Pyrophyte Acquisition Corp., a Special Purpose Acquisition Corporation (SPAC) incorporated in February 2021, reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2024. The company, which has yet to commence operations, recorded a net income of $1.94 million for the three months ended March 31, 2024, a notable increase from $1.01 million in the same period of the previous year. This resulted in a basic and diluted net income per share of $0.14, up from $0.04 in the prior year.
Total current assets rose to $1.04 million as of March 31, 2024, compared to $589,711 at the end of 2023, primarily due to an increase in cash held in the Trust Account, which grew to $100.52 million from $98.87 million. However, cash on hand decreased significantly to $62 from $1,253 over the same period. The company’s total assets increased to $101.56 million, while total current liabilities rose to $2.92 million from $2.58 million, leading to a slight improvement in total shareholders’ deficit to $(15.18 million) from $(15.48 million).
In terms of strategic developments, Pyrophyte entered into a Business Combination Agreement with Sio Silica Corporation on November 13, 2023. The company is required to complete this business combination by April 29, 2025, or face liquidation. Shareholders approved an extension of the deadline for the initial business combination from April 29, 2024, to April 29, 2025, during a meeting held on April 26, 2024. Following this approval, 2.68 million Class A ordinary shares were redeemed for approximately $30.4 million, leaving 6.29 million public shares outstanding.
The company has also drawn $960,000 on a working capital loan from its Sponsor, with an outstanding balance of $746,742 as of March 31, 2024. Additionally, the Sponsor has committed to monthly contributions of $90,000 to the Trust Account until the completion of the business combination or liquidation.
Overall, while Pyrophyte Acquisition Corp. has shown improvements in net income and asset values, it continues to face challenges related to liquidity and the impending deadline for its business combination. The company’s ability to execute its strategic plans will be critical in the coming months.
About Pyrophyte Acquisition Corp.
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