Western Acquisition Ventures secures promissory notes By Investing.com

Western Acquisition Ventures Corp. (NASDAQ:WAVS), a company specializing in computer programming services, has entered into two significant promissory notes as of Monday. The first agreement involves a promissory note with its sponsor, Western Acquisition Ventures Sponsor LLC, for a principal amount of $255,555.56, allowing the company to borrow up to $230,000.00 for expenses related to a business combination with Cycurion Inc. The second is a promissory note with Cycurion for $210,555.56, enabling Cycurion to borrow up to $180,000.00 for transaction expenses in connection with the business combination.

The promissory notes are aimed at facilitating the financial aspects of the impending business combination between Western Acquisition Ventures and Cycurion, a strategic move that could have implications for both entities involved. The terms of the promissory notes have been laid out in exhibits 10.1 and 10.2, respectively, filed with the SEC in a Current Report on Form 8-K.

Western Acquisition Ventures Corp., based in New York with an IRS identification number of 86-3720717, is a Delaware incorporated entity with its common stock and redeemable warrants listed on The NASDAQ Stock Market under the symbols WAVS and WAVSW, respectively. Units comprising one share of common stock and one redeemable warrant are also traded on NASDAQ under the symbol WAVSU.

This financial maneuver is disclosed in compliance with SEC regulations, and the details provided are based on the information contained in the company’s SEC filing. The promissory notes signify a material definitive agreement that could be pivotal for Western Acquisition Ventures Corp. as it continues to navigate the business landscape and seeks to expand its operations through the proposed business combination with Cycurion Inc.

In other recent news, Western Acquisition Ventures entered into a non-redemption deal with RiverNorth SPAC Arbitrage Fund, LP, in a move aimed at stabilizing its shareholder structure. This agreement ensures the investor will not redeem its existing stake of 99,800 shares prior to an upcoming business combination, and instead will receive an additional 5,000 shares each month for the next three months.

Additionally, Western Acquisition Ventures has made a significant change in its independent registered public accounting firm, transitioning from Marcum LLP to WWC, P.C. This change was reported in a recent SEC filing, with no disagreements or reportable events noted between the company and either accounting firm during the transition period.

Western Acquisition Ventures has also extended its deadline for a business combination to October 11, 2024, following a vote at a virtual special meeting of stockholders. This extension was approved by a vast majority of shares and is accompanied by an amendment to the company’s investment management trust agreement, allowing for the extension of the termination date.

InvestingPro Insights

As Western Acquisition Ventures Corp. (NASDAQ:WAVS) progresses with its business combination strategies, InvestingPro data and tips provide a snapshot of the company’s financial health and market position. With a market capitalization of $36.62 million, the company’s aggressive share buyback initiative stands out as a notable effort to enhance shareholder value. However, investors should be aware of the company’s negative P/E ratio, which currently stands at -86.55, and its adjusted P/E ratio for the last twelve months as of Q1 2024 at -81.94, reflecting challenges in profitability.

Another concern highlighted by InvestingPro Tips is the company’s weak gross profit margins and liquidity issues, as short-term obligations exceed liquid assets. Additionally, with the stock trading near its 52-week low and an InvestingPro Fair Value estimate of $6.07, significantly below the previous close price of $11, investors may want to exercise caution. Notably, the company has not been profitable over the last twelve months and does not pay dividends, which could be a deterrent for income-focused investors.

For those considering an investment in Western Acquisition Ventures Corp., further research and a full list of additional InvestingPro Tips are available to help make a well-informed decision. It’s worth noting that the stock often moves in the opposite direction of the market, which could be leveraged by contrarian investors or those looking to diversify their portfolio with non-correlated assets.

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