Currenc Group Inc. quarterly report, Q3 FY2023

Filing summary

Entity and period: The supplied filing is INFINT Acquisition Corporation’s unaudited Form 10-Q for the quarter and nine months ended September 30, 2023—not a Currenc Group Inc. filing. INFINT was a blank-check company seeking a business combination; it had not commenced operating a business or generated operating revenue.

Financial results and liquidity

MetricQ3 2023 / September 30, 2023Comparable period / prior year-end
RevenueNo operating revenueNo operating revenue
Net income (loss)$679,159 for the quarter; $2,399,326 for nine monthsQuarter: $(202,169); nine months: $(1,648,235), in 2022
Trust-account interest income$1,232,175 for the quarter; $4,082,108 for nine monthsQuarter: $916,262; nine months: $1,210,823, in 2022
Operating costs$553,016 for the quarter; $1,682,782 for nine monthsQuarter: $1,118,431; nine months: $2,859,058, in 2022
Cash and trust assetsOperating cash: $80,473; trust assets: $81,950,013December 31, 2022: operating cash $271,467; trust assets $208,932,880
Liabilities and liquidityTotal liabilities: $10,251,559; working-capital deficit: approximately $4,171,122December 31, 2022 total liabilities: $8,854,324
Cash flowNine-month operating cash use: $440,994Nine-month operating cash use: $523,192, in 2022

The trust account is primarily intended for a business combination and is not available to fund ordinary operating expenses. INFINT reported no long-term debt; it had borrowed $250,000 under a non-interest-bearing sponsor working-capital note. It also had a $5,999,964 deferred underwriter fee payable upon a business combination. The filing does not provide a meaningful operating margin, given the absence of operating revenue.

Changes, transaction status, and outlook

  • Year-to-date net income improved from a loss in 2022, primarily as trust-account interest income rose and operating costs fell. The company’s reported income is therefore not evidence of established operating profitability.
  • Shareholders approved an extension on August 18, 2023, moving the business-combination deadline to February 23, 2024. Redemptions associated with the extension totaled approximately $23.8 million; the trust held approximately $81.1 million afterward and $81.95 million at quarter-end. Earlier, approximately $109.31 million was redeemed in connection with the first extension.
  • INFINT’s proposed transaction with Seamless Group Inc. remained subject to shareholder approval and other closing conditions. The filing describes expected aggregate consideration of $400 million in INFINT ordinary shares, subject to the agreement’s terms. No transaction completion is reported here.
  • Under the extension arrangements, Seamless was to make recurring trust contributions. As of November 17, 2023, total contributions were $640,000, including $320,000 after quarter-end.
  • Management stated that the $80,473 of operating cash might not fund operations for the next 12 months and identified substantial doubt about the company’s ability to continue as a going concern, given the limited cash and approaching liquidation deadline.

Risks, controls, and unusual items

  • Disclosure controls and procedures were deemed ineffective because of a material weakness involving subsequent measurement of complex financial instruments, related to a prior-period restatement. Management described remediation efforts but gave no assurance they would be successful.
  • If INFINT fails to complete a business combination by February 23, 2024, it generally must cease operations, redeem public shares from the trust, and liquidate. Warrants may expire worthless in that event.
  • The filing reports no legal proceedings and no material changes to previously disclosed risk factors. It also states there were no off-balance-sheet financing arrangements.
  • Reporting inconsistency: The financial statements report Q3 operating costs of $553,016, while MD&A states $533,016. The financial statements’ figure reconciles to formation and operating costs plus related-party administrative expenses; investors should verify the discrepancy against the filed statements.

Important facts to verify

  • Confirm the filing identity: the source is for INFINT Acquisition Corporation, not Currenc Group Inc.
  • Check subsequent filings for whether the Seamless transaction closed, was amended, or was terminated, and whether INFINT met the February 23, 2024 deadline.
  • Verify subsequent trust-account balances, extension contributions, redemptions, and the amount available to public shareholders after fees and other obligations.
  • Review the sponsor note’s outstanding balance and repayment or conversion terms, along with the deferred underwriter fee.
  • Track remediation of the material weakness and whether disclosure controls were later assessed as effective.