF Acquisition Corp. VII will also file a Form 15 with the Securities and Exchange Commission to suspend its reporting obligations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.