Rising Dragon Acquisition Corp. and HZJL Cayman Limited Announce Mutual Termination of Merger Agreement
Neither side owes a termination fee, while Rising Dragon intends to continue its search for a business combination.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Rising Dragon Acquisition (RDAC) and HZJL Cayman mutually terminated their merger agreement, effective October 30, 2026, with approval from both companies’ boards.
The merger agreement, dated January 27, 2025, also involved Xpand Boom Technology, Xpand Boom Solutions, XB B Limited and Bin Xiong. Under the October 30 termination agreement, no party owes a termination fee to another party. The parties also agreed to release each other from claims relating to the merger agreement and its contemplated transactions, subject to certain exceptions.
Rising Dragon intends to continue pursuing an initial business combination with an appropriate target within the period permitted by its governing documents. Additional termination information will be included in a Form 8-K to be filed with the SEC.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Minor pointNo termination fee is payable by Rising Dragon or any other party.
- Minor point. Forward-looking: it has not happened yet and may not happen.Rising Dragon intends to continue pursuing an initial business combination within the period permitted by its governing documents.
Negative
- Major pointThe HZJL merger agreement was terminated effective October 30, 2026, ending that planned transaction.
Details
Market Reaction – RDAC
On Nov 3, the day this news came out, the latest delayed price for RDAC is 105.10% above the previous close. Argus tracked a peak move of +88.9% during the session. Our momentum scanner has recorded 35 alerts for this stock so far that day. The latest delayed price is $10.46. Relative volume is exceptionally heavy at 334.2x the stock’s average daily volume.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.
Key Figures
- Termination fee
- None required
- Under the termination agreement
- Termination effective date
- October 30, 2026
- Merger agreement termination
Previous Acquisition Reports
-
The original HZJL deal provided 35 million shares, with up to 20 million additional earn-out shares.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
special purpose acquisition company financial
form 8-k regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Rising Dragon to continue to pursue an initial business combination
Taiyuan, China, Nov. 03, 2026 (GLOBE NEWSWIRE) -- Rising Dragon Acquisition Corp. (Nasdaq: RDAC, RDACU, RDACR) (“Rising Dragon” or the “Company”), a special purpose acquisition company, today announced that it and HZJL Cayman Limited (“HZJL”) have mutually agreed, effective as of October 30, 2026, to terminate the Agreement and Plan of Merger, dated January 27, 2025 (the “Merger Agreement”), by and among the Company, Xpand Boom Technology Inc., Xpand Boom Solutions Inc., HZJL, XB B Limited and Bin Xiong.
The termination was approved by the boards of directors of Rising Dragon and HZJL. Under the terms of the termination agreement dated October 30, 2026 (the “Termination Agreement”), no party is required to pay a termination fee to any other party, and the parties have agreed to mutually release each other from claims relating to the Merger Agreement and the transactions contemplated thereby, subject to certain exceptions.
Rising Dragon intends to continue to pursue the consummation of an initial business combination with an appropriate target business within the time period permitted under its amended and restated memorandum and articles of association.
Additional information regarding the termination of the Merger Agreement is included in a Current Report on Form 8-K to be filed by Rising Dragon with the U.S. Securities and Exchange Commission (the “SEC”).
About Rising Dragon Acquisition Corp.
Rising Dragon Acquisition Corp. is a blank check company incorporated as a Cayman Islands exempted company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. The Company completed its initial public offering pursuant to a prospectus dated October 10, 2024.
Forward-Looking Statements
This press release contains certain “forward-looking statements” within the meaning of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, including statements regarding Rising Dragon’s intention to pursue an initial business combination. The words “expect,” “believe,” “estimate,” “intend,” “plan” and similar expressions indicate forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to various risks and uncertainties, including Rising Dragon’s ability to identify a suitable target and complete an initial business combination within the time required by its governing documents, and the other risks and uncertainties described in Rising Dragon’s filings with the SEC, including its initial public offering prospectus dated October 10, 2024, its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Should one or more of these risks or uncertainties materialize, actual results may vary materially from those indicated or anticipated. Forward-looking statements speak only as of the date they are made, and Rising Dragon undertakes no obligation to update them except as required by law.
Contact
Rising Dragon Acquisition Corp.
Woody Shen, Chief Financial Officer
No. 604, Yixing Road, Wanbolin District, Taiyuan City, Shanxi Province, People’s Republic of China 030024
Tel: +86 18817777987
Email: woody.shen@hywincapital.cn
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
When did Rising Dragon and HZJL terminate their merger agreement?
The mutual termination took effect on October 30, 2026. The boards of Rising Dragon and HZJL approved the termination of the merger agreement dated January 27, 2025.
Does Rising Dragon owe a fee for terminating the HZJL merger?
No party is required to pay a termination fee to any other party under the October 30, 2026 termination agreement.