Republic Digital Acquisition Co (RDAG) — 10-K

Filed 2026-03-27 · Period ending 2025-12-31 · 54,258 words · SEC EDGAR

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# Republic Digital Acquisition Co (RDAG) — 10-K

**Filed:** 2026-03-27
**Period ending:** 2025-12-31
**Accession:** 0001213900-26-034938
**Source:** [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/2055459/000121390026034938/)
**Origin leaf:** 9f258014a28335bab62a59f95bb5de6464a501a5417965d9e2a52e2ff08f462f
**Words:** 54,258



---

UNITED
STATES 
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 10-K 
(Mark
One)
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
For the fiscal year ended December 31, 2025 
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 
For
the transition period from 
to 
Commission file number: 001-42624 
REPUBLIC DIGITAL ACQUISITION COMPANY 
(Exact
name of registrant as specified in its charter)
| Cayman Islands | | 98-1834128 | |
| 
(Stateorotherjurisdictionof
incorporationororganization) | 
| 
(I.R.S.Employer
IdentificationNo.) | |
| 
| 
| 
| |
| 18 West 18th Street New York, NY | | 10010 | |
| 
(Addressofprincipalexecutiveoffices) | 
| 
(ZipCode) | |
Registrants telephone number, including area code: (585) 910-2306 
Securities
registered pursuant to Section12(b) of the Act:
| 
Titleofeachclass | 
| 
Trading
Symbol(s) | 
| 
Nameofeachexchangeon
whichregistered | |
| Units, each consisting of one Class A Ordinary Share and one-half of one redeemable Warrant | | RDAGU | | The Nasdaq Stock Market LLC | |
| 
| 
| 
| 
| 
| |
| Class A Ordinary Shares, par value $0.0001 per share | | RDAG | | The Nasdaq Stock Market LLC | |
| 
| 
| 
| 
| 
| |
| Redeemable Warrants, each whole Warrant exercisable for one Class A Ordinary Share at an exercise price of $11.50 per share | | RDAGW | | The Nasdaq Stock Market LLC | |
Securities
registered pursuant to Section12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YesNo 
Indicate by check mark if the registrant is not required to file reports pursuant to Section13 or Section15(d) of the Act. YesNo 
Indicate by check mark whether the registrant (1)has filed all reports required to be filed by Section13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)has been subject to such filing requirements for the past 90 days. YesNo 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T ( 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YesNo 
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or an emerging growth company. See the definitions of large accelerated filer, accelerated filer, smaller
reporting company, and emerging growth company in Rule 12b-2 of the Exchange Act.
| 
Largeacceleratedfiler | 
| 
| 
| 
Acceleratedfiler | 
| 
| |
| Non-accelerated filer | | | | Smallerreportingcompany | | | |
| 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 Section13(a) of the Exchange Act. 
Indicate by check mark whether the registrant has filed a report on and attestation to its managements assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. 
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. 
Indicate
by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrants executive officers during the relevant recovery period pursuant to 240.10D-1(b). 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). YesNo 
The aggregate market value of the registrants outstanding Class A Ordinary Shares, other than shares held by persons who may be deemed affiliates of the registrant, computed by reference to the closing price for the Class A Ordinary Shares on June 30, 2025, the last business day of the registrants most recently completed second fiscal quarter, as reported on the Global Market tier of The Nasdaq Stock Market LLC, was $321,000,000. 
As of March 26, 2026, there were 30,000,000 Class A Ordinary Shares, par value $0.0001 per share, and 7,500,000 ClassB Ordinary Shares, par value $0.0001 per share, of the registrant issued and outstanding. 
REPUBLIC
DIGITAL ACQUISITION COMPANY
FORM
10-K FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025
TABLE
OF CONTENTS
| 
| 
PAGE | |
| 
PART
I | 
| 
| |
| 
Item
1. | 
Business. | 
1 | |
| 
Item
1A. | 
Risk
Factors. | 
18 | |
| 
Item
1B. | 
Unresolved
Staff Comments. | 
28 | |
| 
Item
1C. | 
Cybersecurity. | 
28 | |
| 
Item
2. | 
Properties. | 
28 | |
| 
Item
3. | 
Legal
Proceedings. | 
28 | |
| 
Item
4. | 
Mine
Safety Disclosures. | 
28 | |
| 
| 
| 
| |
| 
PART
II | 
| |
| 
Item
5. | 
Market
for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. | 
29 | |
| 
Item
6. | 
[Reserved] | 
29 | |
| 
Item
7. | 
Managements
Discussion and Analysis of Financial Condition and Results of Operations. | 
30 | |
| 
Item
7A. | 
Quantitative
and Qualitative Disclosures About Market Risk. | 
33 | |
| 
Item
8. | 
Financial
Statements and Supplementary Data. | 
33 | |
| 
Item
9. | 
Changes
in and Disagreements with Accountants on Accounting and Financial Disclosure. | 
34 | |
| 
Item
9A. | 
Controls
and Procedures. | 
34 | |
| 
Item
9B. | 
Other
Information. | 
34 | |
| 
Item
9C. | 
Disclosure
Regarding Foreign Jurisdictions that Prevent Inspections. | 
34 | |
| 
| 
| 
| |
| 
PART
III | 
| |
| 
Item
10. | 
Directors,
Executive Officers and Corporate Governance. | 
35 | |
| 
Item
11. | 
Executive
Compensation. | 
40 | |
| 
Item
12. | 
Security
Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. | 
41 | |
| 
Item
13. | 
Certain
Relationships and Related Transactions, and Director Independence. | 
43 | |
| 
Item
14. | 
Principal
Accountant Fees and Services. | 
44 | |
| 
| 
| 
| |
| 
PART
IV | 
| |
| 
Item
15. | 
Exhibit
and Financial Statement Schedules. | 
44 | |
| 
Item
16. | 
Form
10-K Summary. | 
44 | |
| 
| 
| 
| |
| 
SIGNATURES | 
46 | |
i
CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This
Report (as defined below), including, without limitation, statements under Part II, Item 7. Managements Discussion and
Analysis of Financial Condition and Results of Operations, includes forward-looking statements within the meaning of Section
27A of the Securities Act (as defined below) and Section 21E of the Exchange Act (as defined below). These forward-looking
statements can be identified by the use of forward-looking terminology, including the words believe,
estimate, anticipate, expect, intend, plan, may,
will, potential, project, predict, continue,
should, could or would or, in each case, their negative or other variations or comparable
terminology. There can be no assurance that actual results will not materially differ from expectations. Such statements include,
but are not limited to, any statements relating to our ability to consummate any acquisition or other Business Combination (as
defined below) and any other statements that are not statements of current or historical facts. We have based these forward-looking
statements on our Managements (as defined below) current expectations and projections about future events, as well as
assumptions made by, and information currently available to our Management, but actual results may differ materially due to various
factors, including, but not limited to:
| 
| 
| 
our
ability to our ability to select an appropriate target business or businesses; | |
| 
| 
| 
the
pool of prospective target businesses; | |
| 
| 
| 
our
ability to complete our initial Business Combination; | |
| 
| 
| 
our
expectations regarding the potential performance of the prospective target business or businesses; | |
| 
| 
| 
our
success in retaining or recruiting our officers, key employees or directors following our initial Business Combination; | |
| 
| 
| 
our
officers and directors ability to allocate sufficient time to reviewing and considering our initial Business Combination,
including considerations related to potential conflicts of interest; | |
| 
| 
| 
the
potential issues associated with entering into a Business Combination agreement with an acquisition target that subsequently declines
in value or is unprofitable; | |
| 
| 
| 
our
potential ability to obtain additional financing to complete our initial Business Combination, if needed; | |
| 
| 
| 
the
ability of our Management Team (as defined below) to generate and execute on potential acquisition opportunities that will generate value
for our shareholders; | |
| 
| 
| 
our
public securities potential liquidity and trading; | |
| 
| 
| 
our
ability to use proceeds not held in the Trust Account (as defined below) or available to us from interest income on the Trust Account
balance; | |
| 
| 
| 
our
Trust Account potentially being subject to claims of third parties; | |
| 
| 
| 
the
value of the Founder Shares (as defined below) following completion of our initial Business Combination likely being substantially
higher than the nominal price paid for them, even if the trading price of our Public Shares (as defined below) at such time is
substantially less than the Redemption Price (as defined below); | |
| 
| 
| 
the
impact on the amount held in the Trust Account, our capitalization, principal shareholders and other effects on our Company (as defined
below) or Management Team should we seek to extend the Combination Period (as defined below) consistent with applicable laws, regulations
and stock exchange rules; | |
| 
| 
| 
our
financial performance; or | |
| 
| 
| 
the
other risks and uncertainties discussed in Item 1A. Risk Factors below. | |
ii
The
forward-looking statements contained in this Report are based on our current expectations and beliefs concerning future developments
and their potential effects on us. Future developments affecting us may not be those that we have anticipated. These forward-looking
statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual
results or performance to be materially different from those expressed or implied by these forward-looking statements. Should one or
more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material
respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities
laws.
Unless
otherwise stated in this Report, or the context otherwise requires, references to:
| 
| 
| 
Amended
and Restated Articles are to our Amended and Restated Memorandum and Articles of Association, as currently
in effect; | |
| 
| 
| 
ASC
are to the FASB (as defined below) Accounting Standards Codification; | |
| 
| 
| 
ASU
are to the FASB Accounting Standards Update; | |
| 
| 
| 
Audit
Committee are to the audit committee of our Board of Directors (as defined below); | |
| 
| 
| 
Board
of Directors or Board are to our board of directors; | |
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| 
| 
Business
Combination are to a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business
combination with one or more businesses; | |
| 
| 
| 
| |
| 
| 
| 
Cantor
are to Cantor Fitzgerald & Co., the representative of the several underwriters in the Initial Public Offering (as defined below. | |
| 
| 
| 
Certifying
Officers are to our Chief Executive Officer and Chief Financial Officer, together; | |
| 
| 
| 
Class
A Ordinary Shares are to our Class A ordinary shares, par value $0.0001 per share; | |
| 
| 
| 
Class
B Ordinary Shares are to our Class B ordinary shares, par value $0.0001 per share; | |
| 
| 
| 
Clawback
Policy are to our Executive Compensation Clawback Policy, adopted as of April 30, 2025; | |
| 
| 
| 
Code
of Ethics are to the Code of Business Conduct and Ethics we have adopted, which is applicable to our directors, officers and
employees; | |
| 
| 
| 
Combination
Period are to (i) the 24-month period, from the closing of the Initial Public Offering (as defined below) that we have to
consummate an initial Business Combination (or such earlier date as determined by the Board), or (ii) such other period in which
we must consummate an initial Business Combination pursuant to an amendment to the Amended and Restated Articles and consistent with
applicable laws, regulations and stock exchange rules; | |
| 
| 
| 
Companies
Act are to the Companies Act (As Revised) of the Cayman Islands, as may be amended from time to time; | |
| 
| 
| 
Company,
our, we, or us are to Republic Digital Acquisition Company, a Cayman Islands exempted company; | |
| 
| 
| 
Compensation
Committee are to the compensation committee of our Board of Directors; | |
| 
| 
| 
Continental
are to Continental Stock Transfer & Trust Company, trustee of our Trust Account and warrant agent of our Warrants (as defined
below); | |
| 
| 
| 
Deferred
Fee are to the additional fee of 12,720,000 to which the Underwriters (as defined below) are entitled that is payable only
upon our completion of the initial Business Combination; | |
iii
| 
| 
| 
DWAC
System are to the Depository Trust Companys Deposit/Withdrawal At Custodian System; | |
| 
| 
| 
Exchange
Act are to the Securities Exchange Act of 1934, as amended; | |
| 
| 
| 
Excise
Tax are to the U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and
certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023 as provided for
by the Inflation Reduction Act of 2022; | |
| 
| 
| 
FASB
are to the Financial Accounting Standards Board; | |
| 
| 
| 
FINRA
are to the Financial Industry Regulatory Authority; | |
| 
| 
| 
Founder
Shares are to the (i) Class B Ordinary Shares initially purchased by our Sponsor prior to the Initial Public Offering and
(ii) Class A Ordinary Shares that will be issued upon the automatic conversion of the Class B Ordinary Shares (x) at the time of
our Business Combination as described in the IPO Registration Statement (as defined below) or (y) earlier at the option of the holders
thereof, as described in the IPO Registration Statement; for the avoidance of doubt, such Class A Ordinary Shares will not be Public
Shares (as defined below); | |
| 
| 
| 
GAAP
are to the accounting principles generally accepted in the United States of America; | |
| 
| 
| 
IFRS
are to the International Financial Reporting Standards, as issued by the International
Accounting Standards Board. | |
| 
| 
| 
Initial
Public Offering or IPO are to the initial public offering that we consummated on May 1, 2025; | |
| 
| 
| 
Insider
Trading Policy are to the insider trading policies and procedures we have adopted; | |
| 
| 
| 
Investment
Company Act are to the Investment Company Act of 1940, as amended; | |
| 
| 
| 
IPO
Promissory Note are to that certain unsecured promissory note in the principal amount
of up to $300,000 issued to our Sponsor on January 23, 2025; | |
| 
| 
| 
IPO
Registration Statement are to the Registration Statement on Form S-1 initially filed with the SEC (as defined below) on February
28, 2025, as amended, and declared effective on April 30, 2025 (File No. 333-285386); | |
| 
| 
| 
JOBS
Act are to the Jumpstart Our Business Startups Act of 2012; | |
| 
| 
| 
Letter
Agreement are to the Letter Agreement, dated April 30, 2025, which we entered into with our Sponsor and our directors and
officers; | |
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| 
| 
Management
or our Management Team are to our executive officers and our directors; | |
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| 
| 
Nasdaq
are to The Nasdaq Stock Market LLC; | |
| 
| 
| 
Nasdaq
36-Month Requirement are to the requirement pursuant to the Nasdaq Rules (as defined below) that a SPAC (as defined below)
must complete one or more Business Combinations within 36 months following the effectiveness of its initial public offering registration
statement; | |
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| 
| 
Nasdaq
Rules are to the continued listing rules of Nasdaq, as they exist as of the date of this Report; | |
| 
| 
| 
Option
Units are to the 3,600,000 units that were purchased by the Underwriters pursuant to the partial exercise of the Over-Allotment
Option (as defined below); | |
iv
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| 
Ordinary
Resolution are to a resolution of our Company passed by a simple majority of the votes cast by such shareholders as, being
entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting of our Company, or a resolution approved
in writing by all of the holders of the issued shares entitled to vote on such matter (or such lower threshold as may be allowed
under the Companies Act from time to time); | |
| 
| 
| 
Ordinary
Shares are to the Class A Ordinary Shares and the Class B Ordinary Shares, together; | |
| 
| 
| 
Over-Allotment
Option are to the 45-day option that the Underwriters had to purchase up to an additional 3,600,000 Option Units to cover
over-allotments, if any, pursuant to the Underwriting Agreement (as defined below), which was partially exercised; | |
| 
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| 
Private
Placement are to the private placement of Private Placement Warrants (as defined below) that occurred simultaneously with
the closing of our Initial Public Offering, pursuant to the Private Placement Warrants Purchase Agreements (as defined below); | |
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| 
Private
Placement Warrants are to the warrants issued to our Sponsor and Cantor in the Private Placement; | |
| 
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| 
Private
Placement Warrants Purchase Agreements are to the (i) Private Placement Warrants Purchase Agreement, dated April 30, 2025,
which we entered into with our Sponsor and (ii) Private Placement Warrants Purchase Agreement, dated April 30, 2025, which we entered
into with Cantor, together; | |
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| 
| 
Private
Placement Warrants are to the warrants included within the Private Placement Units purchased by our Sponsor and Cantor, in
the Private Placement; | |
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| 
| 
Public
Shareholders are to the holders of our Public Shares, including our Sponsor and Management Team to the extent our Sponsor
and/or the members of our Management Team purchase Public Shares, provided that our Sponsors and each member of our Management
Teams status as a Public Shareholder will only exist with respect to such Public Shares; | |
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| 
Public
Shares are to the Class A Ordinary Shares sold as part of the Public Units in
our Initial Public Offering (whether they were purchased in our Initial Public Offering or thereafter in the open market); | |
| 
| 
| 
Public
Warrants are to the redeemable warrants sold as part of the Units in our Initial Public Offering (whether they were subscribed
for in our Initial Public Offering or purchased in the open market); | |
| 
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| 
Redemption
Price are to the pro rata redemption price
in any redemption we expect to pay, which was approximately $10.26 per Public Share as of December 31, 2025 (before taxes payable,
if any); | |
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| 
Registration
Rights Agreement are to the Registration Rights Agreement, dated April 30, 2025 which we entered into with the Sponsor and
the other holders party thereto; | |
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| 
Report
are to this Annual Report on Form 10-K for the fiscal year ended December 31, 2025; | |
| 
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| 
Sarbanes-OxleyAct
are to the Sarbanes-OxleyAct of 2002; | |
| 
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| 
SEC
are to the U.S. Securities and Exchange Commission; | |
v
| 
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| 
SEC
Clawback Rule are to Rule 10D-1 under the Exchange Act; | |
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| 
Securities
Act are to the Securities Act of 1933, as amended; | |
| 
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| 
SPAC
are to a special purpose acquisition company; | |
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| 
Special
Resolution are to a resolution of our Company passed by at least a two-thirds (2/3) majority of the votes cast by such shareholders
as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting of our Company of which
notice specifying the intention to propose the resolution as a special resolution has been duly given, or a resolution approved in
writing by all of the holders of the issued shares entitled to vote on such matter (or such lower threshold as may be allowed under
the Companies Act from time to time); | |
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Sponsor
are to Republic Sponsor 1 LLC, a Delaware limited liability company; | |
| 
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| 
Trust
Account are to the U.S.-based trust account in which an amount of $300,000,000 from the net proceeds of the sale of the Units
in the Initial Public Offering and the Private Placement Warrants in the Private Placement was placed following the closing of the
Initial Public Offering; | |
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| 
Trust
Agreement are to the Investment Management Trust Agreement, dated April 30, 2025, which we entered into with Continental,
as trustee of the Trust Account; | |
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| 
Underwriters
are to the several underwriters of the Initial Public Offering; | |
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| 
| 
Underwriting
Agreement are to the Underwriting Agreement, dated April 30, 2025, which we entered
into with Cantor, as representative of the Underwriters; | |
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| 
Units
are to the units sold in our Initial Public Offering, which consist of one Public Share and one-half of one Public Warrant; | |
| 
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| 
Warrant
Agreement are to the Warrant Agreement, dated April 30, 2025, which we entered into with Continental,
as Warrant agent; | |
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| 
| 
Warrants
are to the Private Placement Warrantsand the Public Warrants, together; | |
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| 
Withum
are to WithumSmith+Brown, PC, our independent registered public accounting firm; and | |
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| 
| 
Working
Capital Loans are to funds that, in order to provide working capital or finance transaction
costs in connection with a Business Combination, the Sponsor, or an affiliate of the Sponsor, or certain of our directors and officers
may, but are not obligated to, loan us. | |
vi
PART
I
Item 1. Business.
