OceanLight SPAC completes $100M IPO, funds in trust
OceanLight Acquisition Corporation (symbol OCLTU) reports that it completed its SPAC initial public offering on August 10, 2026, issuing 10,000,000 Units at $10.00 each for $100,000,000 of gross proceeds.
Rhea-AI Filing Summary
OceanLight Acquisition Corporation (symbol OCLTU) reports that it completed its SPAC initial public offering on August 10, 2026, issuing 10,000,000 Units at $10.00 each for $100,000,000 of gross proceeds. Simultaneously, the sponsor purchased 211,250 Private Placement Units for $2,112,500. A total of $100,000,000 of net proceeds from the IPO and private placement was deposited into a U.S. Trust Account for the benefit of public shareholders.
The audited balance sheet shows total assets of $100,889,131, including $889,131 of cash outside the Trust Account for working capital and an over-allotment option liability of $139,839. The auditor and management highlight substantial doubt about the company’s ability to continue as a going concern because it must complete a Business Combination by August 10, 2027 or liquidate, and it expects to incur significant costs with limited resources until a transaction is completed.
Positive
- Completion of SPAC IPO raising $100,000,000 in gross proceeds plus $2,112,500 from the sponsor strengthens the company’s cash position.
- Placement of $100,000,000 into a Trust Account for public shareholders provides a defined cash backing for the 10,000,000 public shares.
Negative
- Auditor and management disclose substantial doubt about the company’s ability to continue as a going concern due to its limited cash runway and 12‑month deadline to complete a Business Combination.
- If no Business Combination is completed by August 10, 2027, the company must liquidate and redeem public shares, leaving warrants and rights worthless.
Filing Explained
The IPO is complete, but redemptions and unit-linked share creation remain contingent on the Business Combination outcome.
The completed unit structure includes contingent share rights and warrants: each public unit carries one right convertible into one-fourth of an ordinary share upon a Business Combination and one warrant exercisable for one ordinary share at
If the rights convert or the warrants are exercised, the resulting shares would increase the total share count and reduce an existing holder’s percentage ownership absent offsetting changes; those shares have not been issued under the disclosed mechanics.
As of
Public shareholders may redeem all or part of their public shares when a Business Combination is completed, including whether they vote for or against it. If no Business Combination is completed by
Founder Share and Private Unit holders have demand and piggy-back registration rights after a Business Combination, with the Company responsible for related registration expenses. The combination’s proxy or tender-offer materials, if filed, will determine which redemption process is used and provide the next disclosed mechanics for public holders.
8-K Event Classification
Key Figures
Key Terms
blank check company financial
going concern financial
Trust Account financial
over-allotment option liability financial
temporary equity financial
Public Warrants financial
FAQ
What did OceanLight Acquisition Corp (OCLTU) announce about its IPO?
How much cash does OCLTU have in its Trust Account after the IPO?
What going concern risks does OceanLight Acquisition Corp (OCLTU) disclose?
What is OceanLight’s balance sheet position immediately after the IPO?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
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Registrant’s telephone number, including area code:
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation to the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||
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Stock Market LLC | |||
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Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 8.01. Other Events.
On August 10, 2026, OceanLight Acquisition Corporation (the “Company”) consummated its initial public offering (the “IPO”) of 10,000,000 units (the “Units”). Each Unit consists of one ordinary share of the Company, par value $0.0001 per share (the “Ordinary Shares”), one right to receive one-fourth (1/4) of one Ordinary Share upon the consummation of the Company’s initial business combination, and one redeemable warrant (the “Warrants”), with each whole Warrant entitling the holder thereof to purchase one Ordinary Share at a price of $11.50 per share, subject to adjustment. As a result, an aggregate of 10,000,000 Units were sold at an offering price of $10.00 per Unit, generating total gross proceeds of $100,000,000. The underwriters have a 45-day option from the date of the prospectus to purchase up to an additional 1,500,000 Units from the Company at the IPO price to cover over-allotments, if any.
Simultaneously with the closing of the IPO, OceanLight Capital Sponsor Ltd. (the “Sponsor”) purchased an aggregate of 211,250 private placement units (the “Private Placement Units”) at a price of $10.00 per Private Placement Unit, generating total gross proceeds of $2,112,500. If the underwriters exercise their over-allotment option, the Sponsor has agreed to purchase up to an additional 7,500 Private Placement Units at a price of $10.00 per unit.
A total of $100,000,000 of the net proceeds from the IPO and the sale of the Private Placement Units were placed in a trust account established for the benefit of the Company’s public shareholders and maintained by Continental Stock Transfer & Trust Company, acting as trustee.
