Tlgy Acquisition Corporation Reports Significant Financial Changes in 10-Q Filing

TLGY Acquisition Corporation, a blank check company incorporated on May 21, 2021, reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company, which has not yet commenced operations, is focused on completing a business combination and had a total of 9,467,207 ordinary shares outstanding as of November 19, 2024.

As of September 30, 2024, TLGY's cash balance was $6,720, a substantial decrease from $40,621 at the end of 2023. The cash and investments held in the Trust Account also fell to $43.6 million from $66.0 million, reflecting a broader decline in total assets from $66.0 million to $43.7 million. Total liabilities decreased to $5.6 million from $12.1 million, while the accumulated deficit improved to $(5.5 million) from $(12.0 million) over the same period.

For the three months ended September 30, 2024, TLGY reported total expenses of $292,166, down from $471,360 in the same period of 2023. General and administrative expenses accounted for the entirety of the expenses in both periods. The company generated total other income of $1.5 million, which included $561,391 from cash and investments held in the Trust Account and a gain of $928,588 from changes in the fair value of derivative liabilities. This resulted in a net income of $1.2 million for the quarter, a decrease from $3.1 million in the prior year.

For the nine months ended September 30, 2024, net income was reported at $1.5 million, down from $2.3 million in the same period of 2023. The decline was attributed to lower interest income from Trust Account funds, which decreased to $2.1 million from $4.2 million year-over-year, alongside a loss in the fair value of derivative liabilities.

Strategically, TLGY faced challenges, including the termination of a merger agreement with Verde Bioresins, Inc. in March 2024, which led to the automatic termination of related agreements. The company has since entered into a Securities Transfer Agreement to facilitate share purchases by CPC Sponsor Opportunities, which now holds approximately 45% of TLGY's shares, allowing them to influence board elections.

The company has also undergone significant management changes, with a new CEO and CFO appointed in June 2024, and a new auditor engaged shortly thereafter. As of September 30, 2024, TLGY reported a working capital deficit of $4.1 million and expressed substantial doubt about its ability to continue operations if a business combination is not completed by April 16, 2025.