Collective Acquisition converts 3.5 million Class B shares to Class A shares

Collective Acquisition Corp. (NASDAQ:CCAQ) disclosed the conversion of 3.5 million Class B ordinary shares into an equivalent amount of Class A ordinary shares via a filing with the Securities and Exchange Commission. This conversion, executed by Collective Acquisition Sponsor LLC, the parent entity, occurred on Thursday. The newly issued Class A shares inherit the same restrictions as their Class B counterparts before conversion, which comprise transfer limitations, a waiver of redemption rights, and a mandate to cast votes in support of a business consolidation, as detailed in the company's comprehensive prospectus released in May 2025.

No financial consideration or cash was expended during the conversion process. Post-transaction, Collective Acquisition Corp. holds 5.12 million Class A ordinary shares and 2.25 million Class B ordinary shares in circulation. Presently, the stock is priced at $10.31, hovering near its 52-week minimum of $10.05 and contributing to a market valuation of $212.85 million.

The converted Class A shares do not adhere to the Securities Act of 1933 and were issued pursuant to an exemption from registration under Section 3(a)(9) of the Act. Classified as a blank-check company incorporated in the Cayman Islands and listed on the Nasdaq Stock Market under different symbols for its various securities, CAAQ's stock appears overvalued according to recent Fair Value assessments.

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