Cartica Acquisition Corp, a blank check company, has amended its existing promissory note to increase the available principal amount from $1.25 million to $1.75 million. This amendment, dated Monday, was disclosed in a recent 8-K filing with the U.S. Securities and Exchange Commission (SEC).
The promissory note is an agreement with Cartica Acquisition Partners, LLC, the company's sponsor, initially reported in September 2023. The note was established to provide Cartica Acquisition Corp with up to $300,000 for working capital expenses. Subsequent amendments in February and April 2024 raised the principal sum to $750,000 and then to $1,250,000, respectively.
Additionally, the filing reveals that on June 17, Cartica Acquisition Corp received a notice from The Nasdaq Stock Market LLC. The notice stated that the company's request for continued listing on the exchange and transfer of its securities to the Nasdaq Capital Market from the Nasdaq Global Market was granted, with a compliance deadline of June 28, 2024, for the Minimum Total Holders Rule.
This development follows the company's previous notification of non-compliance with Nasdaq's requirement to maintain a minimum of 400 public holders for continued listing on the Nasdaq Global Market. After a hearing on May 23, the Panel granted the company's request for continued listing, subject to the condition mentioned above.
InvestingPro Insights
As Cartica Acquisition Corp navigates the financial landscape, recent data from InvestingPro provides a deeper look into the company's market performance and valuation metrics. With a market capitalization of $89.99 million, Cartica stands out in its sector. However, potential investors should note the company's high price-to-earnings (P/E) ratio, which at 416.53 indicates a significant earnings multiple, suggesting that the stock may be trading at a premium relative to its earnings.
Additionally, the company's P/E ratio adjusted for the last twelve months as of Q1 2024 has seen a decrease to 217.86, reflecting changes in earnings or stock price since the previous period. Despite this, Cartica Acquisition Corp trades with low price volatility, providing some level of stability in its stock price movements. The company has been profitable over the last twelve months, as evidenced by a basic and diluted EPS (Continued Operations) of $0.03, which can be a reassuring sign for investors seeking companies with a positive earnings track record.
For those considering an investment, there are additional InvestingPro Tips available that shed light on aspects such as gross profit margins and liquidity. Cartica Acquisition Corp does not pay dividends, which could influence the investment strategy of income-focused shareholders. To explore these insights further, consider visiting InvestingPro for a comprehensive analysis. Moreover, use the coupon code PRONEWS24 to receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable tips for informed decision-making.
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