Overview
We
are a blank check company incorporated on January 23, 2025 as a Cayman Islands exempted company and formed for the purpose of effecting
a Business Combination with one or more businesses or entities. We may pursue an initial Business Combination in any business or industry,
although we are focusing our search on industries that complement our Management Teams background in fintech, software and cryptocurrency.
To date, our efforts have been limited to (i) organizational activities, (ii) activities related to our Initial Public Offering, and
(iii) searching for and consummating a Business Combination. As of the date of this Report, we have not selected any specific Business
Combination target. We have generated no operating revenues to date, and we do not expect that we will generate operating revenues until
we consummate our initial Business Combination.
Initial
Public Offering
Our
IPO Registration Statement became effective on April 30, 2025. On May 1, 2025, we consummated our Initial Public Offering of 30,000,000
Units, including 3,600,000 Option Units issued pursuant to the partial exercise of the Over-Allotment Option. Each Unit consists of one
Public Share and one-half of one Public Warrant, with each whole Public Warrant entitling the holder thereof to purchase one Class A
Ordinary Share for $11.50 per share. The Units were sold at a price of $10.00 per Unit, generating gross proceeds to our Company of $300,000,000.
Simultaneously
with the closing of the Initial Public Offering and pursuant to the Private Placement Warrants Purchase Agreements, we completed the
sale of an aggregate of 7,280,000 Private Placement Warrants to the Sponsor and Cantor in the Private Placement at a purchase price of
$1.00 per Private Placement Warrant, generating gross proceeds to us of $7,280,000. Of those 7,280,000 Private Placement Warrants, the
Sponsor purchased 4,640,000 Private Placement Warrants and Cantor purchased 2,640,000 Private Placement Warrants. The Private Placement
Warrants are identical to the Public Warrants, except as otherwise disclosed in the IPO Registration Statement.
A
total of $300,000,000 was initially placed in the Trust Account. We incurred fees of $18,629,500, consisting of $5,280,000 of the initial
underwriting fee, $12,720,000 of the deferred underwriting fee, and $629,500 of other offering costs.
It
is the job of our Sponsor and Management Team to complete our initial Business Combination. Our Management Team is led by Joseph Naggar,
our Chief Executive officer, Rob Urgo, our Chief Financial Officer, and Jonathan Knipper, our Chief Operating Officer, who have deep
expertise in operating, financing, consulting and investing in a variety of industries. We must complete our initial Business Combination
by (i) May 1, 2027, the end of our Combination Period, which is 24 months from the closing of our Initial Public Offering, (ii) such
earlier liquidation date as our Board may approve or (iii) such later date as our shareholders may approve pursuant to the Amended and
Restated Articles. If our initial Business Combination is not consummated by the end of our Combination Period, our existence will terminate,
and we will distribute all amounts in the Trust Account as described elsewhere in this Report.
We
may seek to extend the Combination Period consistent with applicable laws, regulations and stock exchange rules by amending our
Amended and Restated Articles. Any such amendment would require the approval of our shareholders, and our Public Shareholders will be provided the opportunity to redeem all or a portion of their Public Shares in connection with the vote on such approval.
Such redemptions will decrease the amount held in our Trust Account and our capitalization, and may affect our ability to maintain
our listing on Nasdaq. In addition, the Nasdaq Rules currently require SPACs (such as us) to complete their initial Business
Combination in accordance with the Nasdaq 36-Month Requirement. If we do not meet the Nasdaq 36-Month Requirement, our securities
will likely be subject to suspension of trading and delisting from Nasdaq.
Business
Strategy
On October 24, 2025, we ceased
to be affiliated with OpenDeal Inc. (Republic). In connection therewith, (i) Joseph Naggar, our Chief Executive Officer,
Chief Investment Officer and a member of our Board, (ii) Jon Knipper, our Chief Operating Officer, (iii) Darren Sandler, our General Counsel,
and (iv) Armaan Gori, our Vice President, are no longer affiliated with Republic. Andrew Durgee, a member of our Board, continues to serve
as Co-CEO of Republic. James Newman, our Vice President, continues to serve as Fund Manager & EVP of Global Operations of Republic.
We are sponsored by Feynman
Point Asset Management LLC through Republic Sponsor 1 LLC. Although the Companys name includes Republic Digital,
the Company is not sponsored by Republic . The Company is sponsored by Republic Sponsor 1 LLC, which is majority owned by Feynman Point
Asset Management LLC, an independent investment manager, and its affiliates.
1
Our
Management Team, through its affiliate with Feynman Point Asset Management, has experience in digital assets, fund management, traditional
finance, and M&A. Feynman Point Asset Management brings significant knowledge and experience in the Web3 and digital asset management
sectors with numerous years of domain expertise, and has been actively investing in the digital sector since June 2022, and the principals
of Feynman Point Asset Management have been personally investing in the digital sector since 2013.
We
are seeking to capitalize on the operational and investment experience of our Management Team in the fintech, software and cryptocurrency
industries, and to acquire a target company providing advice, support, funding, tools and infrastructure to such assets and businesses.
We believe our Management Teams expertise lends itself well to pursuing such acquisitions, but we are not required to complete
our initial Business Combination with a business in these industries and, as a result, we may pursue a Business Combination outside of
these industries. We are pursuing both domestic and global businesses that have significant growth prospects with the potential to generate
attractive returns for our shareholders. We are focusing on identifying potential target companies with above-industry-averagegrowth,
substantial free cash flow generation, and a defensible market position, where our Management Teams operational or managerial
expertise can assist in maximizing value. If we elect to pursue an investment outside of those industries, our Management Team and advisors
expertise related to those industries may not be directly applicable to its evaluation or operation, and the information contained in
this prospectus regarding that industry might not be relevant to an understanding of the business that we elect to acquire.
Our
Management Team
We
believe our Management Team has the skills and experience to identify, evaluate and consummate a Business Combination and is positioned
to assist businesses we acquire. However, our Management Teams network and investing and operating experience do not guarantee
a successful initial Business Combination. The members of our Management Team are not required to devote any significant amount of time
to our business and are concurrently involved with other businesses. There is no guarantee that our current officers and directors will
continue in their respective roles, or in any other role, after our initial Business Combination, and their expertise may only be of
benefit to us until our initial Business Combination is completed.
Acquisition
Criteria
We
have identified the following general criteria and guidelines that we believe are important in evaluating prospective targets. We use
these criteria and guidelines in evaluating acquisition opportunities, but we may decide to enter into our initial Business Combination
with a target business that does not meet these criteria and guidelines. Qualities we intend to look for in identifying SPAC merger companies
include but are not limited to the following:
| 
| Leadingblockchain-enabledtechnology
with compelling growth prospects. We focus on investments in industry segments that we
believe demonstrate attractive long-termgrowth prospects and reasonable overall size
or potential significant established market position, and domestic and international expansion
potential. | |
| 
| Differentiated
industry disruptors. We seek to identify businesses that are leveraging blockchain to
disrupt their respective industries. We intend to look for companies whose products and services
are defensible and afford a differentiation solution to customers driven by technology. Companies
which could be attractive to us could have a pricing, solution or timing advantage to others
in the marketplace. | |
| 
| Benefit
from access to public markets, and ability to comply with the US regulatory framework.
We intend to pursue a company that will benefit from having public markets available to enhance
their ability to pursue accretive acquisitions, high-returncapital projects, and/or
strengthen their balance sheet, with the capability and commitment to full U.S.financial
market regulation and SEC compliance. | |
| 
| Strong
management teams. We spend significant time assessing a companys leadership and
personnel and evaluating what we can do to augment and/or build the team over time if needed. | |
| 
| Proven
products and revenue. We seek to identify businesses that we believe have market-provenproducts
or service and revenue, and that are reinvesting cash flow to propel growth. | |
| 
| Ability
to sustain and grow free cashflow. We are looking for growing companies which are cashflow
positive and have an ability to show consistent margin integrity. We are attracted to recurring
revenue and platform businesses with efficient customer acquisition and cross selling opportunities. | |
These
criteria are not intended to be exhaustive. Any evaluation relating to the merits of a particular initial Business Combination may be
based, to the extent relevant, on these general guidelines as well as other considerations, factors and criteria that our management
may deem relevant. We may decide to enter into our initial Business Combination with a target business that does not meet the above criteria
and guidelines, and in the event we do so, we will disclose that the target business does not meet the above criteria in our shareholder
communications related to our initial Business Combination, which, as discussed in this prospectus, would be in the form of proxy solicitation
materials or tender offer documents that we would file with the SEC.
2
Initial
Business Combination
We
are not presently engaged in, and we will not engage in, any operations for an indefinite period of time following the Initial Public
Offering. We intend to effectuate our initial Business Combination using cash from the proceeds of the Initial Public Offering and the
Private Placement, the proceeds of the sale of our Ordinary Shares in connection with our initial Business Combination (including pursuant
to any forward purchase agreements or backstop agreements into which we may enter into), shares issued to the owners of the target, debt
issued to bank or other lenders or the owners of the target, other securities issuances, or a combination of the foregoing. We may seek
to complete our initial Business Combination with a company or business that may be financially unstable or in its early stages of development
or growth, which would subject us to the numerous risks inherent in such companies and businesses.
We
will provide our Public Shareholders with the opportunity to redeem all or a portion of their ClassA Ordinary Shares upon the completion
of our initial Business Combination either (i)in connection with a general meeting called to approve the Business Combination or
(ii)without a shareholder vote by means of a tender offer. If we seek shareholder approval, we will complete our initial Business
Combination only if we receive an Ordinary Resolution. The decision as to whether we will seek shareholder approval of a proposed Business
Combination or conduct a tender offer will be made by us, solely in our discretion, and will be based on a variety of factors such as
the timing of the transaction and whether the terms of the transaction would require us to seek shareholder approval under applicable
law or stock exchange listing requirement.
We
have until May 1, 2027 or until such earlier liquidation date as our Board of Directors may approve, to consummate our initial Business
Combination. If we anticipate that we may be unable to consummate our initial Business Combination within such Combination Period, we
may seek shareholder approval to amend our Amended and Restated Articles to extend the date by which we must consummate our initial Business
Combination. There are no limitations as to the duration of an extension or the number of times the Combination Period may be extended
by shareholders via an amendment to our Amended and Restated Articles. If we seek shareholder approval for an extension, our Public Shareholders
will be offered an opportunity to redeem their Public Shares at a per share price, payable in cash, equal to the aggregate amount then
on deposit in the Trust Account, including interest earned thereon (less taxes payable), divided by the number of then issued and outstanding
Public Shares, subject to applicable law.
If
we are unable to complete our initial Business Combination within the Combination Period and do not hold a shareholder vote to amend
our Amended and Restated Articles to extend the Combination Period, or by such earlier liquidation date as our Board of Directors may
approve, we will redeem 100% of 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 earned thereon (less taxes payable and up to $100,000 of interest income to pay dissolution
expenses), divided by the number of then issued and outstanding Public Shares, subject to applicable law as further described herein.