An audited balance sheet as of August 10, 2026, reflecting receipt of the proceeds upon consummation of the IPO and the Private Placement, has been issued by the Company and is included as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibits |
| Exhibit No. | Description | |
| 99.1 | Audited Balance Sheet as of August 10, 2026 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
1
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| OceanLight Acquisition Corporation | ||
| Date: August 14, 2026 | By: | /s/ Ping Zhang |
| Name: | Ping Zhang | |
| Title: | Chief Executive Officer | |
2
Exhibit 99.1
OCEANLIGHT ACQUISITION CORPORATION
INDEX TO AUDITED FINANCIAL STATEMENT
| Content | Page | |
| Report of Independent Registered Public Accounting Firm (Firm No. 2485) | F-2 | |
| Balance Sheet as of August 10, 2026 | F-3 | |
| Notes to Financial Statement | F-4 |
F-1
Report of Independent Registered Public Accounting Firm
Shareholders and Board of Directors of
OceanLight Acquisition Corporation
Opinion on the Financial Statement
We have audited the accompanying balance sheet of OceanLight Acquisition Corporation (the “Company”) as of August 10, 2026, and the related notes to the financial statement (collectively referred to as the “financial statement”). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of August 10, 2026, in conformity with accounting principles generally accepted in the United States of America.
Substantial Doubt About the Company’s Ability to Continue as a Going Concern
The accompanying financial statement has been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statement, if the Company does not complete an initial Business Combination within 12 months from the consummation of the IPO (or such later date as may be approved by the Company's shareholders), the Company will trigger an automatic winding up, dissolution and liquidation. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management's plans to address this uncertainty are also described in Note 1. The financial statement does not include any adjustments that might result from the outcome of this uncertainty.
Basis for Opinion
The financial statement is the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion.
/s/ Simon & Edward, LLP
We have served as the Company’s auditor since 2026.
Rowland Heights, California
August 14, 2026
F-2
OCEANLIGHT ACQUISITION CORPORATION
BALANCE SHEET
August 10, 2026
| Assets | ||||
| Current Assets | ||||
| Cash | $ | 889,131 | ||
| Total Current Assets | 889,131 | |||
| Cash held in Trust Account | 100,000,000 | |||
| Total Assets | $ | 100,889,131 | ||
| Liabilities, Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity | ||||
| Current Liabilities | ||||
| Accounts payable and accrued expenses | $ | 104,413 | ||
| Over-allotment option liability | 139,839 | |||
| Total Current Liabilities | 244,252 | |||
| Total Liabilities | 244,252 | |||
| Commitments and Contingencies (Note 6) | ||||
| Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 10,000,000 shares subject to possible redemption | 100,000,000 | |||
| Shareholders’ Equity | ||||
| Ordinary shares, $0.0001 par value, 500,000,000 shares authorized, 5,344,750 shares issued and outstanding(1) (excluding 10,000,000 shares subject to possible redemption) | 534 | |||
| Additional paid-in capital | 688,141 | |||
| Accumulated deficit | (43,796 | ) | ||
| Total Shareholders’ Equity | 644,879 | |||
| Total Liabilities, Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity | $ | 100,889,131 |
| (1) | Includes an aggregate of up to 643,500 shares of ordinary shares subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriters (see Note 5). |
The accompanying notes are an integral part of this financial statement.
F-3
OCEANLIGHT ACQUISITION CORPORATION
NOTES TO FINANCIAL STATEMENT
AUGUST 10, 2026
Note 1 — Organization, Business Operations
OceanLight Acquisition Corporation (the “Company”) is a blank check company incorporated under the laws of the Cayman Islands with limited liability on May 22, 2026. The Company was formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities (“Business Combination”). The Company is not limited to a particular industry or sector for purposes of consummating a Business Combination. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.
As of August 10, 2026, the Company had not commenced any operations. For the period from May 22, 2026 (inception) through August 10, 2026, the Company’s efforts have been limited to organizational activities as well as activities related to completing the initial public offering (“IPO”). The Company will not generate any operating revenues until after the completion of a Business Combination, at the earliest. The Company will generate non-operating income in the form of dividend and/or interest income from the proceeds derived from the IPO and sale of Private Placement Units (as defined below). The Company has selected May 31 as its fiscal year end.
The Company’s sponsor is OceanLight Capital Sponsor Ltd. (the “Sponsor”), a British Virgin Islands business company. The Company’s ability to commence operations is contingent upon obtaining adequate financial resources through the IPO (see Note 3) and Private Placement (as defined below) to the initial shareholder (see Note 4).
The registration statement for the IPO was declared effective on August 7, 2026. On August 10, 2026, the Company consummated its IPO of 10,000,000 units (the “Public Units”). The Public Units were sold at an offering price of $10.00 per unit generating gross proceeds of $100,000,000. Simultaneously with the IPO, the Company sold to its Sponsor 211,250 units at $10.00 per unit (the “Private Units”) in a private placement generating total gross proceeds of $2,112,500, which is described in Note 4.
Transaction costs amounted to $1,766,583, consisting of $500,000 underwriting commissions, which were paid in cash at the closing date of the IPO, $582,597 underwriter expenses, and $683,986 legal and other offering costs. At the IPO date, cash of $889,131 was held outside of the Trust Account (as defined below) and is available for working capital purposes.
The Company’s management has broad discretion with respect to the specific application of the net proceeds of the IPO and the sale of the Private Units, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. There is no assurance that the Company will be able to complete a Business Combination successfully. The Company must complete a Business Combination having an aggregate fair market value of at least 80% of the assets held in the Trust Account (as defined below) (excluding taxes payable on interest earned on the Trust Account) at the time of the agreement to enter into an initial Business Combination. The Company will only complete a Business Combination if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act 1940, as amended (the “Investment Company Act”).
