Western Acquisition Ventures Adjusts Compensation for CEO McCormick
Western Acquisition Ventures Revamps Executive Compensation Package
Western Acquisition Ventures Corp. (NASDAQ: WAVS), a company focused on providing innovative computer programming services, has announced important updates to its executive compensation agreement. This adjustment, which comes into effect on October 30, modifies terms specifically for James P. McCormick, the President and CEO of the company.
Details of the Compensation Amendment
Under the new terms, McCormick’s total remuneration will be $200,000, structured to include an upfront cash payment of $40,000 upon closure of the company’s business merger with Cycurion, Inc. The balance of $160,000 is to be disbursed from the proceeds of any capital-raising ventures initiated after the merger. This includes opportunities such as tapping into an equity line of credit with Cycurion along with additional investor contributions.
It’s important to note that only a portion—up to 15%—of the proceeds from each capital raise will be directed toward McCormick's total compensation until it is fully disbursed. Details of this amendment are recorded in Exhibit 10.1, which has been filed with the applicable regulating authorities.
Strategic Business Combination Plans
The merger with Cycurion, coupled with the planned capital raises, forms part of a broader strategic initiative for Western Acquisition Ventures. The company’s securities are traded on NASDAQ under the ticker symbols WAVSU, WAVS, and WAVSW, creating various avenues for investment and capital growth.
Recent Strategic Moves by Western Acquisition Ventures
In recent developments, Western Acquisition Ventures Corp. has extended its timeline for the business combination from October 11 to January 11 of the following year, a decision that received overwhelming support from stockholders. Moreover, the company has secured a significant non-redemption agreement with RiverNorth SPAC Arbitrage Fund, LP, ensuring that this investor maintains a substantial holding of 99,800 shares within the company.
The company has also arranged for two notable promissory notes meant to assist in achieving its business combination goals. One note, secured with its sponsor, Western Acquisition Ventures Sponsor LLC, is valued at $255,555.56, while another note created with Cycurion amounts to $210,555.56.
Financial Context and Investor Insights
As the adjustments to executive compensation unfold, it is essential for current and potential investors to grasp the financial surroundings of Western Acquisition Ventures Corp. (NASDAQ: WAVS). The company's current market capitalization is estimated at $40.08 million, indicating its market position amid ongoing developments.
Performance and Obligations Overview
Insights reveal that WAVS has not turned a profit in the past year, which is reinforced by an operating income report revealing a loss of $1.37 million. This financial backdrop underscores the company’s renewed efforts on capital raising activities, particularly to sustain compensation structures for its executives.
Additionally, it is worth noting that WAVS's short-term liabilities surpass its available liquid assets. This condition may pose challenges for the company’s capacity to fulfill immediate financial responsibilities, including the restructured executive compensation package.
Frequently Asked Questions
What changes were made to the executive compensation in Western Acquisition Ventures?
The executive compensation for CEO James P. McCormick has been amended to a total of $200,000, with an immediate cash payment of $40,000 and the rest tied to capital raises.
When will the new compensation terms take effect?
The new compensation terms will be effective from October 30.
What is the significance of the business combination with Cycurion?
The merger with Cycurion is a crucial step in Western Acquisition Ventures' strategy to enhance its market standing and financial stability.
How has Western Acquisition Ventures addressed its financial commitments?
The company has extended its business combination deadline and secured significant non-redemption agreements to strengthen its financial position.
How does Western Acquisition Ventures plan to fund McCormick's compensation?
The compensation for McCormick will be funded through proceeds from future capital-raising activities, with a fraction designated for his payment until the total is fulfilled.
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