While
the pro rata Redemption Price was $10.26 per Public Share as of December 31, 2025, we cannot assure our shareholders that we will in
fact be able to distribute such amounts as a result of claims of creditors, which may take priority over the claims of our Public Shareholders.
If
we do not complete our initial Business Combination within the Combination Period, while we do not currently intend to seek shareholder
approval to amend our Amended and Restated Articles to extend the Combination Period, we may elect to do so in the future. There is no
limit on the number of extensions that we may seek; however, we do not expect to extend the time period to consummate our initial Business
Combination beyond 36months from the closing of the Initial Public Offering. If we determine not to or are unable to extend the
time period to consummate our initial Business Combination or fail to obtain shareholder approval to extend the Combination Period, our
Sponsors investment in our Founder Shares and our Private Placement Warrants will be worthless.
The
Nasdaq Rules require that we must complete one or more Business Combinations having an aggregate fair market value of at least 80% of
the value of the assets held in the Trust Account (excluding the Deferred Fee and taxes payable on the interest earned on the Trust Account,
and such test, the 80% Test)). Our Board of Directors will make the determination as to the fair market value of our initial
Business Combination. If our Board of Directors is not able to independently determine the fair market value of our initial Business
Combination, we will obtain an opinion from an independent investment banking firm or another independent entity that commonly renders
valuation opinions with respect to the satisfaction of such criteria. While we consider it likely that our Board of Directors will be
able to make an independent determination of the fair market value of our initial Business Combination, it may be unable to do so if
it is less familiar or experienced with the business of a particular target or if there is a significant amount of uncertainty as to
the value of the targets assets or prospects. Additionally, pursuant to the Nasdaq Rules, any initial Business Combination must
be approved by a majority of our independent directors.
3
We
anticipate structuring our initial Business Combination so that the post-transaction company in which our Public Shareholders own shares
will own or acquire 100% of the equity interests or assets of the target business or businesses. We may, however, structure our initial
Business Combination such that the post transaction company owns or acquires less than 100% of such interests or assets of the target
business in order to meet certain objectives of the target management team or shareholders or for other reasons, but we will only complete
such 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. Even if the post transaction company owns or acquires 50% or more of the voting securities of the target,
our shareholders prior to the Business Combination may collectively own a minority interest in the post transaction company, depending
on valuations ascribed to the target and us in the Business Combination. For example, we could pursue a transaction in which we issue
a substantial number of Ordinary Shares in exchange for all of the outstanding capital stock, shares or other equity interests of a target.
In this case, we would acquire a 100% controlling interest in the target. However, as a result of the issuance of a substantial number
of Ordinary Shares, our shareholders immediately prior to our initial Business Combination could own less than a majority of our issued
and outstanding Ordinary Shares subsequent to our initial Business Combination. If less than 100% of the equity interests or assets of
a target business or businesses are owned or acquired by the post-transaction company, the portion of such business or businesses that
is owned or acquired is what will be taken into account for purposes of the 80% Test described above. If the Business Combination involves
more than one target business, the 80% Test will be based on the aggregate value of all of the target businesses.
Members
of our Management Team, directly or indirectly, own Founder Shares and/or Private Placement Warrants and, accordingly, may have a conflict
of interest in determining whether a particular target business is an appropriate business with which to effectuate our initial Business
Combination. The low price that our Sponsor, executive officers and directors (directly or indirectly) paid for the Founder Shares creates
an incentive whereby our officers and directors could potentially make a substantial profit even if we select an acquisition target that
subsequently declines in value and is unprofitable for Public Shareholders. If we are unable to complete our initial Business Combination
within the Combination Period, and do not hold a shareholder vote to amend our Amended and Restated Articles to extend the Combination
Period, or by such earlier liquidation date as our Board of Directors may approve, the Founder Shares and Private Placement Warrants
may expire worthless, except to the extent they receive liquidating distributions from assets outside the Trust Account, which could
create an incentive for our Sponsor, executive officers and directors to complete a transaction even if we select an acquisition target
that subsequently declines in value and is unprofitable for Public Shareholders. Further, each of our officers and directors may have
a conflict of interest with respect to evaluating a particular Business Combination if the retention or resignation of any such officers
and directors was included by a target business as a condition to any agreement with respect to our initial Business Combination.
Each
of our officers and directors presently has, and any of them in the future may have additional, fiduciary, contractual or other obligations
or duties to one or more other entities pursuant to which such officer or director is or will be required to present a Business Combination
opportunity to such entities. Accordingly, if any of our officers or directors becomes aware of a Business Combination opportunity which
is suitable for an entity to which he or she has then current fiduciary or contractual obligations, he or she will honor his or her fiduciary
or contractual obligations to present such Business Combination opportunity to such other entity, subject to their fiduciary duties under
Cayman Islands and any other applicable law. Our Amended and Restated Articles provide that, to the fullest extent permitted by law:
(i)no individual serving as a director or an officer, among other persons, shall have any duty, except and to the extent expressly
assumed by contract, to refrain from engaging directly or indirectly in the same or similar business activities or lines of business
as us, and (ii)we renounce any interest or expectancy in, or in being offered an opportunity to participate in, any potential transaction
or matter which (a)may be a corporate opportunity for any director or officer, on the one hand, and us, on the other or (b)the
presentation of which would breach an existing legal obligation of a director or officer to any other entity. As a result, the fiduciary
duties or contractual obligations of our officers or directors could materially affect our ability to complete our initial Business Combination.
All
of our officers and certain of our directors are employed by, or in a contractual relationship with, FPAM or its affiliates. Each such
entity is continuously made aware of potential business opportunities, one or more of which we may desire to pursue for an initial Business
Combination. While none of such entities will have any duty to offer acquisition opportunities to us, each of them may become aware of
a potential transaction that is an attractive opportunity for us, which they may decide to share with us. In addition, our officers and
directors may have a duty to search for and offer acquisition opportunities to such other entities to which they owe duties, or to clients
of affiliates of our Sponsor (including FPAM) or our officers or directors.
FPAM
As
a result, affiliates of our Sponsor, officers or directors (including FPAM) and their respective clients may compete with us for acquisition
opportunities in the same industries and sectors as we may target for our initial Business Combination. If any of them decide to pursue
any such opportunity, we may be precluded from procuring such opportunity. In addition, investment ideas generated within FPAM including
by any of our officers and other persons who may make decisions for our Company, may be suitable both for us and for affiliates of our
Sponsor, officers or directors or any of their respective clients, and will be directed initially to such persons rather than to us,
subject to the fiduciary duties of our directors and officers under Cayman Islands Law. Neither FPAM nor members of our Management Team
who are also employed by FPAM or any of their affiliates have any obligation to present us with any opportunity for a potential Business
Combination of which they become aware unless it is offered to them solely in their capacity as a director or officer of our company
and such opportunity is one we are permitted to undertake and would otherwise be reasonable for us to pursue, subject to their contractual
and fiduciary obligations to other parties.
Conflicts
may arise from FPAMs affiliation with us, its or its affiliates provision of services both to us and to third-partyclients,
as well as from actions undertaken by FPAM for their own account. FPAM is often engaged as a financial advisor, or placement agent, to
corporations and other entities and their directors and managers in connection with the sale of those entities, their assets or their
subsidiaries. Alternatively, FPAM, or another affiliate of our Sponsor, may be a financial or other type of advisor to a target business
that we pursue a Business Combination with and FPAM, or another affiliate of our Sponsor, may receive fees from the target business in
connection with a Business Combination. FPAM also represents potential buyers businesses and may be incentivized or obligated
to direct an opportunity to one of these buyers in lieu of us, thereby eliminating or reducing the investment opportunities available
to us.
4
Our
Sponsor (including its members), officers or directors or their respective affiliates may sponsor or form other special purpose acquisition
companies similar to ours or may pursue other business or investment ventures during the period in which we are seeking an initial Business
Combination. As a result, our Sponsor (including its members), officers and directors or their respective affiliates could have conflicts
of interest in determining whether to present Business Combination opportunities to us or to any other special purpose acquisition company
with which they may become involved. Any such companies, businesses or investments may present additional conflicts of interest in pursuing
an initial Business Combination target, which could materially affect our ability to complete our initial Business Combination.
Potential
Additional Financings
We
may need to obtain additional financing to complete our initial Business Combination, either because the transaction requires more cash
than is available from the proceeds held in our Trust Account or because we become obligated to redeem a significant number of our Public
Shares upon completion of the Business Combination, in which case we may issue additional securities or incur debt in connection with
such Business Combination. If we raise additional funds through equity or convertible debt issuances, our Public Shareholders may suffer
significant dilution and those securities could have rights that rank senior to our Public Shares. If we raise additional funds through
the incurrence of indebtedness, such indebtedness would have rights that are senior to our equity securities and could contain covenants
that restrict our operations. We may also obtain financing prior to the closing of our initial Business Combination to fund our working
capital needs and transaction costs in connection with our search for and completion of our initial Business Combination. There is no
limitation on our ability to raise funds through the issuance of equity or equity-linkedsecurities or through loans, advances or
other indebtedness in connection with our initial Business Combination, including pursuant to any forward purchase agreements or backstop
agreements into which we may enter. If we are unable to complete our initial Business Combination because we do not have sufficient funds
available to us, we will be forced to liquidate the Trust Account. In addition, following our initial Business Combination, if cash on
hand is insufficient, we may need to obtain additional financing in order to meet our obligations.
Sponsor
Information
Our
Sponsor is a Delaware limited liability company, which was recently formed to invest in our company. Although our Sponsor is permitted
to undertake any activities permitted under the Delaware Limited Liability Company Act and other applicable law, our Sponsors
business is focused on investing in our company. Feynman Point Cayman LLC, is the sole managing member of Republic Sponsor 1 LLC and
holds voting and investment discretion with respect to the Ordinary Shares held of record by the Sponsor.
Feynman Point Cayman Manager
LLC is the manager of Feynman Point Cayman LLC, and our Chief Operating Officer, Jonathan Knipper, is the sole manager of Feynman Point
Cayman Manager LLC. All of our officers and directors are members of our Sponsor. As of the date of this Report, other than Feynman Point
Cayman LLC and our officers, directors and advisor, no other person has a direct or indirect material interest in our Sponsor. Members
of our management team (along with Feynman Point Cayman LLC) collectively hold an indirect interest in an aggregate of 4,254,371 Founder
Shares through the purchase of membership interests in our Sponsor (or approximately 56.7% of the outstanding Founder Shares). In addition
to this, each of our directors received an indirect membership interest in our Sponsor of 25,000 Founder Shares for his or her service
as a director (or approximately 1.7% of the outstanding Founder Shares). Funds, affiliates and employees of FPAM who are not members of
our management team, as well as other third-party accredited investors (including our advisor) with pre-existing business relationships
with our management team and sponsor collectively have an interest in an aggregate of 3,120,629 Founder Shares (or approximately 41.6%
of the outstanding Founder Shares) through purchase of membership interests in our Sponsor. Other than our Management Team, none of the
other members of our Sponsor will participate in our companys activities or have any right to control the Sponsor or participate
in any decision regarding the disposal of any security held by the Sponsor, or otherwise.
Because
our Sponsor acquired the Founder Shares at a nominal price, our Public Shareholders will incur immediate and substantial dilution upon
the closing of the Initial Public Offering, assuming no value is ascribed to the Public Warrants included in the Units. Further, the
ClassA Ordinary Shares issuable in connection with the conversion of the Founder Shares may result in material dilution to our
Public Shareholders due to the anti-dilutionrights of our Founder Shares that may result in an issuance of ClassA Ordinary
Shares on a greater than one-to-onebasis upon conversion. Additionally, our Public Shareholders may experience dilution from the
exercise of the 7,280,000 Private Placement Warrants to be purchased by our Sponsor and Cantor. simultaneously with the closing of the
Initial Public Offering. as well as conversion of any Working Capital Loans into equity, if elected by the Sponsor.
5
The
Founder Shares will automatically convert into ClassA Ordinary Shares concurrently with or immediately following the consummation
of our initial Business Combination or earlier at the option of the holder on a one-for-onebasis, subject to adjustment for share
sub-divisions, share capitalizations, reorganizations, recapitalizations and the like, and subject to further adjustment as provided
herein. In the case that additional ClassA Ordinary Shares, or any other equity-linkedsecurities, are issued or deemed
issued in excess of the amounts sold in our Initial Public Offering and related to or in connection with the closing of the initial Business Combination,
the ratio at which ClassB Ordinary Shares convert into ClassA Ordinary Shares will be adjusted (unless the holders of a majority
of the outstanding ClassB Ordinary Shares agree to waive such adjustment with respect to any such issuance or deemed issuance)
so that the number of ClassA Ordinary Shares issuable upon conversion of all ClassB Ordinary Shares will equal, in the aggregate,
20% of the sum of (i)the total number of all Ordinary Shares outstanding upon the completion of the Initial Public Offering excluding
the ClassA ordinary shares underlying the Private Placement Warrants issued to the Sponsor), plus (ii)all ClassA Ordinary
Shares and equity-linkedsecurities issued or deemed issued, in connection with the closing of the initial Business Combination
(excluding any shares or equity-linkedsecurities issued, or to be issued, to any seller in the initial Business Combination and
any private placement-equivalentwarrants issued to our Sponsor or any of its affiliates or to our officers or directors upon conversion
of Working Capital Loans) minus (iii)any redemptions of ClassA Ordinary Shares by Public Shareholders in connection with
an initial Business Combination and in connection with any amendment to our Amended and Restated Articles made prior to the consummation
of the initial Business Combination (A)to modify the substance or timing of our obligation to allow redemption in connection with
our initial Business Combination or to redeem 100% of our Public Shares if we do not complete our initial Business Combination within
the Combination Period or (B)with respect to any other material provisions relating to the rights of holders of ClassA Ordinary
Shares or pre-Business Combination activity; provided that such conversion of Founder Shares will never occur on a less than one-for-onebasis.
In
order to facilitate our initial Business Combination or for any other reason determined by our sponsor in its sole discretion, our Sponsor
may surrender or forfeit, transfer or exchange our Founder Shares, Private Placement Warrants or any of our other securities, including
for no consideration, as well as subject any such securities to earn-outsor other restrictions, or otherwise amend the terms of
any such securities or enter into any other arrangements with respect to any such securities. We may also issue ClassA Ordinary
Shares upon conversion of the ClassB Ordinary Shares at a ratio greater than one-to-oneat the time of our initial Business
Combination as a result of the anti-dilutionprovisions as set forth therein.
Sourcing
of Potential Business Combination Targets
We
believe our Management Teams significant operating and transaction experience and relationships provides us with a substantial
number of potential initial Business Combination targets. Over the course of their careers, the members of our Management Team have developed
a broad network of contacts and corporate relationships around the world. This network has grown through the activities of our Management
Team sourcing, acquiring and financing businesses, the reputation of our Management Team and advisors for integrity and fair dealing
with sellers, financing sources and target Management Teams and the experience of our Management Team in executing transactions under
varying economic and financial market conditions.
