Viveon Acquisition in a press release noted that the auditors of its 10-K report filed at the end of March raised questions about the SPAC’s ability to continue as a going concern.
As of December 31, 2021, the company had $395,235 of cash and cash equivalents held outside the trust account available for working capital.
The SPAC said it has incurred and expects to continue to incur significant costs in pursuit of its acquisition plans. Viveon has a merger agreement with Suneva Medical in a deal that values the combined company at $511 million. Suneva is headquartered in San Diego, CA, and develops regenerative aesthetics solutions.
Viveon shortly before filing its latest annual report announced that it had secured a loan of up to $4 million from its sponsor.
In its annual report, under the first footnote (page F-9), Viveon states that current conditions “raise substantial doubt about the company’s ability to continue as a going concern for a period of time within one year after the date that the financial statements are issued.”
While management still plans to pursue the Suneva deal, “there is no assurance that the company’s plans to consummate the merger will be successful or successful within the combination period.”
The financial statements do not include any adjustments that might result from the outcome of this uncertainty, the SPAC said in the report. Read more.
