In a recent move to provide additional time for completing its initial business combination, Metal Sky Star Acquisition Corporation (NASDAQ:MSSA) has amended its trust agreement and extended the deadline for the business combination period. The decision, which was approved by shareholders at an extraordinary general meeting on Monday, allows the company to extend the period by up to eight additional months.
The amendment to the Investment Management Trust Agreement with Wilmington Trust, N.A., as trustee, and Vstock Transfer LLC, dated March 30, 2022, and previously amended on October 31, 2023, now permits Metal Sky Star Acquisition Corp to deposit a monthly extension fee of $50,000 for each one-month extension.
The new deadline for completing a business combination has been set to April 5, 2025, extending the period from the original date of August 5, 2024.
Furthermore, the company's Amended and Restated Memorandum and Articles of Association were also modified to reflect the new deadline. This amendment was filed with the Cayman Islands General Registry on November 13, 2024.
During the extraordinary general meeting, shareholders voted in favor of both the trust agreement amendment and the changes to the company's articles of incorporation. The exact vote count was 5,157,538 for and 337,384 against, with no abstentions recorded.
In association with the shareholders' approval, it was reported that 2,649,965 shares were tendered for redemption. This event signifies a step forward for Metal Sky Star Acquisition Corporation as it continues its pursuit of a suitable business combination within the newly established timeframe.
This article is based on the information provided in a recent SEC filing by Metal Sky Star Acquisition Corporation.
In other recent news, Metal Sky Star Acquisition Corporation has regained compliance with Nasdaq's filing and shareholder requirements, as stated in an 8-K filing with the U.S. Securities and Exchange Commission.
The company has been permitted to continue its listing on the Nasdaq Global Market, following the amendment of its articles of incorporation to extend the deadline for completing a business combination to November 30, 2024.
Metal Sky Star Acquisition Corp has also responded to a delisting notice from The Nasdaq Stock Market due to non-compliance with rules requiring a business combination within 36 months of an IPO and timely filing of periodic financial reports.
The company has since filed its annual report for the fiscal year ending December 31, 2023, and is working towards filing its quarterly reports promptly. In a separate development, Metal Sky Star recently received a notice from Nasdaq's Listing Qualifications Department indicating non-compliance with the Minimum Public Holders Rule.
Amid these developments, the company is now required to submit a plan to regain compliance within 45 calendar days. Metal Sky Star's securities, including ordinary shares, units, redeemable warrants, and rights, remain actively traded on the Nasdaq. The company has committed to addressing these issues and intends to submit a compliance plan promptly.
InvestingPro Insights
Metal Sky Star Acquisition Corporation's recent decision to extend its business combination deadline aligns with several key insights from InvestingPro. The company's market cap stands at $74.65 million, reflecting its current valuation as it seeks a suitable merger target.
InvestingPro Tips highlight that MSSA is trading near its 52-week high, which could indicate investor confidence in the company's prospects despite the extension. Additionally, the stock generally trades with low price volatility, suggesting stability as the company navigates this crucial period.
It's worth noting that MSSA has been profitable over the last twelve months, with a P/E ratio of 47.5. This high earnings multiple, as pointed out by InvestingPro, may reflect market expectations for future growth once a business combination is completed.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide valuable insights into MSSA's financial position and market performance as it approaches its new business combination deadline.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.