NEW YORK - Fusemachines Inc., an enterprise AI solutions provider, has entered into a definitive agreement for a business combination with CSLM Acquisition Corp. (NASDAQ: CSLM), a special purpose acquisition company. The deal, expected to close by the end of Q2 2024, will see Fusemachines become a publicly traded company on the Nasdaq under the ticker symbol "FUSE," with an equity valuation of $200M.
The transaction is contingent on the approval of both Fusemachines' and CSLM's stockholders, alongside other customary closing conditions and regulatory approvals. In conjunction with the business combination, CSLM affiliates have pledged to invest up to $19.44M in new PIPE and pre-closing financing to support Fusemachines' working capital requirements.
Founded in 2013 by Dr. Sameer Maskey, an adjunct associate professor at Columbia University, Fusemachines has been a prominent player in the field of Enterprise AI for over a decade. The company provides AI-driven products and solutions, such as AI Studio and AI Engines, and has established a global AI talent pool through its flagship AI Fellowship programs. Fusemachines boasts a client roster that includes TIME and OTG, among others.
Dr. Maskey, CEO and Founder of Fusemachines, expressed that the Nasdaq listing marks a significant milestone for the company and represents a historical moment for Nepalese-origin companies. He emphasized that the partnership with CSLM will enable Fusemachines to strengthen its product offerings and further its growth and global expansion.
Charles Cassel, CEO and CFO of CSLM, highlighted the company's excitement in partnering with Fusemachines, noting their innovative AI development and significant operations in Nepal, which align with CSLM's investment focus on high-growth opportunities in Frontier and Emerging Markets.
The boards of directors of both Fusemachines and CSLM have unanimously approved the business combination. Further details about the proposed transaction are available in CSLM's Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission and on Fusemachines' website.
This news article is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. The actual results could differ materially from those projected due to various factors detailed in the press release.
InvestingPro Insights
As Fusemachines Inc. prepares for its anticipated merger and Nasdaq debut, potential investors might consider the financial health and market sentiment surrounding CSLM Acquisition Corp. (NASDAQ: CSLM), the SPAC facilitating this business combination. According to InvestingPro data, CSLM currently has a market capitalization of $103.72M. The company is not profitable over the last twelve months as of Q1 2023, with a negative P/E ratio (adjusted) of -9.8, signaling that it may not have generated positive earnings per share during this period.
An InvestingPro Tip suggests that CSLM's stock generally trades with low price volatility, which could imply a level of stability in its share price. However, it's important to note that the company suffers from weak gross profit margins, which may affect its financial performance. On the positive side, CSLM's liquid assets exceed its short-term obligations, indicating a solid liquidity position that could support its operational needs in the near term.
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