This
network has provided our Management Team with a flow of referrals that has resulted in numerous transactions which were proprietary or
where a limited group of investors were invited to participate in the sale process. We believe that the network of contacts and relationships
of our Management Team provide us important sources of investment opportunities. In addition, target Business Combination candidates
are brought to our attention from various unaffiliated sources, including investment market participants, private equity funds and large
business enterprises seeking to divest non-coreassets or divisions.
We
are not prohibited from pursuing an initial Business Combination with a company that is affiliated with Feynman Point Asset Management
(FPAM), our Sponsor (including its members), officers or directors or their respective affiliates, or completing the Business
Combination through a joint venture or other form of shared ownership with FPAM, our Sponsor (including its members), officers or directors
or their respective affiliates. In the event we seek to complete our initial Business Combination with a company that is affiliated (as
defined in our Amended and Restated Articles) with FPAM, our Sponsor (including its members), officers or directors or their respective
affiliates, we, or a committee of independent directors, will obtain an opinion from an independent investment banking firm or another
independent entity that commonly renders valuation opinions, stating that the consideration to be paid by us in such an initial Business
Combination is fair to our company from a financial point of view. We are not required to obtain such an opinion in any other context.
Members
of our Management Team, directly or indirectly, own Founder Shares and/or Private Placement Warrants, accordingly, may have a conflict
of interest in determining whether a particular target business is an appropriate business with which to effectuate our initial Business
Combination. Further, each of our officers and directors may have a conflict of interest with respect to evaluating a particular Business
Combination if the retention or resignation of any such officers and directors was included by a target business as a condition to any
agreement with respect to our initial Business Combination.
Each
of our officers and directors presently has, and any of them in the future may have additional, fiduciary, contractual or other obligations
or duties to one or more other entities pursuant to which such officer or director is or will be required to present a Business Combination
opportunity to such entities. Accordingly, if any of our officers or directors becomes aware of a Business Combination opportunity which
is suitable for an entity to which he or she has then current fiduciary or contractual obligations, he or she will honor his or her fiduciary
or contractual obligations to present such Business Combination opportunity to such other entity, subject to their fiduciary duties under
Cayman Islands and any other applicable law. Our Amended and Restated Articles provide that, to the fullest extent permitted by law:
(i)no individual serving as a director or an officer, among other persons, shall have any duty, except and to the extent expressly
assumed by contract, to refrain from engaging directly or indirectly in the same or similar business activities or lines of business
as us, and (ii)we renounce any interest or expectancy in, or in being offered an opportunity to participate in, any potential transaction
or matter which (a)may be a corporate opportunity for any director or officer, on the one hand, and us, on the other or (b)the
presentation of which would breach an existing legal obligation of a director or officer to any other entity. As a result, the fiduciary
duties or contractual obligations of our officers or directors could materially affect our ability to complete our initial Business Combination.
6
All
of our officers and certain of our directors are employed by, or in a contractual relationship with, FPAM or its affiliates. Each such
entity is continuously made aware of potential business opportunities, one or more of which we may desire to pursue for an initial Business
Combination. While none of such entities will have any duty to offer acquisition opportunities to us, each of them may become aware of
a potential transaction that is an attractive opportunity for us, which they may decide to share with us. In addition, our officers and
directors may have a duty to search for and offer acquisition opportunities to such other entities to which they owe duties, or to clients
of affiliates of our Sponsor (including FPAM) or our officers or directors.
As
a result, affiliates of our Sponsor, officers or directors (including FPAM) and their respective clients may compete with us for acquisition
opportunities in the same industries and sectors as we may target for our initial Business Combination. If any of them decide to pursue
any such opportunity, we may be precluded from procuring such opportunity. In addition, investment ideas generated within FPAM including
by any of our officers and other persons who may make decisions for our Company, may be suitable both for us and for affiliates of our
Sponsor, officers or directors or any of their respective clients, and will be directed initially to such persons rather than to us,
subject to the fiduciary duties of our directors and officers under Cayman Islands Law. Neither FPAM nor members of our Management Team
who are also employed by FPAM or any of their affiliates have any obligation to present us with any opportunity for a potential Business
Combination of which they become aware unless it is offered to them solely in their capacity as a director or officer of our company
and such opportunity is one we are permitted to undertake and would otherwise be reasonable for us to pursue, subject to their contractual
and fiduciary obligations to other parties.
Conflicts
may arise from FPAMs affiliation with us, its or its affiliates provision of services both to us and to third-partyclients,
as well as from actions undertaken by FPAM for their own account. FPAM is often engaged as a financial advisor, or placement agent, to
corporations and other entities and their directors and managers in connection with the sale of those entities, their assets or their
subsidiaries. Alternatively, FPAM, or another affiliate of our Sponsor, may be a financial or other type of advisor to a target business
that we pursue a Business Combination with and FPAM, or another affiliate of our Sponsor, may receive fees from the target business in
connection with a Business Combination. FPAM also represents potential buyers businesses and may be incentivized or obligated
to direct an opportunity to one of these buyers in lieu of us, thereby eliminating or reducing the investment opportunities available
to us.
In
addition, our Sponsor (including its members), officers or directors or their respective affiliates may sponsor or form other special
purpose acquisition companies similar to ours or may pursue other business or investment ventures during the period in which we are seeking
an initial Business Combination. As a result, our Sponsor (including its members), officers and directors or their respective affiliates
could have conflicts of interest in determining whether to present Business Combination opportunities to us or to any other special purpose
acquisition company with which they may become involved. Any such companies, businesses or investments may present additional conflicts
of interest in pursuing an initial Business Combination target, which could materially affect our ability to complete our initial Business
Combination. We have filed a Registration Statement on Form8-Awith the SEC to voluntarily register our securities under Section12
of the Securities ExchangeActof1934, as amended, or the ExchangeAct. As a result, we are subject to the rules
and regulations promulgated under the ExchangeAct. We have no current intention of filing a Form15 to suspend our reporting
or other obligations under the ExchangeAct prior or subsequent to the consummation of our initial Business Combination.
Status
as a Public Company
We
believe our structure makes us an attractive Business Combination partner to target businesses. As an existing public company, we offer
a target business an alternative to the traditional initial public offering through a merger or other Business Combination with us. In
a Business Combination transaction with us, the owners of the target business may, for example, exchange their shares of stock or shares
in the target business for our ClassA Ordinary shares (or shares of a new holding company) or for a combination of our ClassA
Ordinary Shares and cash, allowing us to tailor the consideration to the specific needs of the sellers. We believe target businesses
find this method a more expeditious and cost effective method to becoming a public company than the typical initial public offering.
The typical initial public offering process takes a significantly longer period of time than the typical Business Combination transaction
process, and there are significant expenses and market and other uncertainties in the initial public offering process, including underwriting
discounts and commissions, marketing and road show efforts that may not be present to the same extent in connection with a Business Combination
with us.
Furthermore,
once a proposed initial Business Combination is completed, the target business will have effectively become public, whereas an initial
public offering is always subject to the Underwriters ability to complete the offering, as well as general market conditions,
which could delay or prevent the offering from occurring or could have negative valuation consequences. Following an initial Business
Combination, we believe the target business would then have greater access to capital, an additional means of providing management incentives
consistent with shareholders interests and the ability to use its shares as currency for acquisitions. Being a public company
can offer further benefits by augmenting a companys profile among potential new customers and vendors and aid in attracting talented
employees.
7
While
we believe that our structure and our Management Teams backgrounds make us an attractive business partner, some potential target
businesses may view our status as a blank check company, such as our lack of an operating history and our ability to seek shareholder
approval of any proposed initial Business Combination, negatively.
Corporate
Information
Our
executive offices are located at 18 West 18th Street, New York, NY 10010, and our telephone number is (585)910-2306.
We are a Cayman Islands exempted company. Exempted companies are Cayman Islands companies conducting business mainly outside the Cayman
Islands and, as such, are exempted from complying with certain provisions of the Companies Act. As an exempted company, we have applied
for and received a tax exemption undertaking from the Cayman Islands government that, in accordance with Section6 of the Tax Concessions
Act (As Revised) of the Cayman Islands, for a period of 30years from the date of the undertaking, no law which is enacted in the
Cayman Islands imposing any tax to be levied on profits, income, gains or appreciations will apply to us or our operations and, in addition,
that no tax to be levied on profits, income, gains or appreciations or which is in the nature of estate duty or inheritance tax will
be payable (i)on or in respect of our shares, debentures or other obligations or (ii)by way of the withholding in whole or
in part of a payment of dividends or other distribution of income or capital by us to our shareholders or a payment of principal or interest
or other sums due under a debenture or other obligation of us.
Financial
Position
With
funds available for a Business Combination as of December 31, 2025 in the amount of $308,063,800 (before redemptions, taxes payable on
the interest earned, if any, and payment of the Deferred Fee), we offer a target business a variety of options, such as creating a liquidity
event for its owners, providing capital for the potential growth and expansion of its operations or strengthening its balance sheet by
reducing its debt ratio. Because we are able to complete our initial Business Combination using our cash, debt or equity securities,
or a combination of the foregoing, we have the flexibility to use the most efficient combination that will allow us to tailor the consideration
to be paid to the target business to fit its needs and desires. However, we have not taken any steps to secure third-party financing
and there can be no assurance it will be available to us.
Lack
of Business Diversification
For
an indefinite period of time after the completion of our initial Business Combination, the prospects for our success may depend entirely
on the future performance of a single business. Unlike other entities that have the resources to complete Business Combinations with
multiple entities in one or several industries, it is probable that we will not have the resources to diversify our operations and mitigate
the risks of being in a single line of business. By completing our initial Business Combination with only a single entity, our lack of
diversification may:
| 
| subject
us to negative economic, competitive and regulatory developments, any or all of which may
have a substantial adverse impact on the particular industry in which we operate after our
initial Business Combination, and | |
| 
| cause
us to depend on the marketing and sale of a single product or limited number of products
or services. | |
Limited
Ability to Evaluate the Targets Management Team
Although
we closely scrutinize the management of a prospective target business when evaluating the desirability of effecting our initial Business
Combination with that business, our assessment of the target businesss management may not prove to be correct. In addition, the
future management may not have the necessary skills, qualifications or abilities to manage a public company. Furthermore, the future
role of members of our Management Team, if any, in the target business cannot presently be stated with any certainty. The determination
as to whether any of the members of our Management Team will remain with the combined company will be made in connection with our initial
Business Combination. While it is possible that one or more of our directors will remain associated in some capacity with us following
our initial Business Combination, it is unlikely that any of them will devote their full efforts to our affairs subsequent to our initial
Business Combination. Moreover, we cannot assure our shareholders that members of our Management Team will have significant experience
or knowledge relating to the operations of the particular target business.
We
cannot assure our shareholders that any of our key personnel will remain in senior management or advisory positions with the combined
company. The determination as to whether any of our key personnel will remain with the combined company will be made at the time of our
initial Business Combination.
8
Following
a Business Combination, we may seek to recruit additional managers to supplement the incumbent management of the target business. We
cannot assure our shareholders that we will have the ability to recruit additional managers, or that additional managers will have the
requisite skills, knowledge or experience necessary to enhance the incumbent management.
Shareholders
May Not Have the Ability to Approve Our Initial Business Combination
We
may conduct redemptions without a shareholder vote pursuant to the tender offer rules of the SEC subject to the provisions of our Amended
and Restated Articles However, we will seek shareholder approval if it is required by applicable law or applicable stock exchange rule,
or we may decide to seek shareholder approval for business or other reasons.
Under
the Nasdaq Rules, shareholder approval would be required for our initial Business Combination if, for example:
| 
| we
issue Ordinary Shares that will be equal to or in excess of 20% of the number of our Ordinary
Shares then outstanding (other than in a public offering); | |
| 
| any
of our directors, officers or substantial shareholders (as defined by the Nasdaq Rules) has
a 5% or greater interest earned on the Trust Account (or such persons collectively have a
10% or greater interest), directly or indirectly, in the target business or assets to be
acquired or otherwise and the present or potential issuance of Ordinary Shares could result
in an increase in outstanding Ordinary Shares or voting power of 5% or more; or | |
| 
| the
issuance or potential issuance of Ordinary Shares will result in our undergoing a change
of control. | |
The
decision as to whether we will seek shareholder approval of a proposed Business Combination in those instances in which shareholder approval
is not required by applicable law or stock exchange listing requirements will be made by us, solely in our discretion, and will be based
on business and legal reasons, which include a variety of factors, including, but not limited to: (i)the timing of the transaction,
including in the event we determine shareholder approval would require additional time and there is either not enough time to seek shareholder
approval or doing so would place us at a disadvantage in the transaction or result in other additional burdens on us (ii)the expected
cost of holding a shareholder vote; (iii)the risk that the shareholders would fail to approve the proposed Business Combination;
(iv)other time and budget constraints of our Company; and (v)additional legal complexities of a proposed Business Combination
that would be time-consumingand burdensome to present to shareholders.
Permitted
Purchases of Our Securities
If
we seek shareholder approval of our initial Business Combination and we do not conduct redemptions in connection with our initial Business
Combination pursuant to the tender offer rules, our Sponsor, directors, officers, advisors and their respective affiliates may purchase
Public Shares or warrants in privately negotiated transactions or in the open market either prior to or following the completion of our
initial Business Combination, although they are under no obligation or duty to do so. Such a purchase may include a contractual acknowledgment
that such shareholder, although still the record holder of our shares is no longer the beneficial owner thereof and therefore agrees
not to exercise its redemption rights. In the event that our Sponsor, directors, officers, advisors and their respective affiliates purchase
shares in privately negotiated transactions from Public Shareholders who have already elected to exercise their redemption rights, such
selling shareholders would be required to revoke their prior elections to redeem their shares. It is intended that, if Rule10b-18would
apply to purchases by Sponsor, directors, officers, advisors and their respective affiliates, then such purchases will comply with Rule10b-18under
the ExchangeAct, to the extent it applies, which provides a safe harbor for purchases made under certain conditions, including
with respect to timing, pricing and volume of purchases.
Additionally,
at any time at or prior to our initial Business Combination, subject to applicable securities laws (including with respect to material
nonpublic information), our Sponsor, directors, officers, advisors and their respective affiliates may enter into transactions with investors
and others to provide them with incentives to acquire Public Shares, vote their Public Shares in favor of our initial Business Combination
or not redeem their Public Shares. There is no limit on the number of shares our Sponsor, directors, officers, advisors or their respective
affiliates may purchase in such transactions, subject to compliance with applicable law and Nasdaq rules. However, they have no current
commitments, plans or intentions to engage in such transactions and have not formulated any terms or conditions for any such transactions.
None of the funds in the Trust Account will be used to purchase Public Shares, rights or warrants in such transactions.
The
purpose of any such transactions could be to (1)increase the likelihood of obtaining shareholder approval of the Business Combination,
(2)reduce the number of public warrants outstanding and/or increase the likelihood of approval on any matters submitted to the
public warrant holders for approval in connection with our initial Business Combination or (3)satisfy a closing condition in an
agreement with a target that requires us to have a minimum net worth or a certain amount of cash at the closing of our initial Business
Combination, where it appears that such requirement would otherwise not be met. Any such purchases of our securities may result in the
completion of our initial Business Combination that may not otherwise have been possible.