F-4
Following the closing of the IPO on August 10, 2026, an amount of $100,000,000 ($10.00 per Public Unit) from the net proceeds of the sale of the Public Units and the Private Units was placed in the Trust Fund (the “Trust Account”), located in the United States, with Continental Stock Transfer & Trust Company acting as trustee, and invested only in U.S. government treasury obligations with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act which invest only in direct U.S. government treasury obligations. The Trust Fund will be released only in the event of either: (i) the consummation of a Business Combination or (ii) the Company’s failure to complete a Business Combination within the applicable period of time.
The Company will provide its holders of the outstanding Public Shares (the “Public shareholders”) with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a shareholder meeting called to approve the Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek shareholder approval of a Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The Public Shareholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account (initially anticipated to be $10.00 per Public Share, plus any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to pay its franchise and income tax obligations). The Public Shares subject to redemption are recorded at a redemption value and classified as temporary equity in accordance with the Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.”
If the Company seeks shareholder approval, a majority of the shares voted are voted in favor of the Business Combination. If a shareholder vote is not required by law and the Company does not decide to hold a shareholder vote for business or other legal reasons, the Company will, pursuant to its amended and restated memorandum and articles of association, conduct the redemptions pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (“SEC”) and file tender offer documents with the SEC prior to completing a Business Combination. If, however, shareholder approval of the transaction is required by law, or the Company decides to obtain shareholder approval for business or legal reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. Additionally, each public shareholder may elect to redeem their Public Shares irrespective of whether they vote for or against the proposed transaction. If the Company seeks shareholder approval in connection with a Business Combination, the Company’s Sponsor and any of the Company’s officers or directors that may hold Founder Shares (as defined in Note 5) (the “Initial Shareholders”) and the underwriters have agreed (a) to vote their Founder Shares, Private Shares (as defined in Note 4), and any Public Shares purchased during or after the IPO (other than Public Shares purchased outside of a redemption offer which may not be voted in favor of approving the business combination transaction in accordance with the requirements of Rule 14e-5 under the Exchange Act and any SEC interpretations or guidance relating thereto) in favor of approving a Business Combination and (b) not to convert any shares (including the Founder Shares) in connection with a shareholder vote to approve, or sell the shares to the Company in any tender offer in connection with, a proposed Business Combination.
Notwithstanding the foregoing, if the Company seeks shareholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Post-offering Memorandum and Articles of Association provides that a public shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than an aggregate of 15% or more of the Public Shares, without the prior consent of the Company.
The Initial Shareholders have agreed (a) to waive their redemption rights with respect to the Founder Shares, Private Shares, and Public Shares held by them in connection with the completion of a Business Combination and (b) not to propose, or vote in favor of, an amendment to the amended and restated memorandum and articles of association that would affect the substance or timing of the Company’s obligation to redeem 100% of its Public Shares if the Company does not complete a Business Combination, unless the Company provides the public shareholders with the opportunity to redeem their Public Shares in conjunction with any such amendment.
F-5
The Company has 12 months from the consummation of the IPO, or August 10, 2027, to consummate its initial business combination (“Combination Period”). If the Company is unable to complete a Business Combination within the Combination Period, the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account including interest (which interest shall be net of taxes payable, and less up to $50,000 of interest to pay liquidation and dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public shareholders’ rights as shareholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining shareholders and the Company’s board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under Cayman Islands law to provide for claims of creditors and the requirements of other applicable law.
The Sponsor and the other Initial Shareholders have agreed to waive their rights to liquidate distributions from the Trust Account with respect to the Founder Shares, and Private Shares if the Company fails to complete a Business Combination within the Combination Period. However, if the Sponsor or the other Initial Shareholders acquires Public Shares in or after the IPO, such Public Shares will be entitled to liquidating distributions from the Trust Account if the Company fails to complete a Business Combination within the Combination Period.
In order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company if and to the extent any claims by a vendor for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account to below $10.00 per public share, except as to any claims by a third party who executed a valid and enforceable agreement with the Company waiving any right, title, interest or claim of any kind they may have in or to any monies held in the Trust Account and except as to any claims under the Company’s indemnity of the underwriters of IPO against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims.
Going Concern Consideration
As of August 10, 2026, the Company had $889,131 in cash and a working capital of $644,879. The Company has incurred and expects to continue to incur significant costs in pursuit of the consummation of an initial Business Combination. In addition, the Company currently has until August 10, 2027 (unless the Company extends such period by amending its Amended and Restated Memorandum and Articles of Association) to consummate the initial Business Combination. If the Company does not complete a Business Combination within the prescribed timeline, the Company will trigger an automatic winding up, dissolution and liquidation pursuant to the terms of the Amended and Restated Memorandum and Articles of Association. In connection with the Company’s assessment of going concern considerations in accordance with Financial Accounting Standard Board’s Accounting Standards “Codification Subtopic 205-40, Presentation of Financial Statements - Going Concern”, the Company has determined that it has incurred and expects to continue to incur significant costs in pursuit of its acquisition plans. There is no assurance that the Company’s plans to raise capital or to consummate a Business Combination will be successful within the Combination Period. The Company lacks the financial resources it needs to sustain operations for a reasonable period of time, which is considered to be one year from the date of the issuance of the financial statement. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Therefore, management has determined that such additional conditions raise substantial doubt about the Company’s ability to continue as a going concern until the earlier of the consummation of the Business Combination or the date the Company is required to liquidate. The financial statement does not include any adjustments that might result from the Company’s inability to continue as a going concern.
