BUKIT JALIL GLOBAL ACQUISITION 1 LTD. FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2024
Bukit Jalil Global Acquisition 1 Ltd. (the “Company”) filed its quarterly report for the period ended June 30, 2024. The Company reported a net loss of $1.4 million, or $0.28 per share, compared to a net loss of $1.1 million, or $0.22 per share, for the same period in the prior year. The Company’s total assets decreased to $14.3 million as of June 30, 2024, from $16.5 million as of June 30, 2023. The Company’s total liabilities increased to $12.1 million as of June 30, 2024, from $9.4 million as of June 30, 2023. The Company’s cash and cash equivalents decreased to $2.2 million as of June 30, 2024, from $7.1 million as of June 30, 2023. The Company’s management’s discussion and analysis of financial condition and results of operations is included in the report.
Overview
Bukit Jalil Global Acquisition 1 Ltd. is a blank check company formed in the Cayman Islands on September 15, 2022, with the purpose of merging with or acquiring a business. The company completed its initial public offering (IPO) on June 30, 2023, raising $57.5 million by selling 5.75 million units at $10 per unit. Each unit consisted of one ordinary share, one-half of one redeemable warrant, and one right to receive one-tenth of one ordinary share upon completion of the initial business combination.
Recent Developments
On June 29, 2024, the company’s shareholders approved an extension of the deadline to complete a business combination from June 30, 2024 to June 30, 2025, with the ability to extend for up to 12 additional one-month periods. They also approved eliminating the requirement to maintain $5 million in net tangible assets after redemptions.
To fund the extensions, the company’s sponsor, Bukit Jalil Global Investment Ltd., deposited $100,000 into the trust account for each one-month extension, receiving an unsecured promissory note in return.
On August 5, 2024, the company entered into a business combination agreement with GIBO Holdings Limited to acquire Global IBO Group Ltd., a company that provides an AI-powered platform for content creation and distribution. The merger consideration is $8.28 billion.
Results of Operations
- For the three months ended June 30, 2024, the company had net income of $551,806, consisting of $789,818 in interest and dividend income offset by $238,012 in operating costs.
- For the six months ended June 30, 2024, the company had net income of $1,100,267, consisting of $1,570,964 in interest and dividend income offset by $470,697 in operating costs.
- The company has not generated any revenue to date, with its activities focused on searching for a suitable acquisition target.
Liquidity and Capital Resources
- As of June 30, 2024, the company had $54,466 in cash and a working capital deficit of $231,238.
- The company believes these conditions raise substantial doubt about its ability to continue as a going concern and plans to obtain additional funding from related parties to complete a business combination.
- The company intends to use the $61.5 million held in its trust account, along with any additional funds raised, to acquire a target business and pay related expenses.
Critical Accounting Policies
The company’s critical accounting policies include:
- Accounting for investments held in the trust account
- Accounting for warrants as equity or liability instruments
- Accounting for offering costs and share-based compensation
- Accounting for ordinary shares subject to possible redemption
- Accounting for income taxes
Overall, Bukit Jalil Global Acquisition 1 Ltd. is a blank check company that has not yet completed a business combination. It faces substantial doubt about its ability to continue as a going concern but is working to secure additional funding and complete its planned merger with Global IBO Group Ltd.
