SEC Filing Summary: Committed Capital Acquisition Corporation
Business Context and Reporting Period
This Form 8-K was filed on June 1, 2011, reporting an event that occurred on May 27, 2011. The registrant is Committed Capital Acquisition Corporation, a special purpose acquisition company (SPAC) incorporated in Delaware. The filing details the entry into a material definitive agreement regarding a promissory note.
Key Financial Metrics
The filing does not provide comprehensive financial statements, revenue, profit, or cash flow data. The primary financial metric disclosed is the issuance of a promissory note with the following characteristics:
- Note Principal: Approximately $120,000.
- Lender: Broadband Capital Management LLC (BCM).
- Interest Rate: 0% (Non-interest bearing).
- Repayment Terms: Payable upon completion of the Company's initial business combination. No payment is required if the business combination is not completed.
- Trust Account Rights: The holder has waived all rights to funds in the trust account funded upon the initial public offering.
Material Changes
The $120,000 note consolidates all previously outstanding accrued interest-related party obligations, related party advances, and notes payable-related party into a single instrument. Additionally, the note provided new advances to the Company beyond the consolidation of existing debt.
Outlook, Risks, and Contingencies
The repayment of the note is contingent upon the successful completion of an initial business combination. The filing outlines specific "Events of Default" that could accelerate repayment:
- Failure to pay principal or other payments within five business days of the due date.
- Voluntary or involuntary bankruptcy or insolvency events.
In the event of a bankruptcy-related default, the note becomes immediately due and payable automatically without notice. For other defaults, the holder must provide notice to declare the note due.
Investor Verification Checklist
- Verify the status of the Company's initial public offering and the funding of the trust account referenced in the waiver.
- Confirm the current progress toward an initial business combination, as this triggers the repayment obligation.
- Review the full text of the Promissory Note (Exhibit 10.1) for any additional covenants not summarized in this report.
- Assess the financial stability of Broadband Capital Management LLC as the sole holder of this consolidated debt.