F-6
Note 2 — Significant accounting policies
Basis of Presentation
The accompanying financial statement is presented in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the SEC.
Emerging Growth Company Status
The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended, (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.
Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.
Use of Estimates
In preparing the financial statement in conformity with U.S. GAAP, the Company’s management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported expenses during the reporting period.
Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates.
Cash and Cash Equivalents
The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company had cash of $889,131 and no cash equivalent as of August 10, 2026.
Cash Held in Trust Account
As of August 10, 2026, the assets held in the Trust Account, amounting to $100,000,000, were held in cash.
F-7
Concentration of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Depository Insurance Coverage of $250,000. The Company has not experienced losses on this account and management believes the Company is not exposed to significant risks on such account.
Fair Value of Financial Instruments
The fair value of the Company’s assets and liabilities, which qualify as financial instruments under the Financial Accounting Standards Board (“FASB”) ASC 820, “Fair Value Measurement,” approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.
The Company applies ASC 820, which establishes a framework for measuring fair value and clarifies the definition of fair value within that framework. ASC 820 defines fair value as an exit price, which is the price that would be received for an asset or paid to transfer a liability in the Company’s principal or most advantageous market in an orderly transaction between market participants on the measurement date. The fair value hierarchy established in ASC 820 generally requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the entity’s own assumptions based on market data and the entity’s judgments about the assumptions that market participants would use in pricing the asset or liability and are to be developed based on the best information available in the circumstances.
| ● | Level 1 — Assets and liabilities with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement are observable inputs, such as quoted prices in active markets for identical assets or liabilities. |
| ● | Level 2 — Inputs to the fair value measurement are determined using prices for recently traded assets and liabilities with similar underlying terms, as well as direct or indirect observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals. |
| ● | Level 3 — Inputs to the fair value measurement are unobservable inputs, such as estimates, assumptions, and valuation techniques when little or no market data exists for the assets or liabilities. |
Offering Costs
The Company complies with the requirements of FASB ASC Topic 340-10-S99-1, “Other Assets and Deferred Costs – SEC Materials” (“ASC 340-10-S99”) and SEC Staff Accounting Bulletin Topic 5A, “Expenses of Offering”. Offering costs were $1,766,583 consisting principally of $500,000 cash underwriting fee, $582,597 underwriter expenses, and $683,986 legal and other expenses that are directly related to the IPO. Upon completion of the IPO, the offering costs were allocated between Public Shares, Public Warrants and Public Rights based on their relative fair values. The portion allocated to the Public Shares was recorded as a reduction of the initial carrying amount of ordinary shares subject to possible redemption, and the portion allocated to the Public Warrants and Public Rights were recorded as a reduction of additional paid-in capital.
F-8
Ordinary Shares Subject to Possible Redemption
The Company accounts for its ordinary shares subject to possible redemption in accordance with the guidance in ASC Topic 480, “Distinguishing Liabilities from Equity” (ASC 480). Ordinary shares subject to mandatory redemption (if any) will be classified as a liability instrument and will be measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) will be classified as temporary equity. At all other times, ordinary shares will be classified as stockholders’ equity. In accordance with ASC 480-10-S99, the Company classifies ordinary shares subject to redemption outside of permanent equity as the redemption provisions are not solely within the control of the Company. Given that the 10,000,000 ordinary shares sold as part of the Units in the IPO were issued with other freestanding instruments (i.e., warrants and rights), the initial carrying value of ordinary shares classified as temporary equity has been allocated to the proceeds determined in accordance with ASC 470-20. If it is probable that the equity instrument will become redeemable, the Company has the option to either (i) accrete changes in the redemption value over the period from the date of issuance (or from the date that it becomes probable that the instrument will become redeemable, if later) to the earliest redemption date of the instrument or (ii) recognize changes in the redemption value immediately as they occur and adjust the carrying amount of the instrument to equal the redemption value at the end of each reporting period. The Company has elected to recognize the changes immediately. The initial accretion and subsequent remeasurements will be treated as a deemed dividend (i.e., a reduction to retained earnings, or in absence of retained earnings, additional paid-in capital). Accordingly, as of August 10, 2026, ordinary shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ equity section of the Company’s balance sheet. As of August 10, 2026, the ordinary shares subject to redemption reflected in the balance sheet are reconciled in the following table:
| Gross proceeds | $ | 100,000,000 | ||
| Less: | ||||
| Proceeds allocated to Public Warrants | (1,964,668 | ) | ||
| Proceeds allocated to Public Rights | (4,027,570 | ) | ||
| Public Shares issuance costs | (1,658,822 | ) | ||
| Offering costs allocated to permanent equity | (107,761 | ) | ||
| Proceeds allocated to over-allotment option | (139,839 | ) | ||
| Plus: | ||||
| Remeasurement of carrying value to redemption value | 7,898,660 | |||
| Ordinary shares subject to possible redemption, August 10, 2026 | $ | 100,000,000 |
Warrant Instruments
The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrants’ specific terms and applicable authoritative guidance in ASC 480 and ASC 815. The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ordinary shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding. As of August 10, 2026, there are 10,000,000 Public and 211,250 Private Warrants issued and outstanding.
