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Investing.com -- Spire (NYSE: SR ) Global (NYSE: SPIR) shares plummeted 30% following an SEC filing update regarding its troubled maritime business sale and mounting debt issues. The satellite data company, which had planned to offload its maritime division to Kpler Holding SA for $233.5 million plus additional services, is now entangled in legal proceedings after the buyer failed to close the transaction.

Spire Global announced the expected sale of its maritime business in November 2024, with a projected closing in the first quarter of 2025. However, despite meeting all closing conditions, Kpler Holding has refrained from finalizing the deal, prompting Spire Global to file a complaint in the Delaware Court of Chancery seeking specific performance and a declaratory judgment on the buyer's alleged breach of contract. The outcome of the legal proceedings remains uncertain, casting doubt on the transaction's completion.

Compounding the company's challenges, Spire Global has also delayed filing its Quarterly Reports for the periods ending June 30 and September 30, 2024. The company is actively restating its financial statements for fiscal years 2023 and 2022, as well as for the first quarter of 2024. This failure to meet SEC filing deadlines has triggered non-compliance with NYSE listing standards. Spire Global does not anticipate meeting the NYSE's February 19, 2025, deadline for filing the overdue report and is in discussions with the exchange regarding a potential extension until March 31, 2025.

The delayed transaction and restatement issues have placed Spire Global in a precarious financial position. The company intended to use the proceeds from the maritime business sale to repay its debt under a financing agreement with Blue Torch Finance LLC. With the sale's future uncertain, the company faces the risk of Blue Torch demanding immediate repayment. As of December 31, 2024, Spire Global reported $19.2 million in cash and equivalents, but this may be insufficient to cover its obligations if the transaction fails to close.

In light of these events, Spire Global is exploring various financial strategies, including additional equity or debt financing, seeking waivers or amendments to contractual obligations, and potentially restructuring its business operations. However, there is no guarantee that the company will secure the necessary funding or accommodations, leading to significant doubt about its ability to continue as a going concern over the next 12 months.

Investors are closely monitoring the situation as Spire Global navigates these complex legal and financial challenges, with the company's future hanging in the balance.

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