AlphaVest Acquisition Corp. Releases 10-K Report Highlighting Financial and Operational Performance
AlphaVest Acquisition Corp., a blank check company incorporated in the Cayman Islands, has released its Form 10-K report for the fiscal year ending December 31, 2023. The company, which focuses on effecting mergers, share exchanges, asset acquisitions, share purchases, reorganizations, or similar business combinations, primarily targets businesses in Asia. The report provides a comprehensive overview of AlphaVest's financial performance, business operations, strategic initiatives, and the challenges it faces.
Financial Highlights
Net Income: $2.904 million, primarily from interest earned on marketable securities held in the Trust Account and bank interest income of $3.580 million, offset by formation and operating costs of $0.676 million.
Net Loss for the period from January 14, 2022 through December 31, 2022: $0.043 million, consisting of interest earned on marketable securities held in the Trust Account and bank interest income of $0.038 million, offset by formation and operating costs of $0.081 million.
Business Highlights
Company Overview: AlphaVest Acquisition Corp is a blank check company focused on effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. The company primarily targets businesses in Asia but is not limited to a specific industry or geographic region.
Business Strategy: The company aims to leverage the expertise of its management team, which includes experienced financial services, accounting, and legal professionals, to identify attractive acquisition opportunities. The focus is on private companies in Asia with compelling economics and clear paths to positive operating cash flow.
Acquisition Criteria: AlphaVest seeks companies with strong management teams, potential for revenue and earnings growth, strong free cash flow generation, and those that would benefit from being publicly traded.
Initial Public Offering: The company completed its IPO on December 22, 2022, raising $60 million through the sale of 6 million units at $10 per unit. An additional $9 million was raised through the exercise of an over-allotment option.
Trust Account: Proceeds from the IPO and private placements were deposited into a trust account, with funds earmarked for completing an initial business combination. As of December 31, 2023, the trust account held approximately $50.88 million.
Business Combination Efforts: On August 11, 2023, AlphaVest entered into a business combination agreement with Wanshun Technology Industrial Group Limited. However, this agreement was terminated on March 18, 2024.
Extension of Business Combination Deadline: The company extended the deadline to complete a business combination multiple times, with the current extension allowing until December 22, 2024.
Management Team: The management team is composed of individuals with extensive experience in mergers and acquisitions and operating companies across multiple jurisdictions.
Future Outlook: AlphaVest plans to continue its search for a suitable business combination target and has extended its timeline to allow for additional time to identify and consummate a transaction.
Strategic Initiatives
Focus on Business Combination: AlphaVest Acquisition Corp is focused on completing its initial business combination using cash from its IPO proceeds, private placements, and potential debt or equity financing. The company is actively searching for a suitable business combination target, primarily in Asia but is open to other regions and industries.
Capital Management: The company has not generated operating revenues and relies on interest income from marketable securities held in a trust account. It completed an IPO raising $60 million and an additional $9 million from the exercise of an over-allotment option. The funds are held in a trust account to be used for the business combination. The company has also issued promissory notes to its sponsors to cover expenses related to the IPO and business combination extensions.
Future Outlook: AlphaVest Acquisition Corp faces substantial doubt about its ability to continue as a going concern if it does not complete a business combination within the specified period. The company may need additional financing to complete a business combination or if it needs to redeem a significant number of public shares. It plans to use the trust account funds for the business combination and may seek further capital through debt or equity if necessary.
Challenges and Risks
Supply Chain Dependency: The company's reliance on a single supplier for key raw materials presents a significant risk. This dependency could lead to supply chain disruptions, increased costs, or inability to meet production demands if the supplier faces operational issues or decides to alter terms.
Business Combination Risks: The company faces risks related to its search for and consummation of a business combination, including the potential inability to complete a business combination within the prescribed timeframe, which could lead to liquidation and loss of investment for shareholders.
Pandemic Impact: The COVID-19 pandemic continues to pose a material adverse effect on the company's ability to consummate a business combination due to travel restrictions and market volatility.
Competition Among SPACs: Increased competition among special purpose acquisition companies (SPACs) for attractive targets may result in higher costs and challenges in finding suitable acquisition opportunities.
Regulatory Risks: Potential changes in market regulations could impact the company's operations and financial condition. The company also faces risks related to its status as a Cayman Islands exempted company, which may affect its ability to attract U.S.-based target companies due to foreign investment regulations and review by entities like CFIUS.
Capital Requirements: Management has identified the need for significant capital to pursue acquisition plans as a primary challenge. There is substantial doubt about its ability to continue as a going concern if these plans are unsuccessful.
Market Risks: The company is exposed to market risks, including fluctuations in interest rates and potential changes in the market for directors and officers liability insurance. Additionally, foreign currency exchange rate fluctuations could adversely affect its financial results.