Bayview Acquisition Corp (NASDAQ: BAYA) saw its stock price drop by 1.4% this week, even though trading volume shot up nearly 4 times its daily average. Over 207,000 shares changed hands, compared to the usual 42,000.
The stock closed at $11.27 after touching a low of $11.20. Just last week, it had closed at $11.42.
The drop in share price comes at a time when Bayview is in the middle of finalizing its merger with Oabay Inc. But there are delays, and investors are starting to pay closer attention.
Bayview Kicks the Can to July
Bayview is a blank check company, also known as a SPAC, which means its entire purpose is to merge with another business. On Friday, the company deposited $100,000 into its trust account to extend its merger deadline by one month.
The new deadline is now July 19, 2025. This is just the first of six possible one-month extensions allowed under its current rules.
To make this extension possible, Bayview issued a $600,000 promissory note to Oabay Inc. and its operating partner, AsiaFactor (CN) Co. Ltd. The note doesn’t carry any interest and will only be paid back once the merger is complete.
Merger Got a Makeover
Bayview also made changes to the structure of the planned merger. According to a revised agreement filed with the SEC, the merger will now happen in stages. First, one of Bayview’s subsidiaries will merge into Oabay, making it part of a new parent company called PubCo.
After that, another part of Bayview will merge into the original Bayview Acquisition entity. The new structure is meant to simplify the process, but has left many investors wanting more clarity.
Shareholders Are Starting to Worry
There are also concerns about Bayview’s financial position. InvestingPro data shows the stock may be overvalued right now.
The company has a very low current ratio, which means it could struggle to meet short-term financial obligations. Its P/E ratio is also high, which usually signals an expensive stock.
Adding to the pressure, law firm Halper Sadeh LLC has opened an investigation into Bayview’s merger activity, citing possible violations of shareholder rights.
With rising interest from hedge funds and institutional investors, this story is still developing. But for now, Bayview has more questions than answers.