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Rights Accounting
The Company accounts for rights as either equity-classified or liability-classified instruments based on an assessment of the right’s specific terms and applicable authoritative guidance in ASC 480 and ASC 815. The assessment considers whether the rights are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the rights meet all of the requirements for equity classification under ASC 815, including whether the rights are indexed to the Company’s own ordinary shares and whether the right holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of right issuance and as of each subsequent quarterly period end date while the rights are outstanding.
For issued or modified rights that meet all of the criteria for equity classification, the rights are required to be recorded as a component of equity at the time of issuance. For issued or modified rights that do not meet all the criteria for equity classification, the rights are required to be recorded as liabilities at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the rights are recognized as a non-cash gain or loss on the statements of operations.
As the rights issued upon the closing of the IPO and sale of Private Units meet the criteria for equity classification under ASC 815, therefore, the rights are classified as equity. As of August 10, 2026, there are 10,000,000 Public Rights and 211,250 Private Rights issued and outstanding.
Over-allotment Option Liability
The Company accounts for over-allotment as either equity-classified or liability-classified instrument based on an assessment of the over-allotment option’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the over-allotment option is a freestanding financial instrument pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the over-allotment option meets all of the requirements for equity classification under ASC 815, including whether the over-allotment option is indexed to the Company’s own ordinary shares, among other conditions for equity classification. This assessment is conducted at the time of over-allotment option issuance and as of each subsequent quarterly period end date while the over-allotment option is outstanding.
For over-allotment option that meets all of the criteria for equity classification, it is recorded as a component of additional paid-in capital at the time of issuance. For over-allotment options that do not meet all the criteria for equity classification, they are required to be recorded as a liability at its initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the over-allotment option are recognized as a non-cash gain or loss on the statements of operations.
The Company accounted for the over-allotment option (see Note 8) in accordance with the guidance contained in ASC 815-40. The over-allotment is not considered indexed to the Company’s own ordinary shares, and as such, it does not meet the criteria for equity treatment and is recorded as a liability.
Income Taxes
The Company accounts for income taxes under ASC 740 Income Taxes (“ASC 740”). ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statement and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized.
F-10
ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition. Based on the Company’s evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company’s financial statements.
The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of August 10, 2026. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.
There is currently no taxation imposed on income by the Government of the Cayman Islands. In accordance with Cayman Islands federal income tax regulations, income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s financial statement.
Recent Accounting Pronouncements
In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires the disclosure of additional segment information. ASU No. 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company adopted ASU No. 2023-07 on May 22, 2026, the date of its incorporation (see Note 9).
In December 2023, the FASB issued ASU 2023-09, Income taxes (Topic 740): Improvements to Income Tax Disclosure (“ASU 2023-09”), which enhances the transparency and usefulness of income tax disclosures. ASU 2023-09 will be effective for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The Company adopted ASU 2023-09 on May 22, 2026, the date of its incorporation. Adoption of the ASU did not impact the Company’s financial position, results of operations or cash flows.
Management does not believe that any other recently issued, but not effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial statement.
Note 3 — Initial Public Offering
Pursuant to the IPO on August 10, 2026, the Company sold 10,000,000 Units, at a price of $10.00 per Unit. Each Unit consists of one ordinary share, one right (“Public Right”) and one redeemable warrant (“Public Warrant”). Each Public Right will convert into one-fourth (1/4) of one ordinary share upon the consummation of a Business Combination. Each whole warrant entitles the holder thereof to purchase one ordinary share at a price of $11.50 per full share, subject to adjustment, terms and limitations as provided herein. The Company will not issue fractional shares upon exercise of the warrant, as disclosed in Note 7.
Note 4 — Private Placement
Simultaneously with the closing of the IPO, the Sponsor purchased 211,250 Private Units at a price of $10.00 per Private Unit for an aggregate purchase price of $2,112,500. Each Private Unit consists of one ordinary share (“Private Share”) one right (“Private Right”) and one redeemable warrant (“Private Warrant”). Each Private Right will convert into one-fourth (1/4) of one ordinary share upon the consummation of a Business Combination. Each whole warrant entitles the holder thereof to purchase one ordinary share at a price of $11.50 per full share, subject to adjustment, terms and limitations as provided herein.
F-11
The proceeds from the Private Units will be added to the proceeds from the IPO to be held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period, the proceeds from the sale of the Private Units will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law), and the Private Units and all underlying securities will expire worthless. Private Placement Units and all underlying securities will not be transferable, assignable, or salable until 30 days after the completion of a Business Combination, subject to certain exceptions.
