Broad Capital Acquisition announces charter, trust agreement amendments

Broad Capital Acquisition announced that its stockholders approved amendments to its charter and trust agreement to change the structure and cost of how BRAC can obtain extensions to the deadline to complete its initial business combination and that BRAC obtained the first of up to nine 1-month extensions of the deadline-from January 13, 2023 to February 13, 2023-by depositing $370,725.50 into its trust account with Continental Stock Transfer and Trust Company. BRAC’s stockholders, at a virtual general meeting of stockholders held January 10, 2023, approved amendments to BRAC’s Amended and Restated Certificate of Incorporation and BRAC’s Investment Management Trust Agreement dated January 10, 2022 with Continental to change how BRAC can obtain extensions to the previously applicable January 13, 2023 deadline to complete its initial business combination. Prior to the amendments, BRAC could obtain up to two 3-month extensions by depositing $1,015,906.90 for each extension into its Trust Account by the deadline applicable prior to the extension. The amendments allow BRAC to instead obtain up to nine 1-month extensions by depositing $0.0625 per outstanding public share into the Trust Account by the deadline applicable prior to the extension. The Charter Amendment triggered a right of BRAC’s public stockholders to demand the redemption of their public shares out of funds held in the Trust Account. Holders of 4,227,461 public shares properly requested redemption leaving 5,931,608 public shares outstanding. After payment of the redemption price to the redeeming public stockholders of approximately $10.25 per share for an aggregate of $43,354,304.31, BRAC will have approximately $60,831,013.71 left in its Trust Account. As a consequence of adoption of the Charter Amendment and the Trust Agreement Amendment and the redemptions, BRAC can now obtain up to nine 1-month extensions to the deadline to complete its initial business combination at a cost of $370,725.50 per extension. In connection with the amendments, BRAC notified Continental that it was exercising its right to obtain the first extension and deposited $370,725.50 into the Trust Account. The Company obtained the funds through a loan from its Sponsor or its designees. The Charter Amendment, Trust Agreement Amendment, and the first extension described above will provide BRAC with additional time to complete a business combination.