Ace Global Business Acquisition Ltd

Announcement: ACBA 8-K Special Filing

Form 10-Q - Quarterly report [Sections 13 or 15(d)]

Announcement: ACBA 10-Q Quarterly Report

Part 1: Analysis of Performance

Ace Global Business Acquisition Ltd is a blank check company that was incorporated in the British Virgin Islands in November 2020. Their objective is to effect a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization, or similar business combination with one or more target businesses. The company completed an initial public offering in April 2021, with the issuance of 4,000,000 Public Units and 304,000 Private Units, generating gross proceeds of $40,000,000 and $3,040,000, respectively. The underwriters exercised the option in full of 600,000 units at a price of $10.00 per unit, generating gross proceeds of $6,000,000.

As of December 31, 2022, Ace Global Business Acquisition Ltd had cash of $91,432, with $46,920,000 placed in the Trust Account after the public offering. The company had incurred $1,125,000 in initial public offering related costs, including $920,000 of underwriting fees and $205,000 of initial public offering costs. The net proceeds of the initial public offering, including funds held in the Trust Account, will be utilized to acquire a target business or businesses, pay expenses relating thereto, and finance the operations of the target business.

In the year ended December 31, 2022, Ace Global Business Acquisition Ltd had a net income of $1,084,218, while for the year ended December 31, 2021, they had a net loss of $1,002,595. The 2022 net income was due to the change in the fair value of the warrant liability of $1,230,000, dividend earned on the marketable securities held in the Trust Account of $693,058, and interest income of $12, offset by operating costs of $838,852. The 2021 net loss was due to operating costs of $1,024,127, offset by a change in the fair value of the warrant liability of $18,560, dividend earned on the marketable securities held in Trust Account of $2,930, and interest income of $42.

Part 2: Forward-Looking Analysis

There are no specific details about the target business or businesses that Ace Global Business Acquisition Ltd is looking into. The company's efforts to identify a prospective target business will not be limited to any particular industry or geographic location. Therefore, there is a lack of information to make any specific forward-looking predictions for the company's future performance. 

However, it is important to note that the blank check company structure can be risky for investors, as there is no guarantee that Ace Global Business Acquisition Ltd will successfully locate a target business or that the identified target business will successfully merge with the company. The company has an initial 24 months from the consummation of the public offering to complete a business combination, extendable to a maximum of 36 months. 

Overall, potential investors in Ace Global Business Acquisition Ltd should carefully consider the risks and uncertainties of investing in a blank check company that has not yet identified a target business or businesses, incur expenses in the process, and ultimately merge with a company that may not be successful.

Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405]

Ace Global Business: News on $40m IPO & 2022 profits

Form 8-K - Current report - Item 1.01 Item 2.03 Item 8.01 Item 9.01

Form 8-K - Current report - Item 1.01 Item 9.01

JOINDER AGREEMENT DATED AS OF MARCH 2, 2023