Note 5 — Related Party Transactions
Founder Shares
On May 29, 2026, the Company entered into a subscription agreement with the Sponsor, for the purchase of 4,933,500 ordinary shares for an aggregated consideration of $25,000, or approximately $0.0051 per ordinary share. As of August 10, 2026, there were 4,933,500 Founder Shares issued and outstanding, among which, up to 643,500 shares subject to forfeiture to the extent that the underwriters’ over-allotment is not exercised in full, so that the Sponsor will beneficially own 30% of the Company’s issued and outstanding shares after the IPO (not including the shares to be issued to the underwriter upon the consummation of the IPO or the shares underlying the private placement units and assuming it does not purchase any Public Shares in the IPO and excluding the Private Units).
The Initial Shareholders have agreed, subject to certain limited exceptions, not to transfer, assign or sell any of their Founder Shares for a time period ending on the date that is the earlier of (A) 180 days after the completion of the Company’s initial business combination or (B) the date on which the Company completes a liquidation, merger, stock exchange or other similar transaction after its initial business combination that results in all of the public shareholders having the right to exchange their shares of ordinary shares for cash, securities or other property. The Initial Shareholders also agree not to transfer any ownership interest in, except to permitted transferees, their private placement until at least 30 days following the completion of the business combination.
Promissory Note — Related Party
On May 25, 2026, the Sponsor agreed to loan the Company up to an aggregate amount of $200,000 to be used, in part, for transaction costs incurred in connection with the IPO (the “Promissory Note”). The Promissory Note is unsecured, interest-free and due on the date on which the Company closes the IPO. The outstanding loan balance was repaid upon the closing of the IPO out of the offering proceeds not held in the Trust Account on August 10, 2026. As such, there was no balance outstanding under the Promissory Note as of August 10, 2026.
Administrative Services Agreement
The Company entered into an Administrative Services Agreement with the Sponsor commencing on the effective date of the registration statement of the IPO through the earlier of the consummation by the Company of an initial business combination or the Company’s liquidation, to pay the Sponsor a total of $20,000 per month for office space and administrative and support services. As of August 10, 2026, the Company incurred $2,581 in administrative service fees, of which $1,081 were accrued on the accompanying balance sheet.
F-12
Note 6 — Commitments and Contingencies
Risks and Uncertainties
Various social and political circumstances in the U.S. and around the world (including rising trade tensions between the U.S. and China, and other uncertainties regarding actual and potential shifts in the U.S. and foreign, trade, economic and other policies with other countries), may contribute to increased market volatility and economic uncertainties or deterioration in the U.S. and worldwide.
As a result of these circumstances and the ongoing global conflicts and/or other future global conflicts, the Company’s ability to consummate a Business Combination, or the operations of a target business with which the Company ultimately consummates a Business Combination, may be materially and adversely affected. In addition, the Company’s ability to consummate a transaction may be dependent on the ability to raise equity and debt financing which may be impacted by these events, including as a result of increased market volatility, or decreased market liquidity in third-party financing being unavailable on terms acceptable to the Company or at all. The impact of this action and potential future sanctions on the world economy and the specific impact on the Company’s financial position, results of operations or ability to consummate a Business Combination are not yet determinable. The financial statement does not include any adjustments that might result from the outcome of this uncertainty.
Registration Rights
The holders of the Founder Shares, as well as the holders of the Private Units, the Representative Shares, and any outstanding Ordinary Shares or other equity securities held by a Holder as of the date of the Registration Rights Agreement, together with any equity securities issuable upon conversion of up to $1,500,000 of working capital loans made to the Company by a Holder (including any Ordinary Shares issued or issuable upon conversion of the Private Rights or exercise or conversion of such other equity securities), are entitled to registration rights pursuant to a Registration Rights Agreement entered into on August 7, 2026. The holders of these securities are entitled to make demands that the Company register such securities at any time after the consummation of an initial Business Combination. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the consummation of an initial Business Combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements.
Underwriting Agreement
The Company granted Polaris Advisory Partners (“PAP”), the representative of the underwriters, a 45-day option from the date of this prospectus to purchase up to 1,500,000 additional Units to cover over-allotments, if any, at the IPO price less the underwriting discounts and commissions.
The underwriters were entitled to a cash underwriting discount of 0.50% of the gross proceeds of the IPO, or $500,000. In addition, PAP were entitled to receive ordinary shares equal to 2% of the total number of ordinary shares sold in the IPO, representing an aggregate of 200,000 ordinary shares (the “Representative Shares”), as underwriting compensation in lieu of any deferred underwriting fee in cash. The Representative Shares were issued to PAP (or its designees) upon the closing of IPO and will be subject to the transfer and lock-up restrictions pursuant to FINRA Rule 5110(e)(2).
Right of First Refusal
The Company has granted PAP a right of first refusal for a period commencing from the consummation of the IPO until the earlier of (i) 10 months after the consummation of the initial Business Combination (or the liquidation of the Trust Account in the event that the Company fails to consummate its initial Business Combination within the prescribed time period) or (ii) 36 months after the consummation of the IPO in accordance with FINRA Rule 5110(g)(6)(A) to act as lead financial advisor, capital markets advisor, underwriter and/or private placement agent in connection with any initial business combination or in connection with any financing that occurs between the closing of the IPO and the date that is the earlier of (i) 10 months after the closing of the initial Business Combination or (ii) 36 months after the consummation of the IPO.