9
In
addition, if such purchases are made, the public float of our securities may be reduced and the number of beneficial holders
of our securities may be reduced, which may make it difficult to maintain or obtain the quotation, listing or trading of our securities
on a national securities exchange.
Our
Sponsor, directors, officers, advisors and their respective affiliates anticipate that they may identify the shareholders with whom our
Sponsor, directors, officers, advisors and their respective affiliates may pursue privately negotiated transactions by either the shareholders
contacting us directly or by our receipt of redemption requests submitted by shareholders (in the case of ClassA Ordinary Shares)
following our mailing of proxy materials in connection with our initial Business Combination. To the extent that our Sponsor, directors,
officers, advisors and their respective affiliates enter into a private transaction, they would identify and contact only potential selling
or redeeming shareholders who have expressed their election to redeem their shares for a pro rata share of the Trust Account or vote
against our initial Business Combination, whether or not such shareholder has already submitted a proxy with respect to our initial Business
Combination but only if such shares have not already been voted at the general meeting related to our initial Business Combination. Our
Sponsor, directors, officers, advisors and their respective affiliates will select which shareholders to purchase shares from based on
the negotiated price and number of shares and any other factors that they may deem relevant, and will be restricted from purchasing shares
if such purchases do not comply with RegulationM under the ExchangeAct and the other federal securities laws.
Our
Sponsor, directors, officers, advisors and their respective affiliates are restricted from making purchases of shares if the purchases
would violate Section9(a)(2)or Rule10b-5of the ExchangeAct. Any such purchases will be reported pursuant
to Section13 and Section16 of the ExchangeAct to the extent such purchasers are subject to such reporting requirements.
To the extent such securities are purchased, such public securities will not be voted as required by Tender Offers and Schedules Compliance
and Disclosure Interpretations Question 166.01 promulgated by the SEC.Additionally, in the event our Sponsor, directors, officers,
advisors and their respective affiliates were to purchase Public Shares or warrants from Public Shareholders, such purchases would be
structured in compliance with the requirements of Rule14e-5under the ExchangeAct including, in pertinent part, through
adherence to the following:
| 
| our
registration statement/proxy statement filed for our Business Combination transaction would
disclose the possibility that our Sponsor, directors, officers, advisors and their respective
affiliates may purchase Public Shares or warrants from Public Shareholders outside the redemption
process, along with the purpose of such purchases; | |
| 
| if
our Sponsor, directors, officers, advisors and their respective affiliates were to purchase
Public Shares or warrants from Public Shareholders, they would do so at a price no higher
than the price offered through our redemption process; | |
| 
| our
registration statement/proxy statement filed for our Business Combination transaction would
include a representation that any of our securities purchased by our Sponsor, directors,
officers, advisors and their respective affiliates would not be voted in favor of approving
the Business Combination transaction; | |
| 
| our
Sponsor, directors, officers, advisors and their respective affiliates would not possess
any redemption rights with respect to our securities or, if they do acquire and possess redemption
rights, they would waive such rights; and | |
| 
| we
would disclose in a Form8-K, before our security holder meeting to approve the Business
Combination transaction, the following material items: | |
| 
| the
amount of our securities purchased outside of the redemption offer by our Sponsor, directors,
officers, advisors and their respective affiliates, along with the purchase price; | |
| 
| the
purpose of the purchases by our Sponsor, directors, officers, advisors and their respective
affiliates; | |
| 
| the
impact, if any, of the purchases by our Sponsor, directors, officers, advisors and their
respective affiliates on the likelihood that the Business Combination transaction will be
approved; | |
| 
| the
identities of our security holders who sold to our Sponsor, directors, officers, advisors
and their respective affiliates (if not purchased on the open market) or the nature of our
security holders (e.g., 5% security holders) who sold to our Sponsor, directors, officers,
advisors and their respective affiliates; and | |
| 
| the
number of our securities for which we have received redemption requests pursuant to our redemption
offer. | |
10
Redemptions
in Connection with Our Initial Business Combination
*Redemption
Rights for Public Shareholders upon Completion of Our Initial Business Combination*
We
will provide our Public Shareholders with the opportunity to redeem all or a portion of their Public Shares, regardless of whether they
abstain, vote for, or vote against, our initial Business Combination, upon the completion of our initial Business Combination at a per-shareprice,
payable in cash, equal to the aggregate amount then on deposit in the Trust Account calculated as of twobusinessdays prior
to the consummation of the initial Business Combination, including interest earned on the funds held in the Trust Account (less taxes
payable), divided by the number of then outstanding Public Shares, subject to the limitations and on the conditions described herein.
As of December 31, 2025, the Redemption Price was approximately $10.26 Per Public Share (before taxes payable, if any). The per share
amount we will distribute to investors who properly redeem their shares will not be reduced by the deferred underwriting commissions
we will pay to the Underwriters. Our Sponsor, officers and directors have entered into a Letter Agreement with us, pursuant to which
they have agreed to waive their redemption rights with respect to their Founder Shares and any Public Shares they may hold in connection
with the completion of our initial Business Combination.
Our
proposed initial Business Combination may impose a minimum cash requirement for (i)cash consideration to be paid to the target
or its owners, (ii)cash for working capital or other general corporate purposes or (iii)the retention of cash to satisfy
other conditions. In the event the aggregate cash consideration we would be required to pay for all ClassA Ordinary Shares that
are validly submitted for redemption plus any amount required to satisfy cash conditions pursuant to the terms of the proposed initial
Business Combination exceed the aggregate amount of cash available to us, we will not complete the initial Business Combination or redeem
any shares, and all ClassA Ordinary Shares submitted for redemption will be returned to the holders thereof. We may, however, raise
funds through the issuance of equity-linkedsecurities or through loans, advances or other indebtedness in connection with our initial
Business Combination, including pursuant to any forward purchase agreements or backstop arrangements into which we may enter, in order
to, among other reasons, satisfy such net tangible assets or minimum cash requirements.
**
*Manner
of Conducting Redemptions*
We
will provide our Public Shareholders with the opportunity to redeem all or a portion of their ClassA Ordinary Shares upon the completion
of our initial Business Combination either (i)in connection with a general meeting called to approve the Business Combination or
(ii)without a shareholder vote by means of a tender offer. The decision as to whether we will seek shareholder approval of a proposed
Business Combination or conduct a tender offer will be made by us, solely in our discretion, and will be based on a variety of factors
such as the timing of the transaction and whether the terms of the transaction would require us to seek shareholder approval under applicable
law or stock exchange listing requirement or whether we were deemed to be a foreign private issuer (which would require a tender offer
rather than seeking shareholder approval under SEC rules). Asset acquisitions and share purchases would not typically require shareholder
approval while direct mergers with our Company (other than with a 90% subsidiary of ours) and any transactions where we issue more than
20% of our issued and outstanding Ordinary Shares or seek to amend our Amended and Restated Articles would require shareholder approval.
So long as we obtain and maintain a listing for our securities on Nasdaq, we will be required to comply with the shareholder approval
requirements of the Nasdaq Rules.
The
requirement that we provide our Public Shareholders with the opportunity to redeem their Public Shares by one of the two methods listed
above are contained in provisions of our Amended and Restated Articles and will apply whether or not we maintain our registration under
the ExchangeAct or our listing on Nasdaq. Such provisions may be amended if approved by a Special Resolution.
If
we provide our Public Shareholders with the opportunity to redeem their Public Shares in connection with a general meeting, we will,
pursuant to our Amended and Restated Articles:
| 
| conduct
the redemptions in conjunction with a proxy solicitation pursuant to Regulation14A
of the ExchangeAct, which regulates the solicitation of proxies, and not pursuant to
the tender offer rules, and | |
| 
| file
proxy materials with the SEC. | |
In
the event that we seek shareholder approval of our initial Business Combination, we will distribute proxy materials and, in connection
therewith, provide our Public Shareholders with the redemption rights described above upon completion of the initial Business Combination.
If
we seek shareholder approval, we will complete our initial Business Combination only if we receive an Ordinary Resolution. A quorum for
such meeting will be present if the holders of at least one-thirdof issued and outstanding Ordinary Shares entitled to vote at
the meeting are represented in person or by proxy. Our Sponsor, officers and directors will count toward this quorum and, pursuant to
the Letter Agreement, our Sponsor, officers and directors have agreed to vote their Founder Shares and any Public Shares purchased during
or after our Initial Public Offering (including in open market and privately-negotiatedtransactions, aside from shares they may purchase in compliance
with the requirements of Rule14e-5under the ExchangeAct, which would not be voted in favor of approving the Business
Combination transaction) in favor of our initial Business Combination. For purposes of seeking approval of an ordinary resolution, non-voteswill
have no effect on the approval of our initial Business Combination once a quorum is obtained.
11
As
a result, in addition to our Sponsors Founder Shares, we would need 11,250,001, or 37.5%, of the 30,000,000 Public Shares sold
in our Initial Public Offering to be voted in favor of an initial Business Combination in order to have our initial Business Combination approved,
assuming all outstanding shares are voted, the over-allotmentoption is not exercised and the parties to the Letter Agreement do
not acquire any ClassA Ordinary Shares. Assuming that only the holders of one-thirdof our issued and outstanding Ordinary
Shares, representing a quorum under our Amended and Restated Articles vote their shares at a general meeting of our Company, we will
not need any Public Shares in addition to our Founder Shares to be voted in favor of an initial Business Combination in order to approve
an initial Business Combination. However, if our initial Business Combination is structured as a statutory merger or consolidation with
another company under Cayman Islands law, the approval of our initial Business Combination will require a special resolution, which requires
the affirmative vote of at least two-thirdsof the votes cast by such shareholders as, being entitled to do so, vote in person or,
where proxies are allowed, by proxy at the applicable general meeting of our Company. In addition, prior to the closing of our initial
Business Combination, only holders of our ClassB Ordinary Shares (i)will have the right to vote to appoint and remove directors
prior to or in connection with the completion of our initial Business Combination and (ii)will be entitled to vote on continuing
our company in a jurisdiction outside the Cayman Islands (including any Special Resolution required to amend our constitutional documents
or to adopt new constitutional documents, in each case, as a result of our approving a transfer by way of continuation in a jurisdiction
outside the Cayman Islands). These quorum and voting thresholds, and the voting agreement of our Sponsor, officers and directors, may
make it more likely that we will consummate our initial Business Combination. Each Public Shareholder may elect to redeem their Public
Shares irrespective of whether they vote for or vote against the proposed transaction, or whether they do not vote or abstain from voting
on the proposed transaction, or whether they were a Public Shareholder on the record date for the general meeting held to approve the
proposed transaction.
If
a shareholder vote is not required and we do not decide to hold a shareholder vote for business or other legal reasons, we will:
| 
| conduct
the redemptions pursuant to Rule13e-4and Regulation14E of the ExchangeAct,
which regulate issuer tender offers, and | |
| 
| file
tender offer documents with the SEC prior to completing our initial Business Combination
which contain substantially the same financial and other information about the initial Business
Combination and the redemption rights as is required under Regulation14A of the ExchangeAct,
which regulates the solicitation of proxies. | |
In
the event we conduct redemptions pursuant to the tender offer rules, our offer to redeem will remain open for at least 20businessdays,
in accordance with Rule14e-1(a)under the ExchangeAct, and we will not be permitted to complete our initial Business
Combination until the expiration of the tender offer period. In addition, the tender offer will be conditioned on Public Shareholders
not tendering more than the number of Public Shares we are permitted to redeem. If Public Shareholders tender more shares than we have
offered to purchase, we will withdraw the tender offer and not complete the initial Business Combination.
Upon
the public announcement of our initial Business Combination, if we elect to conduct redemptions pursuant to the tender offer rules, we
or our Sponsor will terminate any plan established in accordance with Rule10b5-1to purchase our Public Shares in the open
market, in order to comply with Rule14e-5under the ExchangeAct.
We
intend to require our Public Shareholders seeking to exercise their redemption rights, whether they are record holders or hold their
shares in street name, to, at the holders option, either deliver their share certificates to our transfer agent
or deliver their shares to our transfer agent electronically using the DWAC System, prior to the date set forth in the proxy materials
or tender offer documents, as applicable. In the case of proxy materials, this date may be up to twobusinessdays prior to
the scheduled vote on the proposal to approve the initial Business Combination. In addition, if we conduct redemptions in connection
with a shareholder vote, we intend to require a Public Shareholder seeking redemption of its Public Shares to also submit a written request
for redemption to our transfer agent twobusinessdays prior to the scheduled vote in which the name of the beneficial owner
of such shares is included. The proxy materials or tender offer documents, as applicable, that we will furnish to holders of our Public
Shares in connection with our initial Business Combination will indicate whether we are requiring Public Shareholders to satisfy such
delivery requirements. We believe that this will allow our transfer agent to efficiently process any redemptions without the need for
further communication or action from the redeeming Public Shareholders, which could delay redemptions and result in additional administrative
cost. If the proposed initial Business Combination is not approved and we continue to search for a target company, we will promptly return
any certificates or shares delivered by Public Shareholders who elected to redeem their shares.
Our
proposed initial Business Combination may impose a minimum cash requirement for (i)cash consideration to be paid to the target
or its owners, (ii)cash for working capital or other general corporate purposes or (iii)the retention of cash to satisfy
other conditions. In the event the aggregate cash consideration we would be required to pay for all ClassA Ordinary Shares that
are validly submitted for redemption plus any amount required to satisfy cash conditions pursuant to the terms of the proposed initial
Business Combination exceed the aggregate amount of cash available to us, we will not complete the initial Business Combination or redeem
any shares, and all ClassA Ordinary Shares submitted for redemption will be returned to the holders thereof. We may, however, raise
funds through the issuance of equity or equity-linkedsecurities or through loans, advances or other indebtedness in connection
with our initial Business Combination, including pursuant to any forward purchase agreements or backstop arrangements into which we may
enter into, in order to, among other reasons, satisfy such net tangible assets or minimum cash requirements.
12
*Limitation
on Redemption Upon Completion of Our Initial Business Combination If We Seek Shareholder Approval*
If
we seek shareholder approval of our initial Business Combination and we do not conduct redemptions in connection with our initial
Business Combination pursuant to the tender offer rules, our Amended and Restated Articles provide that a Public Shareholder,
together with any affiliate of such shareholder or any other person with whom such Public Shareholder is acting in concert or as a
group (as defined under Section13 of the ExchangeAct), will be restricted from redeeming its Public Shares
with respect to more than an aggregate of 15% of the Public Shares sold in the Initial Public Offering (the Excess
Shares) without our prior consent. We believe this restriction will discourage Public Shareholders from accumulating large
blocks of Public Shares, and subsequent attempts by such holders to use their ability to exercise their redemption rights against a
proposed Business Combination as a means to force us or our Management to purchase their Public Shares at a significant premium to
the then-currentmarket price or on other undesirable terms. Absent this provision, a Public Shareholder holding more than an
aggregate of 15% of the Public Shares sold in the Initial Public Offering could threaten to exercise its redemption rights if such
holders Public Shares are not purchased by us, our Sponsor or our Management at a premium to the then-currentmarket
price or on other undesirable terms. By limiting our Public Shareholders ability to redeem no more than 15% of the Public
Shares sold in our Initial Public Offering without our prior consent, we believe we will limit the ability of a small group of
shareholders to unreasonably attempt to block our ability to complete our initial Business Combination, particularly in connection
with a Business Combination with a target that requires as a closing condition that we have a minimum net worth or a certain amount
of cash.
