Uy Scuti Acquisition Corp. issues $1.1 million in promissory notes for merger extension

Uy Scuti Acquisition Corp. (NASDAQ:UYSC) reported Thursday it has issued two unsecured promissory notes totaling $1.1 million to finance extensions related to its pending business combination, according to a statement based on a recent SEC filing.

The company issued a $900,000 promissory note to Isdera HK Limited, an affiliate of Isdera Group Limited, and a $200,000 promissory note to Xinghui Automotive Technology (Hainan) Co., Ltd. The notes were issued on Wednesday to provide funding for transaction costs and to extend the period for completing Uy Scuti’s initial business combination.

The $900,000 note to Isdera HK consolidates two prior loans of $450,000 each, which were deposited into Uy Scuti’s trust account to extend the deadline for a business combination, first to October 1, 2026, and then to January 1, 2027. The $200,000 note to Xinghui Automotive Technology allows the company to borrow up to that amount in one or more installments. As of the issuance date, $135,154 was outstanding under this note.

Both promissory notes are unsecured, bear no interest, and are due upon the closing of Uy Scuti’s proposed merger with Isdera Group Limited. The principal balances may be converted into units of Uy Scuti’s securities at a conversion price of $10.00 per unit, with each unit consisting of one ordinary share and one right to receive one-fifth of an ordinary share. If either noteholder becomes a subsidiary of the acquiring company at closing, the conversion right will terminate, and the balance will be settled through cash repayment, intercompany set-off, or another settlement mechanism.

Uy Scuti Acquisition Corp. is a blank-check company incorporated in the Cayman Islands and listed on the Nasdaq Stock Market under the symbols UYSCU, UYSC, and UYSCR. The stock currently trades at $11.50, above the $10.00 conversion price outlined in the promissory notes, though InvestingPro analysis suggests the shares may be overvalued at current levels.

This report is based on a press release statement filed with the Securities and Exchange Commission.