Cactus Acquisition Corp. 1 Limited, a blank check company incorporated in the Cayman Islands, reported significant financial developments in its 10-Q filing for the period ending September 30, 2024. The company has not generated any revenue to date and remains focused on identifying potential business combinations. As of September 30, 2024, total assets amounted to $22.2 million, a slight increase from $21.2 million at the end of 2023. This increase was primarily due to cash held in a trust account, which rose to $22.2 million from $21.2 million.
The company reported a net loss of $306,000 for the nine months ended September 30, 2024, a stark contrast to a net income of $1.4 million for the same period in 2023. For the third quarter of 2024, the net loss was $216,000, compared to a profit of $147,000 in the third quarter of 2023. The basic and diluted earnings per Class A ordinary share for the nine months ended September 30, 2024, were $0.30, down from $0.32 in the previous year.
Cactus Acquisition Corp. has faced challenges in maintaining compliance with Nasdaq listing requirements. The company received multiple notices of non-compliance throughout 2024, including issues related to market value and total holders. However, it successfully regained compliance with the Minimum Total Holders Rule by March 2024. As of November 1, 2024, the company was notified of potential delisting due to failure to complete a business combination within the required timeframe, leading to a transition to the OTC market.
Strategically, the company has made significant moves towards a business combination. On August 29, 2024, it signed a Business Combination Agreement with Tembo e-LV B.V., with a total consideration of $838 million to be paid in newly issued ordinary shares. The deadline for completing this business combination has been extended to November 2, 2025, following shareholder approval on November 1, 2024.
Financially, the company has relied on loans from sponsors to meet its operational needs, with $13,000 in cash available outside the trust account as of September 30, 2024. The company reported a working capital deficit of $858,000, excluding the sponsor loan. The ongoing liquidity challenges raise substantial doubt about the company's ability to continue as a going concern in the next twelve months.
About Cactus Acquisition Corp. 1 Ltd
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