However,
we will not restrict our Public Shareholders ability to vote all of their Public Shares (including Excess Shares) for or against
our initial Business Combination.
**
*Delivering
Share Certificates in Connection with the Exercise of Redemption Rights*
As
described above, we intend to require our Public Shareholders seeking to exercise their redemption rights, whether they are record holders
or hold their shares in street name, to, at the holders option, either deliver their share certificates to our transfer
agent or deliver their shares to our transfer agent electronically using the DWAC System, prior to the date set forth in the proxy materials
or tender offer documents, as applicable. In the case of proxy materials, this date may be up to twobusinessdays prior to
the scheduled vote on the proposal to approve the initial Business Combination. In addition, if we conduct redemptions in connection
with a shareholder vote, we intend to require a Public Shareholder seeking redemption of its Public Shares to also submit a written request
for redemption to our transfer agent twobusinessdays prior to the scheduled vote in which the name of the beneficial owner
of such shares is included. The proxy materials or tender offer documents, as applicable, that we will furnish to holders of our Public
Shares in connection with our initial Business Combination will indicate whether we are requiring Public Shareholders to satisfy such
delivery requirements. Accordingly, a Public Shareholder would have up to twobusinessdays prior to the scheduled vote on
the initial Business Combination if we distribute proxy materials, or from the time we send out our tender offer materials until the
close of the tender offer period, as applicable, to submit or tender its shares if it wishes to exercise its redemption rights. In the
event that a Public Shareholder fails to comply with these or any other procedures disclosed in the proxy or tender offer materials,
as applicable, its shares may not be redeemed. Given the relatively short exercise period, it is advisable for Public Shareholders to
use electronic delivery of their Public Shares.
There
is a nominal cost associated with the above-referencedprocess and the act of certificating the Public Shares or delivering them
through the DWAC System. The transfer agent will typically charge the broker submitting or tendering Public Shares a fee of approximately
$100.00 and it would be up to the broker whether or not to pass this cost on to the redeeming holder. However, this fee would be incurred
regardless of whether or not we require holders seeking to exercise redemption rights to submit or tender their Public Shares. The need
to deliver shares is a requirement of exercising redemption rights regardless of the timing of when such delivery must be effectuated.
Any
request to redeem such shares, once made, may be withdrawn at any time up to the date set forth in the proxy materials or tender offer
documents, as applicable. Furthermore, if a holder of a public share delivered its certificate in connection with an election of redemption
rights and subsequently decides prior to the applicable date not to elect to exercise such rights, such holder may simply request that
the transfer agent return the certificate (physically or electronically). It is anticipated that the funds to be distributed to holders
of our Public Shares electing to redeem their shares will be distributed promptly after the completion of our initial Business Combination.
If
our initial Business Combination is not approved or completed for any reason, then our Public Shareholders who elected to exercise their
redemption rights would not be entitled to redeem their shares for the applicable pro rata share of the Trust Account. In such case,
we will promptly return any certificates delivered by public holders who elected to redeem their shares.
If
our initial proposed Business Combination is not completed, we may continue to try to complete a Business Combination with a different
target until the end of the Combination Period.
13
*Redemption
of Public Shares and Liquidation if No Initial Business Combination*
Our
Amended and Restated Articles provide that we will have only the duration of the Combination Period to complete our initial Business
Combination. If we have not completed our initial Business Combination within such time period, we will (i)cease all operations
except for the purpose of winding up, (ii)as promptly as reasonably possible but not more than tenbusinessdays thereafter
(and subject to lawfully available funds therefor), redeem the Public Shares, at a per-shareprice, payable in cash, equal to the
aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account (which interest
shall be net of taxes and less up to $100,000 of interest to pay dissolution expenses), divided by the number of then-outstandingPublic
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 our remaining shareholders and our Board of Directors, liquidate and dissolve, subject in each
case to our obligations under Cayman Islands law to provide for claims of creditors and the requirements of other applicable law. There
will be no redemption rights or liquidating distributions with respect to our warrants, which will expire worthless if we fail to complete
our initial Business Combination within the Combination Period.
Our
Sponsor, officers and directors have entered into a Letter Agreement with us, pursuant to which they have waived their rights to liquidating
distributions from the Trust Account with respect to any Founder Shares held by them if we fail to complete our initial Business Combination
within the Combination Period, although they are entitled to liquidating distributions from assets outside the Trust Account. However,
if our Sponsor or Management Team acquire Public Shares in or after our Initial Public Offering, they will be entitled to liquidating distributions
from the Trust Account with respect to such Public Shares if we fail to complete our initial Business Combination within the Combination
Period.
Our
Sponsor, officers and directors have agreed, pursuant to the Letter Agreement, that they will not propose any amendment to our Amended
and Restated Articles (A)to modify the substance or timing of our obligation to allow redemption in connection with our initial
Business Combination or to redeem 100% of our Public Shares if we do not complete our initial Business Combination within the Combination
Period or (B)with respect to any other material provisions relating to shareholders rights or pre-initialBusiness
Combination activity, in each case unless we provide our Public Shareholders with the opportunity to redeem their Public Shares upon
approval of any such amendment at a per-shareprice, payable in cash, equal to the aggregate amount then on deposit in the Trust
Account, including interest earned on the funds held in the Trust Account (less taxes payable), divided by the number of then outstanding
Public Shares.
We
expect that all costs and expenses associated with implementing our plan of dissolution, as well as payments to any creditors, will be
funded from amounts remaining out of the approximately $1,016,713 of proceeds held outside the Trust Account (as of December 31, 2025),
although we cannot assure our Public Shareholders that there will be sufficient funds for such purpose. However, if those funds are not
sufficient to cover the costs and expenses associated with implementing our plan of dissolution, to the extent that there is any interest
accrued in the Trust Account not required to pay income taxes on interest income earned on the Trust Account balance, we may request
the trustee to release to us an additional amount of up to $100,000 of such accrued interest to pay those costs and expenses.
If
we were to expend all of the net proceeds of the Initial Public Offering and the Private Placement, other than the proceeds deposited
in the Trust Account, and without taking into account interest, if any, earned on the Trust Account, the Redemption Price upon our dissolution
would be approximately $10.26 as of December 31, 2025. The proceeds deposited in the Trust Account could, however, become subject to
the claims of our creditors which would have higher priority than the claims of our Public Shareholders. We cannot assure our shareholders
that the actual per-shareredemption amount received by shareholders will not be substantially less than the Redemption Price. While
we intend to pay such amounts, if any, we cannot assure our shareholders that we will have funds sufficient to pay or provide for all
creditors claims.
Although
we seek to have all vendors, service providers, prospective target businesses and other entities with which we do business execute agreements
with us waiving any right, title, interest or claim of any kind in or to any monies held in the Trust Account for the benefit of our
Public Shareholders, there is no guarantee that they will execute such agreements or even if they execute such agreements that they would
be prevented from bringing claims against the Trust Account including but not limited to, fraudulent inducement, breach of fiduciary
responsibility or other similar claims, as well as claims challenging the enforceability of the waiver, in each case in order to gain
an advantage with respect to a claim against our assets, including the funds held in the Trust Account. If any third party refuses to
execute an agreement waiving such claims to the monies held in the Trust Account, our Management will consider whether competitive alternatives
are reasonably available to us and will only enter into an agreement with such third party if Management believes that such third partys
engagement would be in our best interests under the circumstances. Examples of possible instances where we may engage a third party that
refuses to execute a waiver include the engagement of a third party consultant whose particular expertise or skills are believed by Management
to be significantly superior to those of other consultants that would agree to execute a waiver or in cases where Management is unable
to find a service provider willing to execute a waiver. Withum, our independent registered public accounting firm, and the Underwriters
will not execute agreements with us waiving such claims to the monies held in the Trust Account. In addition, there is no guarantee that
such entities will agree to waive any claims they may have in the future as a result of, or arising out of, any negotiations, contracts
or agreements with us and will not seek recourse against the Trust Account for any reason.
14
To
protect the amounts held in the Trust Account, our Sponsor has agreed that it will be liable to us if and to the extent any claims by
a third party for services rendered or products sold to us (except for our independent registered public accounting firm), or a prospective
target business with which we have entered into a written letter of intent, confidentiality or other similar agreement or Business Combination
agreement, reduce the amount of funds in the Trust Account to below the lesser of (i)$10.00 per Public Share and (ii)the
actual amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.00
per share due to reductions in the value of the trust assets, less taxes payable, provided that such liability will not apply to any
claims by a third party or prospective target business who executed a waiver of any and all rights to the monies held in the Trust Account
(whether or not such waiver is enforceable) nor will it apply to any claims under our indemnity of the Underwriters against certain liabilities,
including liabilities under the Securities Act. However, we have not asked our Sponsor to reserve for such indemnification obligations,
nor have we independently verified whether our Sponsor has sufficient funds to satisfy its indemnity obligations and we believe that
our Sponsors only assets are securities of our Company. Therefore, we cannot assure our Public Shareholders that our Sponsor would
be able to satisfy those obligations. As a result, if any such claims were successfully made against the Trust Account, the funds available
for our initial Business Combination and redemptions could be reduced to less than $10.00 per Public Share. In such event, we may not
be able to complete our initial Business Combination, and you would receive such lesser amount per share in connection with any redemption
of their Public Shares. None of our officers or directors will indemnify us for claims by third parties including, without limitation,
claims by vendors and prospective target businesses.
In
the event that the proceeds in the Trust Account are reduced below the lesser of (i)$10.00 per Public Share and (ii)the actual
amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account if less than $10.00 per share
due to reductions in the value of the trust assets, in each case less (x) taxes payable, if any, and (y) up to $100,000 for dissolution
expenses, and our Sponsor asserts that it is unable to satisfy its indemnification obligations or that it has no indemnification obligations
related to a particular claim, our independent directors would determine whether to take legal action against our Sponsor to enforce
its indemnification obligations. While we currently expect that our independent directors would take legal action on our behalf against
our Sponsor to enforce its indemnification obligations to us, it is possible that our independent directors in exercising their business
judgment may choose not to do so in any particular instance if, for example, the cost of such legal action is deemed by the independent
directors to be too high relative to the amount recoverable or if the independent directors determine that a favorable outcome is not
likely. Accordingly, we cannot assure our Public Shareholders that due to claims of creditors the actual value of the per-shareredemption
price will not be less than $10.00 per Public Share.
We
will seek to reduce the possibility that our Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring
to have all vendors, service providers, prospective target businesses or other entities with which we do business execute agreements
with us waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account. Our Sponsor will also not
be liable as to any claims under our indemnity of the Underwriters against certain liabilities, including liabilities under the Securities
Act. As of December 31, 2025, we had access to up to approximately $1,016,713 from the Initial Public Offering held outside of the Trust
Account with which to pay any such potential claims (including costs and expenses incurred in connection with our liquidation, currently
estimated to be no more than approximately $100,000). In the event that we liquidate and it is subsequently determined that the reserve
for claims and liabilities is insufficient, shareholders who received funds from our Trust Account could be liable for claims made by
creditors. In the event that our offering expenses exceed our estimate of $750,000, we may fund such excess with funds from the funds
not to be held in the Trust Account. In such case, the amount of funds we intend to be held outside the Trust Account would decrease
by a corresponding amount.
If
we file a bankruptcy or insolvency petition or an involuntary bankruptcy or insolvency petition is filed against us that is not dismissed,
the proceeds held in the Trust Account could be subject to applicable bankruptcy or insolvency law, and may be included in our bankruptcy
estate and subject to the claims of third parties with priority over the claims of our shareholders. To the extent any bankruptcy claims
deplete the Trust Account, we cannot assure our shareholders we will be able to return $10.00 per share to our Public Shareholders. Additionally,
if we file a bankruptcy or insolvency petition or an involuntary bankruptcy or insolvency petition is filed against us that is not dismissed,
any distributions received by shareholders could be viewed under applicable debtor/creditor and/or bankruptcy/insolvency laws as either
a preferential transfer or a fraudulent conveyance, preference or disposition. As a result, a liquidator
or bankruptcy or other court could seek to recover some or all amounts received by our shareholders. Furthermore, our Board of Directors
may be viewed as having breached its fiduciary duty to us or our creditors and/or may have acted in bad faith, and thereby exposing itself
and our company to claims of punitive damages, by paying Public Shareholders from the Trust Account prior to addressing the claims of
creditors. We cannot assure our shareholders that claims will not be brought against us for these reasons.
Our
Public Shareholders will be entitled to receive funds from the Trust Account only (i)in the event of the redemption of our Public
Shares if we do not complete our initial Business Combination within the Combination Period, (ii)in connection with a shareholder
vote to amend our Amended and Restated Articles (A)to modify the substance or timing of our obligation to allow redemption in connection
with our initial Business Combination or to redeem 100% of our Public Shares if we do not complete our initial Business Combination within
the Combination Period or (B)with respect to any other material provisions relating to Public Shareholders rights or pre-initial
Business Combination activity or (iii)if they redeem their respective Public Shares for cash upon the completion of our initial
Business Combination, subject to applicable law and any limitations (including but not limited to cash requirements) created by the terms
of the proposed Business Combination. In no other circumstances will a Public Shareholder have any right or interest of any kind to or
in the Trust Account. In the event we seek shareholder approval in connection with our initial Business Combination, a shareholders
voting in connection with the Business Combination alone will not result in a Public Shareholder redeeming its Public Shares to us for
an applicable pro rata share of the Trust Account. Such Public Shareholder must have also exercised its redemption rights described above.
These provisions of our Amended and Restated Articles, like all provisions of our Amended and Restated Articles, may be amended with
a shareholder vote.
15
Competition
In
identifying, evaluating and selecting a target business for our initial Business Combination, we encounter competition from other entities
having a business objective similar to ours, including other SPACs, private equity groups and leveraged buyout funds, public companies
and operating businesses seeking strategic acquisitions. Many of these entities are well established and have extensive experience identifying
and effecting Business Combinations directly or through affiliates. Moreover, many of these competitors possess similar or greater financial,
technical, human and other resources than us. Our ability to acquire larger target businesses is limited by our available financial resources.
This inherent limitation gives others an advantage in pursuing the acquisition of a target business. Furthermore, our obligation to pay
cash in connection with our Public Shareholders who exercise or are forced to exercise their redemption rights may reduce the resources
available to us for our initial Business Combination and our issued and outstanding Warrants, and the future dilution they potentially
represent, may not be viewed favorably by certain target businesses. Either of these factors may place us at a competitive disadvantage
in successfully negotiating an initial Business Combination.
