Black Ridge Acquisition Stock Price, News & Analysis

Broad Capital Acquisition Corp. (historically associated with the NASDAQ tickers BRACU, BRAC and BRACR) is a special purpose acquisition company (SPAC) that was formed as a blank check company. According to its public disclosures, its stated purpose was to effect a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses.

The company indicated that, at the time of its initial public offering, it had not selected a business combination target and had not initiated substantive discussions with any potential target. Its stated intention was to focus its search on a target business addressing a large market opportunity in emerging and transformational technologies, with an emphasis on businesses operating within the general aviation and aerospace industry and the unmanned aircraft systems (UAS) sector in particular.

Broad Capital Acquisition Corp. completed an initial public offering of units on the NASDAQ Global Market. Each unit consisted of one share of common stock and one right to receive one-tenth of one share of common stock upon the consummation of an initial business combination. The units traded under the symbol BRACU, with the common stock and rights expected to trade separately under the symbols BRAC and BRACR once the securities comprising the units began separate trading.

As a SPAC, Broad Capital Acquisition Corp. was structured to raise capital in the public markets and then seek a suitable private operating company to combine with, thereby taking that company public. The capital raised in its offering was intended to be used in connection with such a business combination, subject to the terms set out in its registration statement and prospectus.

Subsequent disclosures describe the company’s efforts to pursue an initial business combination. A definitive Agreement and Plan of Merger and Business Combination Agreement was entered into with Openmarkets Group Pty Ltd., an Australian proprietary limited company, and related parties in connection with an initial business combination. A later notice from Openmarkets Group Pty Ltd. stated that this merger agreement was terminated pursuant to a provision of that agreement.

In addition to the termination of the proposed business combination, Broad Capital Acquisition Corp. experienced changes in its trading status. The Nasdaq Stock Market ceased trading of the company’s securities after determining that the company was not in compliance with a Nasdaq listing rule relating to the minimum number of publicly held shares as of a specified date. The Securities and Exchange Commission subsequently filed a Form 25 to delist the company’s securities from Nasdaq.

Following these developments, the company’s board of directors determined that Broad Capital Acquisition Corp. would voluntarily deregister from its reporting requirements with the Securities and Exchange Commission. The board cited the costs and administrative burdens associated with remaining a publicly reporting company, including compliance with SEC, Sarbanes-Oxley and Nasdaq requirements, and concluded that these costs and demands on management time outweighed the benefits of maintaining registered status.

The decision to deregister was implemented through the filing of a Form 15 under the Securities Exchange Act of 1934. In that filing, Broad Capital Acquisition Corp. certified the termination of registration of its securities under Section 12(g) and the suspension of its duty to file reports under Sections 13 and 15(d). The filing identified the classes of securities covered, including units composed of Class A common stock and rights to acquire a fraction of a share of Class A common stock, and noted the approximate number of holders of record as of the certification date.

Broad Capital Acquisition Corp. has been associated with both New York and Texas in its public disclosures. Its initial public offering was announced from New York, while subsequent communications and regulatory filings identify Plano, Texas as the location of its principal executive offices.

Because Broad Capital Acquisition Corp. is a SPAC that pursued but did not complete a business combination and has since delisted its securities and filed to terminate its registration, the BRACU symbol and related tickers primarily represent a historical record of a blank check company’s capital-raising and regulatory history rather than an ongoing operating business.