Crown PropTech Acquisitions (CPTK) is a special purpose acquisition company (SPAC) formed in September 2020. The company aims to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses in the real estate technology or property technology ("PropTech") sector. As of now, CPTK has not identified a target for its initial business combination.

Business Overview

Crown PropTech Acquisitions was established with the objective of identifying and combining with a promising target company in the PropTech sector. The company's management team possesses extensive experience in the real estate and technology industries, with a proven track record of identifying and executing successful transactions.

The company's sponsors are Crown PropTech Sponsor, LLC and CIIG Management III LLC, both Delaware limited liability companies. These sponsors have provided the initial capital and expertise to launch Crown PropTech Acquisitions.

Since its inception, Crown PropTech Acquisitions has been actively searching for a suitable target company. In November 2021, the company entered into a business combination agreement with Brivo, Inc., a leading provider of cloud-based access control and security solutions. However, in August 2022, Brivo terminated the agreement, and the proposed transaction was called off.

Financials

As a blank check company, Crown PropTech Acquisitions has not generated any revenue. The company's financial performance has focused on the costs associated with its operations and the search for a suitable business combination target.

2022 Financial Performance:

- Net income: $33,836,979 - Gain in fair value of warrant liabilities: $34,680,267 - Annual operating cash flow and free cash flow: -$498,316

Q1 2023 Financial Performance:

- Net income: $604,337 - Trust dividend income: $2,213,036 - Settlement of payables: $777,871 - Operating costs: $1,249,503 - Quarterly operating cash flow and free cash flow: -$509,861

Financial Position (as of June 30, 2023):

- Cash outside trust account: $31,048 - Working capital deficit: $1,658,590 - Trust account balance: $43,906,522 (primarily U.S. government securities and money market funds)

Liquidity

Crown PropTech Acquisitions' liquidity needs have been met through proceeds from its initial public offering, the sale of private placement warrants, and capital contributions from its sponsors. The company's trust account, holding $43,906,522 as of June 30, 2023, is generally unavailable for use prior to an initial business combination.

The company has obtained a convertible promissory note from its former CEO, Richard Chera, amended in May 2023 to have a principal amount of up to $1,000,000, no longer providing for the conversion of the note into warrants.

Risks and Challenges

As a blank check company, Crown PropTech Acquisitions faces several risks: - Potential failure to identify a suitable target company within the required timeframe - Challenges in obtaining necessary financing and shareholder approvals - Impacts of the COVID-19 pandemic on the global economy and potential target companies - Potential adverse effects of the ongoing military conflict between Russia and Ukraine and resulting economic sanctions

Outlook

Crown PropTech Acquisitions has not provided formal guidance for its future performance. The company's success will largely depend on its ability to identify and complete a successful business combination with a target company that can generate sustainable growth and profitability.

The management team remains focused on evaluating potential target companies and exploring opportunities in the PropTech sector. However, no specific plans or timelines for a future business combination have been announced.

Conclusion

Crown PropTech Acquisitions (CPTK) is a blank check company actively searching for a promising target in the PropTech sector. Despite facing setbacks, such as the termination of its proposed business combination with Brivo, the company remains well-capitalized and continues to explore new opportunities. Investors should closely monitor the company's progress as it seeks to identify and execute a successful initial business combination.