Employees
We
currently have six officers: Messrs. Naggar, Urgo, Knipper, Sandler, Newman and Gori. These individuals are not obligated to devote any
specific number ofhours to our matters but they intend to devote as much of their time as they deem necessary to our affairs until
we have completed our initial Business Combination. The amount of time they will devote in any time period will vary based on whether
a target business has been selected for our initial Business Combination and the stage of the Business Combination process we are in.
We do not intend to have any full time employees prior to the completion of our initial Business Combination.
Periodic
Reporting and Financial Information
We
have registered our units, ClassA Ordinary Shares and Warrants under the ExchangeAct and have reporting obligations, including
the requirement that we file annual, quarterly and current reports with the SEC.In accordance with the requirements of the ExchangeAct,
our annual reports, including this Report, contain financial statements audited and reported on by Withum, our registered public accountants.
We have no current intention of filing a Form15 to suspend our reporting or other obligations under the ExchangeAct prior
or subsequent to the consummation of our initial Business Combination.
We
will provide shareholders with audited financial statements of the prospective target business as part of the proxy solicitation materials
or tender offer documents sent to shareholders to assist them in assessing the target business. In all likelihood, these financial statements
will need to be prepared in accordance with, or reconciled to, GAAP or IFRS, depending on the circumstances, and the historical financial
statements may be required to be audited in accordance with the standards of the PCAOB.These financial statement requirements may
limit the pool of potential target businesses we may conduct an initial Business Combination with because some targets may be unable
to provide such statements in time for us to disclose such statements in accordance with federal proxy rules and complete our initial
Business Combination within the prescribed time frame. We cannot assure shareholders that any particular target business identified by
us as a potential Business Combination candidate will have financial statements prepared in accordance with the requirements outlined
above, or that the potential target business will be able to prepare its financial statements in accordance with the requirements outlined
above. To the extent that these requirements cannot be met, we may not be able to acquire the proposed target business. While this may
limit the pool of potential Business Combination candidates, we do not believe that this limitation will be material.
We
are required to evaluate our internal control procedures for the fiscal year ending December31, 2025 as required by the Sarbanes-OxleyAct.
Only in the event we are deemed to be a large accelerated filer or an accelerated filer, and no longer qualify as an emerging growth
company, will we be required to have our internal control procedures audited. A target business may not be in compliance with the provisions
of the Sarbanes-OxleyAct regarding adequacy of their internal controls. The development of the internal controls of any such entity
to achieve compliance with the Sarbanes-OxleyAct may increase the time and costs necessary to complete any such Business Combination.
16
We
are a Cayman Islands exempted company. Exempted companies are Cayman Islands companies conducting business mainly outside the Cayman
Islands and, as such, are exempted from complying with certain provisions of the Companies Act. As an exempted company, we have applied
for and received a tax exemption undertaking from the Cayman Islands government that, in accordance with Section6 of the Tax Concessions
Act (As Revised) of the Cayman Islands, for a period of 30years from the date of the undertaking, no law that is enacted in the
Cayman Islands imposing any tax to be levied on profits, income, gains or appreciations will apply to us or our operations and, in addition,
that no tax to be levied on profits, income, gains or appreciations or which is in the nature of estate duty or inheritance tax will
be payable (i)on or in respect of our Ordinary Shares, debentures or other obligations or (ii)by way of the withholding in
whole or in part of a payment of dividends or other distribution of income or capital by us to our shareholders or a payment of principal
or interest or other sums due under a debenture or other obligation of us. We are an emerging growth company, as defined
in Section2(a)of the Securities Act, as modified by the JOBS Act. As such, we are eligible to 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 Section404 of the Sarbanes-OxleyAct,
reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the
requirements of holding a non-bindingadvisory vote on executive compensation and shareholder approval of any golden parachute payments
not previously approved. If some investors find our securities less attractive as a result, there may be a less active trading market
for our securities and the prices of our securities may be more volatile.
In
addition, Section107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended
transition period provided in Section7(a)(2)(B)of the Securities Act for complying with new or revised accounting standards.
In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards
would otherwise apply to private companies. We intend to continue to take advantage of the benefits of this extended transition period.
We
will remain an emerging growth company until the earlier of (1)the lastday of the fiscal year (a)following May 1, 2025,
(b)in which we have total annual gross revenue of at least $1.235billion, or (c)in which we are deemed to be a large
accelerated filer, which means the market value of our ClassA Ordinary Shares that are held by non-affiliatesexceeds $700million
as of the prior June30, and (2)the date on which we have issued more than $1.0billion in non-convertibledebt
securities during the prior three-yearperiod.
We
are also a smaller reporting company as defined in Item10(f)(1)of RegulationS-K.Smaller reporting
companies may take advantage of certain reduced disclosure obligations, including, among other things, providing only twoyears
of audited financial statements. We will remain a smaller reporting company until the lastday of the fiscal year in which (1)the
market value of our ClassA Ordinary Shares held by non-affiliatesequals or exceeds $250million as of the end of that
years second fiscal quarter, or (2)our annual revenues equaled or exceeded $100million during such completed fiscal
year and the market value of our ClassA Ordinary Shares held by non-affiliatesexceeds $700million as of the end of
that years second fiscal quarter.
In
addition, prior to the consummation of a Business Combination, only holders of our Class B Ordinary Shares have the right to vote on
(i) the appointment or removal of directors and (ii) an amendment to continue our existence in a jurisdiction outside of the Cayman Islands.
As a result, Nasdaq considers us to be a controlled company within the meaning of Nasdaq corporate governance standards.
Under Nasdaq corporate governance standards, a company of which more than 50% of the voting power for the appointment of directors is
held by an individual, group or another company is a controlled company and may elect not to comply with certain corporate
governance requirements. We currently do not intend to rely on the controlled company exemption, but may do so in the future.
Accordingly, if we choose to do so, our shareholders will not have the same protections afforded to shareholders of companies that are
subject to all of the Nasdaq corporate governance requirements.
17
Item
1A. Risk Factors.
As
a smaller reporting company under Rule 12b-2 of the Exchange Act, we are not required to include risk factors in this Report. However,
the following are brief descriptions of material risks, uncertainties and other factors that could have a material effect on us and our operations:
Risks
Relating to our Search for, and Consummation of or Inability to Consummate, a Business Combination
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we are a
blank check company with no operating history and no operating revenues, and our shareholders have a limited basis on which to
evaluate our ability to achieve our business objective, which is completing an initial Business Combination; | |
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we may
not be able to complete our initial Business Combination within the Combination Period, in which case we would liquidate and redeem
our Public Shares; | |
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we may
seek Business Combination opportunities with a high degree of complexity that require significant operational improvements, which
could delay or prevent us from achieving our desired results; | |
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we may
be unable to obtain additional financing to complete our initial Business Combination or to fund the operations and growth of a target
business, which could compel us to restructure or abandon a particular Business Combination; | |
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we may
issue our Ordinary Shares to our shareholders in connection with our initial Business Combination at a price that is less than the prevailing
market price of our Ordinary Shares at that time; | |
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our Public
Shareholders may not be afforded an opportunity to vote on our proposed initial Business Combination, and even if we hold a vote,
holders of our Founder Shares will participate in such vote, which means we may complete our initial Business Combination even though
a majority of our Public Shareholders do not support such a combination; | |
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as the
number of SPACs evaluating targets increases, attractive targets may become scarcer and there may be more competition for attractive
targets, or such attractive targets may not be interested in consummating a Business Combination with a SPAC due to a negative public
perception of mergers involving SPACs. This could increase the cost of our initial Business Combination and could even result in
our inability to find a target or to consummate an initial Business Combination; | |
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we may
attempt to simultaneously complete Business Combinations with multiple prospective targets, which may hinder our ability to complete
our initial Business Combination and give rise to increased costs and risks that could negatively impact our operations and profitability; | |
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we may
engage one or more of the Underwriters or one of their respective affiliates to provide additional services to us after the Initial
Public Offering, which may include acting as mergers and acquisitions advisor in connection with an initial Business Combination
or as placement agent in connection with a related financing transaction. The Underwriters are entitled to receive the Deferred Fee
that will be released from the Trust Account only upon completion of an initial Business Combination. These financial incentives
may cause the Underwriters to have potential conflicts of interest in rendering any such additional services to us after the Initial
Public Offering, including, for example, in connection with the sourcing and consummation of an initial Business Combination; | |
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we may
attempt to complete our initial Business Combination with a private company about which little information is available, which may
result in a Business Combination with a company that is not as profitable as we suspected, if at all; | |
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resources
could be wasted on researching Business Combinations targets that are not completed, which could materially adversely affect subsequent
attempts to locate and acquire or merge with another business. If we have not completed our initial Business Combination within the
Combination Period, our Public Shareholders may receive only the Redemption Price, or less than such amount in certain circumstances,
on the liquidation of our Trust Account and our warrants will expire worthless; | |
18
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recent
fluctuations in inflation and interest rates in the United States and elsewhere could make it more difficult for us to consummate
an initial Business Combination; | |
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changes
in laws or regulations (including the adoption of policies by governing administrations), or a failure to comply with any laws and
regulations, may adversely affect our business, including our ability to negotiate and complete our initial Business Combination,
and results of operations; | |
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In order
to effectuate an initial Business Combination, SPACs have, in the recent past, amended various provisions of their memorandums and
articles of association, and other governing instruments. We cannot assure our shareholders that we will not seek to amend our Amended
and Restated Articles or governing agreement in a manner that will make it easier for us to complete our initial Business Combination
that our shareholders may not support; | |
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changes
in international trade policies, tariffs and treaties affecting imports and exports may have a material adverse effect on our search
for an initial Business Combination target or the performance or business prospectsof a post-Business Combination company | |
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adverse
developments affecting the financial services industry, including events or concerns involving liquidity, defaults or non-performance
by financial institutions, could adversely affect our business, financial condition or results of operations, or our Business Combination
prospects; | |
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cyber
incidents or attacks directed at us or third parties could result in information theft, data corruption, operational disruption and/or
financial loss, as well as impact our ability to consummate an initial Business Combination; | |
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if we
are deemed to be an investment company under the Investment Company Act, we may be required to institute burdensome compliance requirements
and our activities may be restricted, which may make it difficult for us to complete our initial Business Combination; | |
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if we
seek shareholder approval of our initial Business Combination, our Sponsor and Management Team have agreed to vote in favor of such
initial Business Combination, regardless of how our Public Shareholders vote. As such, under certain circumstances, we may not need
any Public Shares in addition to Founder Shares to be voted in favor of our initial Business Combination to approve an initial Business
Combination; | |
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our Public
Shareholders only opportunity to effect their investment decision regarding a potential Business Combination may be limited
to the exercise of their right to redeem their Public Shares from us for cash; | |
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the ability
of our Public Shareholders to redeem their Public Shares for cash may make our financial condition unattractive to potential Business
Combination targets, which may make it difficult for us to enter into a Business Combination with a target; | |
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the ability
of our Public Shareholders to exercise redemption rights with respect to a large number of our Ordinary Shares and the payment of
the Deferred Fee may not allow us to complete the most desirable Business Combination or optimize our capital structure, and may
materially dilute Public Shareholders investment in us; | |
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the ability
of our Public Shareholders to exercise redemption rights with respect to a large number of our Ordinary Shares could increase the
probability that our initial Business Combination would be unsuccessful and that our Public Shareholders would have to wait for liquidation
in order to redeem their Public Shares; | |
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the requirement
that we complete our initial Business Combination within the Combination Period may give potential target businesses leverage over
us in negotiating a Business Combination and may limit the time we have in which to conduct due diligence on potential Business Combination
targets, in particular as we approach the end of the Combination Period, which could undermine our ability to complete our initial
Business Combination on terms that would produce value for our shareholders; | |
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we may
decide not to extend the Combination Period, in which case we would liquidate and redeem our Public Shares, and the Warrants would
be worthless; | |
19
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if we
seek shareholder approval of our initial Business Combination, our Sponsor, directors, officers, advisors and their respective affiliates
may elect to purchase Shares or Public Warrants from Public Shareholders, which may influence a vote on a proposed Business Combination
and reduce the public float of our Public Shares or Public Warrants; | |
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if a Public
Shareholder fails to receive notice of our offer to redeem their Public Shares in connection with our initial Business Combination,
or fails to comply with the procedures for submitting or tendering their Public Shares, such Public Shares may not be redeemed; | |
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our Public
Shareholders will not be entitled to protections normally afforded to shareholders of other blank check companies subject to Rule419
of the Securities Act; | |
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if we
seek shareholder approval of our initial Business Combination and we do not conduct redemptions pursuant to the tender offer rules,
and if a shareholder or a group of shareholders are deemed to hold in excess of 15% of our Class A Ordinary Shares,
they may lose the ability to redeem all such Public Shares in excess of 15% of our ClassA Ordinary Shares; | |
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because
of our limited resources and the significant competition for Business Combination opportunities, it may be more difficult for us
to complete our initial Business Combination. If we are unable to complete our initial Business Combination, our Public Shareholders
may receive only their pro rata portion of the funds in the Trust Account that are available for distribution to Public Shareholders,
and our Warrants will expire worthless; | |
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if the
net proceeds of the Initial Public Offering and Private Placement not being held in the Trust Account are insufficient to allow us
to operate for at least the duration of the Combination Period, it could limit the amount available to fund our search for a target
business or businesses and complete our initial Business Combination, and we will depend on loans from our Sponsor or Management
Team to fund our search and to complete our initial Business Combination; | |
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if we
are unable to consummate our initial Business Combination within the Combination Period, our Public Shareholders may be forced to
wait beyond May 1, 2027 before redemption from our Trust Account; | |
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we may
not hold an annual general meeting until after the consummation of our initial Business Combination, which could delay the opportunity
for our Public Shareholders to discuss company affairs with Management, and the holders of our Class A Ordinary Shares will not have
the right to vote on the appointment or removal of directors or continuing our Company in a jurisdiction outside the Cayman Islands
until after the consummation of our initial Business Combination; | |
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since
only holders of our ClassB Ordinary Shares have the right to vote on the appointment of directors prior to the consummation
of the initial Business Combination, Nasdaq considers us to be a controlled company within the meaning of the Nasdaq
Rules and, as a result, we may qualify for exemptions from certain corporate governance requirements; | |
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our Sponsor
