Healthcare AI Acquisition Corp. (OTC Markets Group, Inc.: HAIUF, HAIAF, HAIWF), a micro-cap company with a market capitalization of $67 million, has entered into an unsecured promissory note agreement with Leading Group Limited for a $100,000 loan aimed at bolstering its working capital. The transaction, which took place on January 17, 2025, is set to mature upon the completion of a previously announced business combination with Leading Partners Limited.
The note, which does not accrue interest, will be settled in cash at the closing of the business combination. In the event of a liquidation before the business combination is finalized, the outstanding amount will also be required to be paid in cash. According to InvestingPro data, the company's current ratio of 0.02 indicates significant pressure on short-term liquidity, with short-term obligations exceeding liquid assets.
This financial move follows the company's August 15, 2024, announcement of its plans to engage in a business combination with Leading Partners Limited, which is part of a strategy to expand its operations in the healthcare sector.
Healthcare AI Acquisition Corp., based in Albany, New York, is a blank check company that operates within the real estate and construction sector. Currently trading at $11.1 and near its 52-week high, the company shows a FAIR financial health score according to InvestingPro analysis, which offers 6 additional investment tips for subscribers. The promissory note agreement with Leading Group Limited is detailed in the company's latest 8-K filing with the Securities and Exchange Commission.
In other recent news, Healthcare AI Acquisition Corp. has been actively making strategic financial moves. The company has taken a $52.7K loan aimed at supporting its working capital needs, including a monthly extension fee for its planned business combination. This move is in line with the company's strategic efforts to facilitate the completion of its business combination, as noted in its most recent SEC filing.
In addition, the company issued an unsecured promissory note for $100,000 to Leading Group Limited, with whom it has a pending business combination agreement. The note carries no interest and is set to mature upon the closure of the business combination. The company has the option to repay the note in cash or convert it into Class A ordinary shares at the lender's discretion.
Furthermore, during a recent general annual meeting, shareholders approved an extension of the deadline to complete the business combination. The new deadline can now be extended monthly until May 14, 2025.
This follows a previous announcement that the company has set a deadline of June 14, 2025, to finalize the business combination. The company's overall Financial Health score is rated as WEAK, according to InvestingPro analysis.
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