Quetta Acquisition Corp, a special purpose acquisition company (SPAC) formed in May 2023, reported its financial performance for the fiscal year ending December 31, 2024, in its recent 10-K filing. The company generated a net income of $2.1 million, primarily from interest income of $3.7 million, offset by general and administrative expenses totaling $623,356. This marks a significant increase from the previous fiscal period, where the company reported a net income of $535,209, driven by interest income of $826,991 against lower expenses.
The company has made strategic moves to position itself for future growth, including entering into a merger agreement with KM QUAD, a Cayman Islands company, on February 14, 2025. This agreement is expected to culminate in a business combination that will see Quetta merge with Quad Global Inc., a wholly-owned subsidiary of Quetta, and subsequently acquire KM QUAD. The total consideration for this acquisition is set at $300 million, payable in newly issued shares valued at $10 each. The merger is subject to regulatory approvals and shareholder consent.
Operationally, Quetta has focused on expanding its acquisition criteria to include entities operating in the People's Republic of China, Hong Kong, and Macau, enhancing its potential target pool. As of the end of 2024, the company had approximately $73.1 million held in trust, which is earmarked for its initial business combination. The company has also extended its deadline to complete this business combination to October 10, 2026, allowing for additional time to finalize the merger with KM QUAD.
Despite these developments, Quetta has faced challenges, including a working capital deficit of $28,329 as of December 31, 2024. The company has indicated that it will continue to incur significant costs related to its public company status and the pursuit of its business combination. Management has expressed concerns regarding its ability to continue as a going concern if the business combination is not completed within the specified timeframe.
Looking ahead, Quetta's management remains optimistic about the potential of the KM QUAD merger and the opportunities it presents in the Asian market, particularly in the financial technology sector. The company aims to leverage its management team's extensive network and experience to identify and execute a successful business combination, which it believes will enhance shareholder value and position the company for long-term growth.
About Quetta Acquisition Corp
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