Currenc Group Inc. annual report, FY2021

Business context and reporting period

Important entity mismatch: The supplied filing is for INFINT Acquisition Corporation, not Currenc Group Inc. The summary below describes the filing as provided. It is a Form 10-K for the fiscal year ended December 31, 2021; financial results cover March 8, 2021 (inception) through December 31, 2021.

INFINT was a newly formed blank-check company (SPAC), incorporated to pursue a business combination. It had no operating business or selected target at year-end and expected to focus on financial technology, while stating it did not intend to acquire businesses based in or doing business in China or Hong Kong, or using a China-based VIE structure.

Financial results, liquidity and capital

  • Revenue: None reported; the company expected no operating revenue before a business combination.
  • Net loss: $181,695, comprising $183,619 of formation and operating costs, partly offset by $1,924 of trust-account interest. Basic and diluted loss per share were each $0.02 for both share classes.
  • Cash flow: Cash used in operating activities was $711,252; net cash provided by financing activities was $204.7 million. The company placed $203.0 million in trust.
  • Year-end liquidity: Cash outside the trust was $1,028,183; working capital was approximately $1.56 million. Trust assets were $203,000,706, principally money-market investments and short-term U.S. government securities.
  • Debt and obligations: No long-term debt or working-capital loans were outstanding at year-end. Liabilities included $5,999,964 of deferred underwriting fees, payable upon a completed business combination. The company also paid its Sponsor up to $10,000 per month for administrative support.
  • IPO funding: The November 2021 IPO sold 19,999,880 units at $10 each; private-placement warrants generated an additional $7,796,842. Total gross proceeds were approximately $207.8 million, and $202,998,782 was classified as redeemable Class A shares (temporary equity).
  • Margins and comparable-period changes: Not meaningful for a pre-revenue SPAC; there is no prior comparable operating period presented.

Material changes and unusual items

The company completed its IPO and full over-allotment in November 2021 and began trading publicly. Its only reported activities through year-end were formation, IPO-related work and target-search activities. The filing reports a $4.44 million accumulated deficit, driven largely by the accounting accretion of redeemable shares to their redemption value; this is distinct from the reported $181,695 net loss.

Outlook, risks and contingencies

  • Management believed available working capital and borrowing capacity would cover needs through the earlier of a business combination or one year from the filing. The filing provides no revenue, earnings or operating guidance for a future combined business.
  • The initial business-combination deadline was November 23, 2022, with up to two three-month extensions, each requiring a $2,999,982 Sponsor-related deposit into trust. The extensions were not guaranteed.
  • If no transaction is completed by the deadline, public shares are to be redeemed from trust, subject to creditor claims and other conditions; warrants would expire worthless. The filing estimated redemption value at about $10.15 per public share initially, or $10.45 if both extensions occurred.
  • Key risks include inability to identify or finance a suitable target, shareholder redemptions and dilution, competition and time pressure, conflicts of interest involving the Sponsor and management, and possible trust-account claims. COVID-19 and Russia’s invasion of Ukraine were cited as sources of uncertainty for markets, financing and deal execution.
  • The financial statements received an unqualified audit opinion. The auditor was not engaged to audit internal control over financial reporting; management stated disclosure controls were effective and reported no material fourth-quarter changes to internal controls.
  • No material litigation was reported. The filing says the Sponsor’s ability to satisfy its trust indemnity obligations was not independently verified.

Most important facts for investors to verify

  1. Confirm the intended issuer: this document identifies INFINT Acquisition Corporation, not Currenc Group Inc.
  2. Review the audited financial statements and trust-account terms, including the redeemable-share classification and deferred underwriting fee.
  3. Verify the business-combination deadline, any extension deposits, current trust balance and any subsequent transaction or redemption developments.
  4. Assess Sponsor and management conflicts, potential founder-share conversion dilution, warrant terms and any additional financing needs.
  5. Check whether trust assets could be reduced by creditor claims and whether the Sponsor could meet its indemnification commitment.