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Note 7 — Shareholders’ Equity
Ordinary shares — The Company’s Post-offering Memorandum and Articles of Association is authorized to issue up to 500,000,000 ordinary shares, par value $0.0001 per share. Holders of ordinary shares are entitled to one vote for each share held on all matters to be voted on by the shareholders, except as required by law. On May 29, 2026, the Company entered into a subscription agreement with the Sponsor, for the purchase of 4,933,500 ordinary shares for an aggregated consideration of $25,000, or approximately $0.0051 per ordinary share.
At August 10, 2026, there were 5,344,750 ordinary shares issued and outstanding (consisting of 4,933,500 Founder Shares, 211,250 Private Shares, and 200,000 Representative Shares). Of the Founder Shares, an aggregate of up to 643,500 shares are subject to forfeiture to the extent that the underwriters’ over-allotment option is not exercised in full, so that the Sponsor will own 30% of the issued and outstanding shares after the IPO (assuming the Sponsor does not purchase any public units in the IPO and excluding the Private Shares underlying the Private Units).
Warrants — There were 10,000,000 Public Warrants and 211,250 Private Warrants issued and outstanding as of August 10, 2026. Each whole Public Warrant entitles the registered holder to purchase one Ordinary share at an exercise price of $11.50 per whole share, subject to adjustment as provided in the warrant agreement. The Public Warrants may be exercised only during the period commencing thirty (30) days after the completion of the Company's initial Business Combination, and ending at 5:00 p.m., New York City time, on the earlier of (A) five years following the completion of the Company's initial Business Combination or (B) the liquidation of the Trust Account. The Public Warrants may only be exercised for whole numbers of Ordinary Shares, and no fractional shares will be issued upon exercise.
The Public Warrants may be exercised for cash only while there is an effective registration statement registering Ordinary Shares issuable upon exercise of the Public Warrants and the prospectus contained therein is available for the resale of such shares. If there is no effective registration statement registering the shares of Ordinary share issuable upon exercise of the Public Warrants on any day the holder desires to exercise the Public Warrant and more than 90 days have passed since the completion of the Company’s initial Business Combination, the holder may exercise the Public Warrant on a cashless basis in accordance with the warrant agreement. The Company will not be required to net cash settle any warrant exercise.
The Company has agreed that, as soon as practicable, it will use its best efforts to file with the SEC a registration statement covering Ordinary Shares issuable upon exercise of the Warrants and to cause such registration statement to become effective and maintain its effectiveness, together with a current prospectus relating thereto, until the expiration of the Warrants. The Company has also agreed to use its best efforts to register the shares of Ordinary share issuable upon exercise of the Warrants under applicable state blue sky laws to the extent an exemption is not available.
In addition, if (i) the Company issues additional shares of Ordinary share or equity-linked securities for capital raising purposes in connection with the closing of the initial Business Combination at an issue price or effective issue price of less than $9.20 per share, (ii) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds and interest thereon available for the funding of the initial Business Combination on the date of completion of the initial Business Combination, net of redemptions, and (iii) the volume-weighted average trading price of the Ordinary share during the 20-trading-day period beginning on the trading day prior to the consummation of the initial Business Combination is below $9.20 per share, the exercise price of the Warrants will be adjusted to 115% of the Market Value, in each case as defined in the warrant agreement.
F-14
The Private Warrants are identical to the Public Warrants. The Private Warrants and the shares of Ordinary share issuable upon exercise thereof are subject to restrictions on sale, transfer and assignment for 30 days following the consummation of the Company’s initial Business Combination, except for transfers to permitted transferees.
Rights — There were 10,000,000 Public Rights and 211,250 Private Rights issued and outstanding as of August 10, 2026. Each holder of a right will receive one-fourth (1/4) of one ordinary shares upon consummation of a Business Combination, even if the holder of such right redeemed all shares held by it in connection with a Business Combination. No fractional shares will be issued upon conversion of the rights. No additional consideration will be required to be paid by a holder of rights in order to receive its additional shares upon consummation of a Business Combination, as the consideration related thereto has been included in the Unit purchase price paid for by investors in the Proposed Public Offering. If the Company enters into a definitive agreement for a Business Combination in which the Company will not be the surviving entity, the definitive agreement will provide for the holders of rights to receive the same per ordinary share consideration the holders of the ordinary shares will receive in the transaction on an as-converted into ordinary shares basis and each holder of a right will be required to affirmatively convert its rights in order to receive one-fourth (1/4) of one Ordinary Share underlying each Right (without paying additional consideration). The shares issuable upon conversion of the rights will be freely tradable (except to the extent held by affiliates of the Company).
If the Company is unable to complete a Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of rights will not receive any of such funds with respect to their rights, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with respect to such rights, and the rights will expire worthless. Further, there are no contractual penalties for failure to deliver securities to the holders of the rights upon consummation of a Business Combination. Additionally, in no event will the Company be required to net cash settle the rights. Accordingly, holders of the rights might not receive the shares of ordinary shares underlying the rights.
