Cartica Acquisition Corp Releases Q2 2024 10-Q Report Highlighting Business Combination Efforts and Financial Performance
Bacaan 2 minit
Cartica Acquisition Corp, a special purpose acquisition company (SPAC), has released its Form 10-Q report for the second quarter of 2024. The report provides insights into the company's financial performance and ongoing efforts to complete a business combination with Nidar Infrastructure Limited, a data center provider in India. The company is navigating operational challenges while focusing on strategic growth in the data center market for artificial intelligence and high-performance computing.
Financial Highlights
- Net (loss) income: $(3,973,890) for the three months ended June 30, 2024, compared to $3,021,243 for the same period in 2023. The decrease in net income is primarily due to increased operating and formation costs and changes in the fair value of warrant liabilities.
- Net (loss) income: $(7,876,134) for the six months ended June 30, 2024, compared to $5,085,516 for the same period in 2023. This reflects a significant increase in operating and formation costs.
- Basic and diluted net (loss) income per share, Class A ordinary shares subject to redemption: $(0.49) for the three months ended June 30, 2024, compared to $0.11 for the same period in 2023.
- Basic and diluted net (loss) income per share, Class A ordinary shares subject to redemption: $(0.87) for the six months ended June 30, 2024, compared to $0.18 for the same period in 2023.
Business Highlights
- Business Combination Progress: Cartica Acquisition Corp is actively pursuing a business combination with Nidar Infrastructure Limited, a data center provider in India. This merger involves a two-step process where Cartica will first merge with a subsidiary of Nidar, followed by a merger of the surviving entity with Nidar itself.
- Geographical Performance: The company is focusing on expanding its operations in India through the proposed merger with Nidar Infrastructure Limited, which is expected to enhance its presence in the data center market for artificial intelligence and high-performance computing.
- Operational Challenges: The company is facing liquidity challenges with a working capital deficit of $5,426,361 as of June 30, 2024. This has necessitated reliance on promissory notes from the sponsor to fund operations and extend the company's termination date.
- Future Outlook: The company has until January 7, 2025, to complete a business combination. If unsuccessful, it will face mandatory liquidation. Management is focused on completing the merger with Nidar Infrastructure Limited to avoid this outcome.
- Board and Management Changes: Significant changes in the board of directors and management have occurred following a transfer of interests in the sponsor entity. New directors have been appointed, and there have been changes in executive roles to align with the company's strategic direction.
- Regulatory Compliance: The company has successfully addressed compliance issues with Nasdaq listing requirements, ensuring continued trading on the Nasdaq Capital Market. This involved meeting minimum total holder rules and transferring its securities to a different market tier.