CSLM Acquisition Corp., a Cayman Islands-based company specializing in computer integrated systems design with a market capitalization of $72.3 million, announced an amendment to its borrowing agreement, raising the borrowing limit from $3 million to $4 million. According to InvestingPro data, the company maintains a Fair financial health rating despite not being profitable over the last twelve months. The amendment, dated May 23, 2025, modifies the 3rd amended and restated promissory note originally issued on February 4, 2025.
The amended note, referred to as "Amendment 1," maintains the original interest rate of 4.75% per annum. The note is payable on the earlier of the date by which the company must complete a business combination or the effective date of such a business combination. With a current ratio of 1.46 and total debt of $2.86 million, InvestingPro analysis suggests the company maintains reasonable financial flexibility for its operations. In the event of a business combination, the outstanding balance can be repaid at the payee’s discretion either in cash or by converting $1,491,000 of the principal and its accrued interest into Class A ordinary shares at a share price of $4.00, with the remaining balance payable in cash at closing.
This financial maneuvering is part of CSLM’s strategic efforts as it navigates the process of a business combination. For deeper insights into CSLM’s financial health metrics and growth potential, investors can access additional analysis through InvestingPro, which offers comprehensive financial data and expert insights. The full details of the amendment can be found in Exhibit 10.1 filed with the Current Report on Form 8-K, which is incorporated by reference into this report. The company, which is classified as an emerging growth company, has not registered any securities pursuant to Section 12(b) of the Securities Exchange Act of 1934.
The information regarding the amendment is based on a press release statement filed with the Securities and Exchange Commission. Investors and interested parties can refer to CSLM Acquisition Corp.’s SEC filings for complete details of the financial arrangements and the potential implications for the company’s future.
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