Blue World Acquisition said it will liquidate the U.S. government treasury obligations and money market funds held in its trust account by Jan. 31 and will hold all the funds in cash at an interest bearing bank demand deposit account.
The determination was made to mitigate the potential risks of being deemed to have been operating as an unregistered investment company for purposes of the Investment Company Act of 1940.
This move follows the sec's 3-2 vote last week to impose broader regulations on SPACs. New regulations include a one-year timeframe granting a temporary exemption from registration as an investment company.
Blue World's trustee will liquidate the U.S. government treasury obligations and money market funds tomorrow, which is the 24-month anniversary of the effective date of the company's IPO prospectus, and to hold all funds in cash at an interest bearing bank account until the earlier of completion of a merger or liquidation.
The SPAC has a deal with Vietnam Sunergy Cell Company Limited (dba TOYO).
Blue World last month was notified by the nasdaq that for the previous 30 consecutive business days, the Market Value of Listed Securities for the SPAC was below the $50 million minimum requirement for continued listing. Blue World has until June 3, 2024 to regain compliance. Read more.