Western Acquisition Ventures Corp. (NASDAQ:WAVS), a $40 million market cap company specializing in computer programming services, has entered into two separate promissory note agreements to facilitate its upcoming business combination with Cycurion Inc. According to InvestingPro data, the company currently shows weak financial health indicators and has not been profitable over the last twelve months.
The first agreement is between Western Acquisition Ventures Corp. and its sponsor, Western Acquisition Ventures Sponsor LLC. Under this agreement, the company can borrow up to $100,000 from the sponsor for expenses related to the business combination. The note carries a principal amount of $111,111.11. This financing move comes as InvestingPro analysis shows the company's current ratio at 0.08, indicating its short-term obligations exceed liquid assets.
The second promissory note involves Cycurion, allowing the tech firm to borrow up to $50,000 from Western Acquisition Ventures Corp. to cover transaction expenses associated with the business combination. This note has a principal amount of $55,555.56.
Both notes are aimed at covering costs incurred in the process of completing the business combination, which is a significant step for Western Acquisition Ventures Corp. as it aims to expand its services in the computer programming sector.
This financial maneuver is part of the preparatory steps Western Acquisition Ventures Corp. is taking as it proceeds with the strategic business combination with Cycurion. The transaction is expected to enhance the company's capabilities and market reach in the technology sector.
In other recent news, Western Acquisition Ventures Corp. has made significant adjustments to its merger timeline with Cycurion, Inc., extending the deadline from December 31, 2024, to April 11, 2025, as per its latest 8-K filing with the SEC. The company has also amended the executive compensation agreement for its President and CEO, James P. McCormick (NYSE:MKC), who is now set to receive a total compensation of $200,000, partially funded by capital raising activities post-merger.
Western Acquisition Ventures has also entered into a non-redemption agreement with RiverNorth SPAC Arbitrage Fund, LP, securing the investor's commitment to their current holding of 99,800 shares.
Further, the company has transitioned from Marcum LLP to WWC, P.C. as its independent registered public accounting firm. In addition, Western Acquisition Ventures has secured two promissory notes, one with its sponsor, Western Acquisition Ventures Sponsor LLC, and another with Cycurion, to facilitate the upcoming business combination.
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