Berenson Acquisition Corp. I Provides Update Regarding Its Annual Report on Form 10-K

Rhea-AI Summary

Berenson Acquisition Corp. I (NYSE American: BACA) provided an update on its annual report on Form 10-K for the fiscal year ending December 31, 2023. The report, filed on May 31, 2024, includes an audit opinion from its independent accounting firm highlighting concerns about the company’s ability to continue as a going concern. This announcement is in accordance with NYSE American Company Guide Sections 401(h) and 610(b) and does not signify any changes to the company's financial statements or the annual report itself.

Positive

• Compliance with NYSE American guidelines on public disclosure.
• Annual report filed on time with the U.S. Securities and Exchange Commission.

Negative

• Audit opinion includes a going concern explanatory paragraph.
• Concerns about the company's ability to continue as a going concern.

Insights

Financial Analyst

Berenson Acquisition Corp. I has disclosed that its annual report for the fiscal year ending December 31, 2023, includes an audit opinion with a going concern paragraph. This situation raises serious concerns for investors, as it questions the company's ability to sustain its operations in the near future.

From a financial standpoint, a going concern paragraph means that the auditors believe there is substantial doubt about the company's ability to continue for at least the next twelve months. This can stem from several factors such as declining revenues, liquidity issues, or excessive debt. Investors should be cautious as this note can signal potential financial distress, which could lead to actions like restructuring, asset sales, or even bankruptcy.

In the short term, this announcement might negatively affect the stock price as it signals uncertainty and risk to investors. Long-term ramifications depend on how the company addresses these concerns. Transparency about their plans to mitigate these risks can potentially reassure investors.

It's also important to compare industry norms. In the context of Special Purpose Acquisition Companies (SPACs), the going concern note is relatively common given their business model of raising capital and seeking acquisitions. However, it’s a red flag if not followed by strategic plans.

Market Research Analyst

For retail investors, understanding the broader market implications of this news is essential. The market generally reacts sensitively to going concern notices, perceiving them as harbingers of financial instability. It's important to monitor how similar announcements have historically impacted stock prices in the SPAC sector.

While it's true that many SPACs face going concern warnings due to their speculative nature, investors should evaluate the specifics of Berenson Acquisition Corp. I’s financial health and strategy. Key indicators to watch include their cash reserves, upcoming merger targets and management's outlined approach to alleviate financial pressures.

This news can serve as a cautionary tale for retail investors to diversify their portfolios and not overly rely on speculative ventures. In the long run, market perception will heavily depend on the company's actions to mitigate these concerns and any progress towards successful acquisitions.

New York, New York--(Newsfile Corp. - June 3, 2024) - Berenson Acquisition Corp. I (NYSE American: BACA) (the "Company") announced today that, as previously disclosed in its annual report on Form 10-K for the fiscal year ended December 31, 2023, which was filed on May 31, 2024 with the U.S. Securities and Exchange Commission, the audited financial statements contained an audit opinion from its independent registered public accounting firm that included an explanatory paragraph related to the Company's ability to continue as a going concern. This announcement is made pursuant to NYSE American LLC Company Guide Sections 401(h) and 610(b), which require public announcement of the receipt of an audit opinion containing a going concern paragraph. This announcement does not represent any change or amendment to the Company's financial statements or to its Annual Report on Form 10-K for the year ended December 31, 2023.

About Berenson Acquisition Corp. I

The Company is a special purpose acquisition corporation focused on identifying a leading technology-enabled services or software company led by a passionate management team of subject matter experts.

The Company is affiliated with Berenson Holdings LLC ("Berenson"), a merchant bank founded in 1990 with two principal lines of business: investment banking and private equity investing. Berenson was co-founded by Jeffrey Berenson, the former head of M&A and founder and co-head of merchant banking at Merrill Lynch, and is a trusted financial advisor to executives, founders, boards, family offices, financial sponsors, pension funds and government-related entities seeking to drive transformational growth as well as other value creation and preservation initiatives.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Certain of these forward-looking statements can be identified by the use of words such as "believes," "expects," "intends," "plans," "estimates," "assumes," "may," "should," "will," "seeks," or other similar expressions. Such statements may include, but are not limited to, statements regarding the Company's update on the Form 10-K. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Factors that may cause such differences include, without limitation, the Company's ability to continue as a going concern, and other risks and uncertainties indicated from time to time in filings with the Securities and Exchange Commission ("SEC"), including the Form 10-K for the fiscal year ended December 31, 2023, under the heading "Risk Factors," and other documents the Company has filed, or will file, with the SEC. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Contact:
Berenson Acquisition Corp. I
Josh Woodbridge
ir@berensonacquisitioncorp.com
http://www.berensonacquisitioncorp.com

Media Contact:
Prosek Partners
Forrest Gitlin
FGitlin@prosek.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/211514

FAQ

What did Berenson Acquisition Corp. I (BACA) announce on June 3, 2024?

Berenson Acquisition Corp. I provided an update regarding its annual report on Form 10-K, highlighting an audit opinion with concerns about its ability to continue as a going concern.

What financial concern was highlighted in BACA's annual report for the fiscal year ending December 31, 2023?

The audit opinion included an explanatory paragraph indicating concerns about the company's ability to continue as a going concern.

When was BACA's annual report on Form 10-K filed?

BACA filed its annual report on Form 10-K on May 31, 2024.

Does the announcement on June 3, 2024, represent any changes to BACA's financial statements?

No, the announcement does not signify any changes or amendments to the company's financial statements or its annual report for the year ended December 31, 2023.

Why did Berenson Acquisition Corp. I make this announcement?

The announcement was made to comply with NYSE American Company Guide Sections 401(h) and 610(b), which require public disclosure of audit opinions containing a going concern paragraph.