Keen Vision Acquisition Corporation Reports Financial Developments, Net Income Turnaround, and Merger Agreement with Medera Inc.

Keen Vision Acquisition Corporation (KVAC), a shell company incorporated on June 18, 2021, reported significant financial developments in its 10-Q filing for the period ending September 30, 2024. The company, which completed its Initial Public Offering (IPO) on July 27, 2023, raised gross proceeds of $149.5 million from the sale of 14,950,000 units, each priced at $10.00. The total net proceeds, including a private placement, amounted to $151.4 million, which has been primarily deposited in a Trust Account for future business combinations.

As of September 30, 2024, KVAC's cash balance had decreased to $40,504 from $631,753 at the end of 2023. Total current assets also fell significantly to $42,988 from $865,615. However, the Trust Account balance increased to $160.9 million from $154.8 million, reflecting a stable investment in U.S. Treasury securities. The company reported total assets of $161.0 million, up from $155.7 million at the end of the previous fiscal year.

KVAC achieved a net income of $1.6 million for the three months ended September 30, 2024, a notable recovery from a net loss of $305,689 in the same period of 2023. For the nine months ended September 30, 2024, the net income was $6.6 million, compared to a net loss of $310,566 in the prior year. This turnaround was attributed to increased interest income from investments held in the Trust Account, which rose to $7.6 million for the nine-month period, compared to just $20 in the previous year.

The company’s total liabilities increased to $3.2 million from $3.0 million, with current liabilities rising sharply from $14,000 to $230,793. The accumulated deficit improved to $(3.2 million) from $(3.7 million) at the end of 2023, although total shareholders’ deficit widened to $(3.2 million) from $(2.1 million).

Strategically, KVAC has entered into a merger agreement with Medera Inc., a clinical-stage biopharmaceutical company, with a valuation of $622.6 million for 100% of Medera’s shares. The merger is part of KVAC's plan to complete a business combination by November 27, 2024, following an extension granted after signing a non-binding letter of intent in March 2024. The company has incurred significant costs related to its financing and acquisition plans, and there is substantial doubt about its ability to continue as a going concern if the business combination is not completed by the deadline.