OCA Acquisition Corp. (OTC Pink Sheets: OCAX), a special purpose acquisition company with a current market capitalization of $72.21 million and trading at $10.72 per share, announced Monday its intention to redeem all of its outstanding Class A common stock shares that were previously sold during its initial public offering.
The redemption is scheduled to occur on or about Wednesday, January 22, 2025. This move comes as a result of the company's inability to complete an initial business combination within the timeframe mandated by its amended and restated certificate of incorporation.
The company had entered into a Merger Agreement with Powermers Smart Industries, Inc. ("PSI") on December 21, 2023. According to InvestingPro data, OCA's financial health score is rated as WEAK, with short-term obligations exceeding liquid assets. PSI sent a letter to OCA Acquisition Corp. attempting to terminate the agreement, citing that the merger did not occur by the deadline of October 31, 2024.
OCA Acquisition Corp. disputes the validity of this termination, claiming that PSI's material breach of the agreement was the cause of the merger's failure to be completed by the deadline. The company is now considering legal action against PSI for damages due to non-performance under the Merger Agreement.
In line with regulatory requirements, OCA Acquisition Corp. will distribute the pro rata portion of the funds held in the company's trust account to the holders of the public shares. This distribution will include the interest earned on the funds in the trust account, minus up to $100,000 to cover dissolution expenses. Shareholders will receive their share of the trust account funds, with no other amounts being distributed.
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