Mountain Crest Acquisition Corp. V, a shell company focused on effecting business combinations, reported its financial results for the period ending June 30, 2024. The company has not yet commenced operations and will not generate revenue until it completes its initial business combination.
As of June 30, 2024, Mountain Crest held $21,087 in cash, an increase from $16,089 at the end of 2023. The total assets rose to $5,959,411 from $5,629,484, primarily due to an increase in investments held in the Trust Account, which grew to $5,865,909 from $5,613,395. Current liabilities decreased to $1,097,463 from $1,277,408, with accounts payable and accrued expenses also declining significantly from $582,432 to $376,538.
The company reported a net loss of $(64,591) for the three months ended June 30, 2024, a notable improvement compared to a loss of $(206,112) for the same period in 2023. For the six months ended June 30, 2024, the net loss was $(90,128), down from $(249,448) in the prior year. General and administrative expenses decreased significantly, totaling $145,218 for the second quarter of 2024 compared to $322,349 in 2023. Interest income from investments in the Trust Account also fell to $75,065 from $148,448 year-over-year.
The company has extended its business combination period to November 16, 2024, allowing more time to finalize a merger. As part of its strategic developments, Mountain Crest entered into a Business Combination Agreement with CUBEBIO Co., Ltd. on August 29, 2024, which involves a merger and share exchange expected to list PubCo Ordinary Shares on Nasdaq. The closing of this transaction is anticipated no later than May 15, 2025.
In terms of financing, Mountain Crest issued several unsecured promissory notes to its Sponsor, totaling $1,200,000, with varying amounts outstanding as of June 30, 2024. The company has raised concerns regarding its ability to continue as a going concern if the business combination is not completed by the deadline.
The company faced compliance challenges with Nasdaq, including a notice regarding non-compliance with listing rules due to delayed filings. However, it regained compliance with the market value of listed securities requirement as of June 5, 2024.
Overall, Mountain Crest Acquisition Corp. V is navigating a critical phase as it seeks to finalize its business combination while managing its financial position and compliance with regulatory requirements.
About Mountain Crest Acquisition Corp. V
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