Cetus Capital extends merger agreement to August 5 By Investing.com

Cetus Capital Acquisition Corp. (NASDAQ:CETU), a special purpose acquisition company, announced today an amendment to its merger agreement with MKD Technology Inc., extending the deadline to complete their business combination. The new outside date is set for August 5, 2024, moved from the previous deadline of June 30, 2024.

The extension was formalized through a Sixth Addendum to the Business Combination Agreement, which was executed on June 30, 2024. This move allows for additional time to satisfy closing conditions and finalize the merger with MKD Technology Inc., a Taiwan-based corporation, and its related entities.

Cetus Capital, which specializes in blank check investments, initially disclosed the merger agreement in a June 2023 SEC filing. The deal aims to bring MKD Technology Inc. and MKDWELL Limited, a British Virgin Islands company, together under Cetus Capital’s umbrella. Ming-Chia Huang, representing MKD Taiwan’s shareholders, is also a party to the agreement.

In a related event, Cetus Capital’s stockholders approved an extension amendment to the company’s certificate of incorporation on January 31, 2024. This amendment enables Cetus to extend the period for completing its initial business combination up to August 3, 2024. To support this extension, an additional $50,000 was deposited into the company’s trust account on or about July 3, 2024, marking a one-month extension to the previously agreed-upon timeline.

The extension and the associated deposit are part of the company’s compliance with stockholder-approved terms, which allow for up to six one-month extensions, provided that additional funds are contributed to the trust account for each extension.

The merger, subject to customary closing conditions, is part of Cetus Capital’s strategy to expand its investment portfolio in the technology sector. The combined entity, to be named MKDWELL Tech Inc., has filed relevant materials with the SEC, including a joint prospectus and proxy statement.

As Cetus Capital moves forward with the merger process, investors and stockholders are encouraged to review the company’s SEC filings for further details. This includes the Registration Statement and definitive proxy statement, which outline the business combination and the anticipated benefits of the merger.

InvestingPro Insights

As Cetus Capital Acquisition Corp. (NASDAQ:CETU) progresses towards its merger with MKD Technology Inc., investors are keeping a close eye on the company’s financial metrics and market performance. According to InvestingPro data, Cetus Capital currently holds a market capitalization of $41.14 million and is trading at a high earnings multiple with a P/E ratio of 205.09, signaling a premium valuation by the market. In addition, the company’s stock price is close to its 52-week high, at 96.77% of the peak value. These figures are crucial for investors to consider as they evaluate the potential growth and risks associated with the merger.

InvestingPro Tips also suggest that while Cetus Capital has been profitable over the last twelve months, it does suffer from weak gross profit margins and its short-term obligations exceed its liquid assets, which could be points of concern for potential investors. Moreover, the stock has been identified as being in overbought territory based on the RSI, which may indicate a pullback could be imminent. InvestingPro offers additional insights for those interested in a deeper dive into Cetus Capital’s financials; there are 6 more InvestingPro Tips available for investors at https://www.investing.com/pro/CETUU. For those looking to make the most of these insights, be sure to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.