Kairous Acquisition Corp. Limited Announces Additional Contribution to Trust Account to Extend Period to Consummate Business Combination

Rhea-AI Summary

On June 17, 2024, Kairous Acquisition Corp. (NASDAQ: KACL) announced an additional $50,000 deposit into its trust account by Kairous Asia , the company's IPO sponsor. This deposit extends the deadline to complete a business combination from June 16, 2024, to July 16, 2024. Kairous Acquisition issued a promissory note to the sponsor for the deposited amount, which will convert to ordinary shares at $10.10 per share upon closing a business combination. The extension aims to provide more time to finalize a business combination.

Positive

• Extension of time to complete a business combination, providing additional opportunities for strategic alignment.
• Promissory note converts to ordinary shares at $10.10 per share, which could potentially benefit shareholders.

Negative

• $50,000 deposit needed to extend the deadline, indicating potential delays in completing the business combination.
• Conversion of promissory note to shares may lead to shareholder dilution.

Singapore, June 17, 2024 (GLOBE NEWSWIRE) -- Kairous Acquisition Corp. Limited (NASDAQ: KACL, the “Company”), a special purpose acquisition company, announced today that Kairous Asia Limited, the Company’s initial public offering sponsor (“Sponsor”), has deposited into the Company’s trust account (the “Trust Account”) an aggregate of $50,000, in order to extend the period of time the Company has to complete a business combination for an additional one (1) month period, from June 16, 2024 to July 16, 2024. The Company issued a promissory note to Sponsor with a principal amount equal to the amount deposited. The promissory note bears no interest and will be converted into the Company’s ordinary shares at a price of $10.10 per share at the closing of a business combination by the Company. The purpose of the extension is to provide time for the Company to complete a business combination.

About Kairous Acquisition Corp. Limited

Kairous Acquisition Corp. Limited is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses.

Forward Looking Statements

This press release includes forward-looking statements that involve risks and uncertainties. Forward looking statements are statements that are not historical facts. Such forward-looking statements, including the successful consummation of the Company’s initial public offering, are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. 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.

Contacts

Kairous Acquisition Corp. Limited
Athiwat Apichote
ir@kairous.com

FAQ

What did Kairous Acquisition Corp. announce on June 17, 2024?

Kairous Acquisition Corp. announced an additional $50,000 deposit to extend the period to complete a business combination to July 16, 2024.

Why did Kairous Acquisition Corp. extend its business combination deadline?

The extension was made to provide more time for Kairous Acquisition Corp. to finalize a business combination.

What is the impact of the $50,000 deposit by Kairous Asia ?

The $50,000 deposit extends the business combination period by one month and will be converted into ordinary shares, potentially leading to shareholder dilution.

At what price will the promissory note convert into shares for Kairous Acquisition Corp. ?

The promissory note will convert into ordinary shares at $10.10 per share upon the closing of a business combination.