Rising Dragon Acquisition Stock Price, News & Analysis

Rising Dragon Acquisition Corp. (NASDAQ: RDACU) is described as a blank check company and special purpose acquisition company (SPAC) incorporated as a Cayman Islands exempted company with limited liability. According to the company’s public disclosures, it was formed for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities. The company states that its efforts to identify a prospective target business are not limited to a particular industry or geographic region.

The units of Rising Dragon Acquisition Corp. trade on the Nasdaq Capital Market under the symbol RDACU, with the ordinary shares and rights expected to trade separately under the symbols RDAC and RDACR. Each unit consists of one ordinary share and one right, and each right entitles the holder to receive one-tenth of one ordinary share upon the consummation of an initial business combination, as described in the company’s offering announcements.

Corporate structure and purpose

Rising Dragon Acquisition Corp. is organized as a Cayman Islands exempted company. As a blank check company, it does not describe an operating business of its own in the available materials. Instead, its stated objective is to identify and complete a business combination with one or more operating businesses or entities. The company notes that this combination could take various legal forms, including a merger, share exchange, asset acquisition, share purchase, recapitalization, or reorganization.

The company has highlighted that it is not restricted to a specific industry or geographic region when seeking a target, which is typical for many SPACs. This broad mandate allows it to evaluate potential targets across different sectors and locations, subject to shareholder approval and regulatory requirements.

Business combination with HZJL Cayman Limited

Available news reports state that HZJL Cayman Limited announced the execution of an Agreement and Plan of Merger for a business combination with Rising Dragon Acquisition Corp. Under the described structure, a wholly owned subsidiary of Rising Dragon Acquisition Corp., Xpand Boom Technology Inc., is expected to be the listed company on the Nasdaq Capital Market following the transaction, with HZJL becoming a wholly owned subsidiary of Xpand Boom Technology. The transaction is referred to as the Business Combination and remains subject to regulatory approvals, shareholder approvals, and other customary closing conditions.

HZJL is described in the same disclosures as a comprehensive solution provider that empowers local businesses through branding, software application, and supply chain services. The Business Combination is intended to result in HZJL’s business being held under Xpand Boom Technology, which is a wholly owned subsidiary of Rising Dragon Acquisition Corp. before closing. The parties have indicated that, upon closing, they plan to remain Nasdaq-listed under a new ticker symbol.

In connection with the proposed Business Combination, Rising Dragon Acquisition Corp. has also referenced a registration statement on Form F-4, including a proxy statement/prospectus, to be filed with the U.S. Securities and Exchange Commission (SEC). The transaction description in the news is expressly qualified in its entirety by reference to the Merger Agreement and related SEC filings.

Shareholder meetings and process

According to later announcements, Rising Dragon Acquisition Corp. has called an Extraordinary General Meeting of shareholders to consider and vote on proposals related to the proposed business combination with HZJL Cayman Limited. The company has disclosed that this Extraordinary General Meeting was postponed from an earlier date to a later date to provide shareholders with additional time to review the definitive proxy statement and cast their votes. The company also reported that the deadline for delivery of redemption requests from shareholders in connection with the proposed business combination was extended in line with the new meeting date.

The company has emphasized that shareholders of record as of a specified record date are entitled to vote at the Extraordinary General Meeting, even if they have subsequently sold their shares. It has also noted that shareholders who have already submitted proxies and do not wish to change their vote do not need to take further action, and that previously cast votes remain valid unless revoked in accordance with the procedures described in the proxy statement filed with the SEC.

Initial public offering and listing

Rising Dragon Acquisition Corp. announced the pricing and subsequent closing of its initial public offering of units on the Nasdaq Capital Market. The company disclosed that the offering was made pursuant to a registration statement on Form S-1 declared effective by the SEC. The units began trading under the ticker symbol RDACU, with the company indicating that, once the securities comprising the units begin separate trading, the ordinary shares and rights are expected to be listed under the symbols RDAC and RDACR, respectively.

In its offering-related communications, the company reiterated its status as a blank check company newly incorporated as a Cayman Islands exempted company with limited liability, again emphasizing that its efforts to identify a prospective target business will not be limited to a particular industry or geographic region.

Sector and classification

Based on the available descriptions, Rising Dragon Acquisition Corp. falls within the Financial Services sector and is categorized among shell companies or SPACs. Its primary activity, as described in its own materials and related news, is the pursuit and execution of a business combination with one or more operating businesses rather than conducting an operating business itself.

Status considerations

The available information describes a proposed Business Combination between Rising Dragon Acquisition Corp. and HZJL Cayman Limited, along with related shareholder meeting processes and regulatory filings. These announcements indicate an intention to complete a transaction that would result in Xpand Boom Technology Inc., a subsidiary of Rising Dragon Acquisition Corp., becoming a listed company on the Nasdaq Capital Market with HZJL as a wholly owned subsidiary. However, the provided materials describe the transaction as subject to shareholder and regulatory approvals and other customary conditions, and do not state that the Business Combination has been completed. No delisting, deregistration, or bankruptcy filings are mentioned in the supplied information.

Investors and observers using the RDACU overview page can therefore view Rising Dragon Acquisition Corp. primarily as a SPAC whose key focus is the proposed Business Combination with HZJL Cayman Limited, as described in its public announcements and related SEC disclosure references.