Note 8 — Fair Value Measurements
Initial Measurement of Over-allotment Option Liability
The following table presents information about the Company’s liabilities that are measured at fair value on August 10, 2026, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:
| As of August 10, 2026 |
Significant Other Unobservable Inputs (Level 3) |
|||||||
| Liabilities: | ||||||||
| Over-allotment option liability | $ | 139,839 | $ | 139,839 | ||||
The over-allotment option was accounted for as a liability in accordance with ASC 815-40 and is presented within liabilities on the balance sheet. The over-allotment liabilities are measured at fair value at inception and on a recurring basis, with changes in fair value presented within change in fair value of over-allotment liabilities in the statement of operations.
F-15
The Company used a Black-Scholes model to value the over-allotment option. The Company allocated the proceeds received from the sale of Units (which is inclusive of one ordinary share, one Right and one redeemable warrant) based on their relative fair values at the initial measurement date. The over-allotment option liabilities were classified within Level 3 of the fair value hierarchy at the measurement dates due to the use of unobservable inputs. Inherent in pricing models are assumptions related to expected share-price volatility, expected life and risk-free interest rate. The Company estimates the volatility of its ordinary share based on historical volatility that matches the expected remaining life of the option. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the option. The expected life of the option is assumed to be equivalent to their remaining contractual term.
The key inputs into the Black-Scholes model were as follows at initial measurement of the over-allotment option:
| Input | As of August 10, 2026 |
|||
| Risk-free interest rate | 4.40 | % | ||
| Expected term (years) | 0.12 | |||
| Expected volatility | 4.60 | % | ||
| Exercise price | $ | 10.00 | ||
| Fair value of over-allotment unit | $ | 0.093 | ||
Initial Measurement of Public Warrants and Public Rights
At the IPO date, the Company determined the initial fair values of the Public Warrants and Public Rights for purposes of allocating the proceeds received from the issuance of the Units. Because the Public Warrants and Public Rights are classified as equity, they are not subsequently remeasured to fair value after issuance. The initial fair values were determined using valuation techniques appropriate for each instrument, as described below.
The estimated initial fair value of the Public Warrants issued in the IPO was $2,000,000, or $0.20 per Public Warrant. The Public Warrants issued in the IPO have been classified within shareholders’ equity and will not require remeasurement after issuance. The following table summarizes the significant assumptions used in estimating the initial fair value of the Public Warrants at the IPO date:
| August 10, 2026 |
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| Estimated market value of ordinary share | $ | 9.39 | ||
| Exercise price | $ | 11.50 | ||
| Expected term to Business Combination | 1 year | |||
| Warrant term | 5 years | |||
| Volatility | 13.42 | % | ||
| Risk-free rate | 4.41 | % | ||
F-16
The estimated initial fair value of the Public Rights issued in the IPO was $4,100,000, or $0.41 per Public Right. The Public Rights issued in the IPO have been classified within shareholders’ equity and will not require remeasurement after issuance. Unlike the Public Warrants, the Public Rights do not contain option-like exercise features. Accordingly, the Company estimated the initial fair value using a probability-weighted expected value model that considers (i) the implied fair value of the underlying ordinary share, (ii) the contractual conversion ratio of one-fourth (1/4) of one ordinary share per Right, and (iii) management’s estimate of the probability of consummating a successful initial Business Combination. The following table summarizes the significant assumptions used in estimating the initial fair value of the Public Rights at the IPO date:
| August 10, 2026 |
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| Implied ordinary share value derived from unit price allocation | $ | 9.59 | ||
| Conversion ratio | 1/4 | |||
| Probability of successful Business Combination | 16.92 | % | ||
Note 9 — Segment Information
ASC Topic 280, “Segment Reporting,” establishes standards for companies to report in their financial statements information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision maker, or group, in deciding how to allocate resources and assess performance. The Company has adopted the guidance in ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, in the accompanying financial statements.
The Company’s chief operating decision maker has been identified as the Chairman, Chief Executive Officer and Chief Financial Officer (“CODM”), who reviews the assets, operating results and financial metrics for the Company as a whole to make decisions about allocating resources and assessing financial performance. Accordingly, management has determined that the Company only has one operating and reportable segment. The CODM reviews the position of total assets available to assess if the Company has sufficient resources available to discharge its liabilities.
The measure of segment assets is reported on the balance sheet as total assets. When evaluating the Company’s performance and making key decisions regarding resource allocation the CODM reviews several key metrics, which include the following:
| August 10, 2026 |
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| Cash | $ | 889,131 | ||
| Cash held in Trust Account | $ | 100,000,000 | ||
The CODM reviews the position of total assets as reported on the Company’s balance sheet to assess if the Company has sufficient resources available to discharge its liabilities. The CODM is provided with details of cash and liquid resources available with the Company. The CODM will review the interest that will be earned and accrued on cash held in Trust Account to measure and monitor shareholder value and determine the most effective strategy of investment with the Trust Account funds while maintaining compliance with the Trust Agreement.
Note 10 — Subsequent Events
The Company evaluated subsequent events and transactions that occurred after the balance sheet date through the date when these financial statements were issued. Based on this review, the Company did not identify any subsequent events that would require adjustment or disclosure in the financial statement.
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