Mon, Mar 31, 1:02 PM (27 days ago)
**Cartica Acquisition Corp (CITEU)** is a Cayman Islands exempted company that went public on January 7, 2022, raising $230 million through the sale of 23 million units at $10.00 each. Each unit consists of one Class A ordinary share and one-half of one redeemable warrant. The company also sold 15.9 million private placement warrants to its sponsor at $1.00 each, generating $15.9 million. The total proceeds of $246.8 million were placed in a trust account, with $236.9 million invested in U.S. government securities and $10.30 per unit held in cash. **Financial Performance:** The company reported a net loss of $10.97 million for the year ended December 31, 2024, compared to a net income of $6.38 million in 2023. The loss was primarily due to a change in the fair value of warrant liabilities and operating expenses. The company had cash and marketable securities held in the trust account of $26.36 million as of December 31, 2024. **Revenue:** The company has not generated any revenue since its inception and does not expect to generate any revenue until after the completion of its initial business combination. **Net Income:** The company reported a net loss of $10.97 million for the year ended December 31, 2024, compared to a net income of $6.38 million in 2023. The loss was primarily due to a change in the fair value of warrant liabilities and operating expenses. **Operating Expenses:** The company's operating expenses for the year ended December 31, 2024 were $6.11 million, compared to $2.04 million in 2023. The increase in operating expenses was primarily due to an increase in professional fees and other expenses related to the company's search for a business combination partner. **Earnings per Share:** The company reported a basic and diluted net loss per share of $1.29 for the year ended December 31, 2024, compared to a basic and diluted net income per share of $0.32 in 2023. **Strategic Overview:** The company's strategy is to identify and complete a business combination with a suitable partner focused on the technology space. The company aims to leverage its sponsor's extensive global investment experience and its board's deep-rooted relationships and insights from various markets and business cycles to guide and help the business realize its full potential and achieve sustainable growth. **Future Outlook:** The company has until October 7, 2025, to complete its initial business combination. If the company does not complete a business combination by then, it may seek to extend the combination period consistent with applicable laws, regulations, and stock exchange rules. Such an extension requires the approval of the company's shareholders, who will be provided the opportunity at that time to redeem all or a portion of their public shares. **Risk Factors:** The company faces several risks, including the risk that it may not be able to complete a business combination within the required time frame, the risk that the market for its securities may not continue, and the risk that its financial performance may be negatively affected by the lack of an established record of revenue, cash flows, and experienced management. **Financial Condition:** The company had cash and marketable securities held in the trust account of $26.36 million as of December 31, 2024. The company may withdraw interest from the trust account to pay taxes, if any. The company intends to use substantially all of the funds held in the trust account, including any amounts representing interest earned on the trust account (less income taxes payable), to complete its business combination. **Market Position Changes:** The company's securities were suspended from trading on Nasdaq on January 13, 2025, and are now quoted on the Pink tier of the OTC marketplace under the symbols "CRTUF," "CRTAF," and "CRTWF," respectively. The Pink tier of the OTC is a significantly more limited market than Nasdaq, and quotations on the Pink tier of the OTC may result in a less liquid market available for existing and potential shareholders to trade the public securities and could adversely affect the trading prices of the public securities.