controls the appointment of our Board of Directors until consummation of our initial Business Combination and holds a substantial
interest in us. As a result, it will appoint all of our directors prior to the consummation of our initial Business Combination and
may exert a substantial influence on actions requiring a shareholder vote, potentially in a manner that our Public Shareholders do
not support; | |
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because
we are neither limited to evaluating a target business in a particular industry sector nor have we selected any target businesses
with which to pursue our initial Business Combination shareholders are unable to ascertain the merits or risks of any particular
target business operations; | |
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we may
seek Business Combination opportunities in industries or sectors that may be outside of our Managements areas of expertise; | |
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although
we have identified general criteria and guidelines that we believe are important in evaluating prospective target businesses, we
may enter into our initial Business Combination with a target that does not meet such criteria and guidelines, and as a result, the
target business with which we enter into our initial Business Combination may not have attributes entirely consistent with our general
criteria and guidelines; | |
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we are
not required to obtain an opinion from an independent investment banking firm or from another independent entity that commonly renders
valuation opinions, and consequently, our shareholders may have no assurance from an independent source that the price we are paying
for the business is fair to our shareholders from a financial point of view; | |
20
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we may
issue additional Class A Ordinary Shares or preference shares to complete our initial Business Combination or under an employee incentive
plan after completion of our initial Business Combination. We may also issue Class A Ordinary Shares upon the conversion of the Founder
Shares at a ratio greater than one-to-one at the time of our initial Business Combination as a result of the anti-dilution provisions
contained therein. Any such issuances would dilute the interest of our shareholders and likely present other risks. | |
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unlike
some other similarly structured SPACs, our Sponsor, officers and directors will receive additional Class A Ordinary Shares if we
issue certain shares to consummate an initial Business Combination; | |
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we may
engage in a Business Combination with one or more target businesses that have relationships with entities that may be affiliated
with our Sponsor, officers, directors or existing holders, which may raise potential conflicts of interest; | |
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we may
issue notes or other debt securities, or otherwise incur substantial debt, to complete a Business Combination, which may adversely
affect our leverage and financial condition and thus negatively impact the value of our shareholders investment in us; | |
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we may
only be able to complete one Business Combination with the proceeds of the Initial Public Offering and the Private Placement, which
will cause us to be solely dependent on a single business, and which may have a limited number of products or services. This lack
of diversification may negatively impact our operations and profitability; | |
| 
| 
| 
we do
not have a specified maximum redemption threshold. The absence of such a redemption threshold may make it possible for us to complete
our initial Business Combination when a substantial majority of our Public Shareholders do not agree; | |
| 
| 
| 
the provisions
of our Amended and Restated Articles that relate to our pre-Business Combination activity (and corresponding provisions governing
the release of funds from our Trust Account) may be amended with a Special Resolution of our shareholders, which is a lower amendment
threshold than that of some other SPACs. It may be easier for us, therefore, to amend the Amended and Restated Articles to facilitate
the completion of an initial Business Combination that some of our Public Shareholders may not support; | |
| 
| 
| 
because
we must furnish our shareholders with financial statements of our Business Combination target, we may lose the ability to complete
an otherwise advantageous initial Business Combination with some prospective target businesses; | |
| 
| 
| 
compliance
obligations under the Sarbanes-Oxley Act may make it more difficult for us to effectuate our initial Business Combination, require
substantial financial and management resources, and increase the time and costs of completing an initial Business Combination; | |
| 
| if
our initial Business Combination involves a company organized under the laws of a state of the United States (or any subdivision thereof),
the Excise Tax could be imposed on us in connection with redemptions of our Ordinary Shares after or in connection with such initial
Business Combination; | 
|
Risks
Relating to the Post-Business Combination Company
| 
| 
| 
the officers
and directors of an acquisition candidate may resign upon completion of our initial Business Combination. The loss of a Business
Combination targets key personnel could negatively impact the operations and profitability of ourpost-combinationbusiness; | |
| 
| 
| 
subsequent
to our completion of our initial Business Combination, we may be required to take write-downs or write-offs, restructuring and impairment
or other charges that could have a significant negative effect on our financial condition, results of operations and the price of
our securities, which could cause our shareholders to lose some or all of their investment; | |
| 
| 
| 
our Management
may not be able to maintain control of a target business after our initial Business Combination. We cannot provide assurance that,
upon loss of control of a target business, new management will possess the skills, qualifications or abilities necessary to profitably
operate such business; | |
| 
| 
| 
we may
have a limited ability to assess the management of a prospective target business and, as a result, may affect our initial Business
Combination with a target business whose management may not have the skills, qualifications or abilities to manage a public company; | |
| 
| 
| 
our initial
Business Combination and our structure thereafter may not be tax-efficient to our shareholders and Warrant holders. As a result of
our Business Combination, our tax obligations may be more complex, burdensome and/or uncertain; | |
21
Risks
Relating to Acquiring or Operating a Business in Foreign Countries
| 
| 
| 
we may
not be able to complete an initial Business Combination because such initial Business Combination may be subject to regulatory review
and approval requirements, including foreign investment regulations and review by government entities such as the Committee on Foreign
Investment in the UnitedStates, or may be ultimately prohibited. | |
| 
| 
| 
if we
effect our initial Business Combination with a company located outside of the United States, we would be subject to a variety of
additional risks that may adversely affect us; | |
| 
| 
| 
we may
reincorporate in, or transfer by way of continuation to, another jurisdiction, which may result in taxes imposed on our shareholders
or Warrant holders. | |
| 
| 
| 
we may
reincorporate in or transfer by way of continuation to another jurisdiction in connection with our initial Business Combination,
and the laws of such jurisdiction may govern some or all of our future material agreements and we may not be able to enforce our
legal rights; | |
| 
| 
| 
we are
subject to changing law and regulations regarding regulatory matters, corporate governance and public disclosure that have increased
both our costs and the risk ofnon-compliance; | |
| 
| 
| 
if our
Management following our initial Business Combination is unfamiliar with United States securities laws, they may have to expend time
and resources becoming familiar with such laws, which could lead to various regulatory issues; | |
| 
| 
| 
exchange
rate fluctuations and currency policies may cause a target business ability to succeed in the international markets to be
diminished; | |
| 
| 
| 
after
our initial Business Combination, substantially all of our assets may be located in a foreign country and substantially all of our
revenue will be derived from our operations in such country. Accordingly, our results of operations and prospects will be subject,
to a significant extent, to the economic, political and legal policies, developments and conditions in the country in which we operate; | |
Risks
Relating to our Management Team
| 
| 
| 
our officers
and directors allocate their time to other businesses thereby causing conflicts of interest in their determination as to how much
time to devote to our affairs. This conflict of interest could have a negative impact on our ability to complete our initial Business
Combination; | |
| 
| 
| 
changes
in the market for directors and officers liability insurance could make it more difficult and more expensive for us
to negotiate and complete an initial Business Combination; | |
| 
| 
| 
we may
not have sufficient funds to satisfy indemnification claims of our directors and officers; | |
| 
| 
| 
past performance
by our Management Team, our advisors and their respective affiliates, including investments and transactions in which they have participated
and businesses with which they have been associated, may not be indicative of future performance of an investment in our Company; | |
| 
| 
| 
we are
dependent upon our officers and directors and their loss, or a reduction in the amount of time they can dedicate to our initial Business
Combination, could adversely affect our ability to operate; | |
| 
| 
| 
our ability
to successfully effect our initial Business Combination and to be successful thereafter is dependent upon the efforts of our key
personnel, some of whom may join us following our initial Business Combination. The loss of key personnel could negatively impact
the operations and profitability of our post-combinationbusiness; | |
| 
| 
| 
our key
personnel may negotiate employment or consulting agreements with a target business in connection with a particular Business Combination,
and a particular Business Combination may be conditioned on the retention or resignation of such key personnel. These agreements
may provide for them to receive compensation following our initial Business Combination and as a result, may cause them to have conflicts
of interest in determining whether a particular Business Combination is the most advantageous; | |
22
| 
| 
| 
our officers
and directors presently have, and any of them in the future may have additional, fiduciary or contractual obligations to other entities,
including other blank check companies, and, accordingly, may have conflicts of interest in allocating their time and in determining
to which entity a particular business opportunity should be presented; | |
| 
| 
| 
members
of our Management Team have significant experience as founders, board members, officers, executives or employees of other companies.
Certain of those persons have been, are currently, or may become, involved in litigation, investigations or other proceedings, including
related to those companies or otherwise. This may have an adverse effect on us, which may impede our ability to consummate an initial
Business Combination; | |
| 
| 
| 
members
of our Management Team and affiliated companies may have been, and may in the future be, involved in civil disputes or governmental
investigations unrelated to our business; | |
Risks
Relating to our Securities and Shareholder Rights
| 
| 
| 
to mitigate
the risk that we might be deemed to be an investment company for purposes of the Investment Company Act, we may, at any time (based
on our Management Teams ongoing assessment of all factors related to our potential status under the Investment Company Act),
instruct the trustee to liquidate theinvestmentsheld in the Trust Account and instead to hold the funds in the Trust
Account in an interest-bearing demand deposit account at a bank until the earlier of the consummation of our initial Business Combination
or our liquidation. As a result, following the liquidation of investments in the Trust Account, we will likely receive less interest
on the funds held in the Trust Account than we would have had the Trust Account remained as initially invested, such that our Public
Shareholders would receive less upon any redemption or liquidation of our Company than what they would have received had the investments
not been liquidated; | |
| 
| 
| 
our Public
Shareholders may be held liable for claims by third parties against us to the extent of distributions received by them upon redemption
of their Public Shares; | |
| 
| 
| 
if third
parties bring claims against us, the proceeds held in the Trust Account could be reduced and theper-shareredemption amount
received by Public Shareholders may be less than the Redemption Price; | |
| 
| 
| 
our directors
may decide not to enforce the indemnification obligations of our Sponsor, resulting in a reduction in the amount of funds in the
Trust Account available for distribution to our Public Shareholders; | |
| 
| 
| 
if, before
distributing the proceeds in the Trust Account to our Public Shareholders, we file a bankruptcy or insolvency petition or an involuntary
bankruptcy or insolvency petition is filed against us that is not dismissed, the claims of creditors in such proceeding may have
priority over the claims of our shareholders and theper-share amount that would otherwise be received by our Public Shareholders
in connection with our liquidation may be reduced; | |
| 
| 
| 
if, after
we distribute the proceeds in the Trust Account to our Public Shareholders, we file a bankruptcy or insolvency petition or an involuntary
bankruptcy or insolvency petition is filed against us that is not dismissed, a liquidator or a bankruptcy, insolvency or other court
may seek to recover such proceeds, and the members of our Board of Directors may be viewed as having breached their fiduciary duties
to us or our creditors, thereby exposing the members of our Board of Directors and us to claims of punitive damages; | |
| 
| 
| 
an active
market for our public securities may not continue, which would adversely affect the liquidity and price of our securities, and our
shareholders may have limited liquidity and trading; | |
| 
| 
| 
since
our Sponsor, directors and officers and any other holder of our Founder Shares will lose their entire investment in us if our initial
Business Combination is not completed (other than with respect to any Public Shares they may acquire during or after the Initial
Public Offering), and because our Sponsor, officers and directors and any other holder of our Founder Shares may profit substantially
even under circumstances in which our Public Shareholders would experience losses in connection with their investment, a conflict
of interest may arise in determining whether a particular Business Combination target is appropriate for our initial Business Combination; | |
23
| 
| 
| 
the value
of the Founder Shares following completion of our initial Business Combination is likely to be substantially higher than the nominal
price paid for them, even if the trading price of our Public Shares at such time is substantially less than the Redemption Price; | |
| 
| 
| 
Nasdaq
may delist our securities from trading on its exchange, which could limit our shareholders ability to make transactions in our securities
and subject us to additional trading restrictions; | |
| 
| 
| 
our Public
Shareholders do not have any rights or interests in funds from the Trust Account, except under certain limited circumstances. Therefore,
to liquidate their investment, they may be forced to sell their Public Shares or Public Warrants, potentially at a loss; | |
| 
| 
| 
our Sponsor
paid an aggregate of $25,000, or approximately $0.004 per Founder Share and, accordingly, our Public Shareholders experience immediate
and substantial dilution from the purchase of our ClassA Ordinary Shares; | |
| 
| 
| 
the nominal
purchase price paid by our Sponsor for the Founder Shares may result in significant dilution to the implied value of the Public Shares
upon the consummation of our initial Business Combination, and our Sponsor is likely to make a substantial profit on its investment
in us in the event we consummate an initial Business Combination, even if the Business Combination causes the trading price of our
Ordinary Shares to materially decline; | |
| 
| 
| 
because
we are incorporated under the laws of the Cayman Islands, our shareholders may face difficulties in protecting their interests, and
their ability to protect their rights through the U.S.Federal courts may be limited; | |
| 
| 
| 
after
our initial Business Combination, it is possible that a majority of our directors and officers will live outside the UnitedStates
and all of our assets will be located outside the UnitedStates; therefore, shareholders may not be able to enforce federal
securities laws or their other legal rights; | |
| 
| 
| 
provisions
in our Amended and Restated Articles may inhibit a takeover of us, which could limit the price investors might be willing to pay
in the future for our ClassA Ordinary Shares and could entrench Management; | |
| 
| 
| 
our Amended
and Restated Articles provide that the courts of the Cayman Islands will be the exclusive forums for certain disputes between us
and our shareholders, which could limit our shareholders ability to obtain a favorable judicial forum for complaints against
us or our directors, officers or employees; | |
| 
| 
| 
whether
a redemption of Public Shares will be treated as a sale of such ClassA Ordinary Shares for U.S.federal income tax purposes
will depend on a shareholders specific facts; | |
| 
| 
| 
we may
amend the terms of the Public Warrants in a manner that may be adverse to holders of Public Warrants with the approval by the holders
of at least 50% of the then outstanding Public Warrants. As a result, the exercise price of the Public Warrants could be increased,
the exercise period could be shortened and the number of ClassA Ordinary Shares purchasable upon exercise of a Public Warrant
could be decreased, all without shareholder approval; | |
24
| 
| 
| 
the Warrant
Agreement designatesthe courts of the State of NewYork or the UnitedStates District Court for the Southern District
of NewYork as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by holders of
our Warrants, which could limit the ability of warrant holders to obtain a favorable judicial forum for disputes with our Company; | |
| 
| 
| 
a provision
of the Warrant Agreement may make it more difficult for us to consummate an initial Business Combination; | |
| 
| 
| 
our Warrants
may have an adverse effect on the market price of our Class A Ordinary Shares and make it more difficult to effectuate our initial
Business Combination; | |
| 
| 
| 
because
each Unit containsone-half of one Warrant and only a whole Warrant may be exercised, the Units may be worth less than units
of other SPACs; | |
| 
| 
| 
Warrant
holders will not be permitted to exercise their Warrants unless we register and qualify the underlying Class A Ordinary Shares or
certain exemptions are available; | |
| 
| 
| 
holders
may only be able to exercise Public Warrants on a cashless basis under certain circumstances, and if they do so, they
will receive fewer ClassA Ordinary Shares from such exercise than if they were to exercise such Public Warrants for cash; | |
| 
| 
| 
holders
of Class A Ordinary Shares are not entitled to vote on continuing our Company in a jurisdiction outside of the Cayman Islands; | |
| 
| 
| 
the grant
of registration rights to our Sponsor, Cantor and other holders of our Private Placement Warrants may make it more difficult to complete
our initial Business Combination, and the future exercise of such rights may adversely affect the market price of our ClassA
Ordinary Shares; | |
| 
| 
| 
we may
be a passive foreign investment company, which could result in adverse United States federal income tax consequences to our U.S.
shareholders; | |
| 
| 
| 
we are
an emerging growth company and a smaller reporting company within the meaning of the Securities Act, and if we take advantage of
certain exemptions from disclosure requirements available to emerging growth companies or smaller reporting companies, this could
make our securities less attractive to investors and may make it more difficult to compare our performance with other public companies; | |
| 
| 
| 
market
conditions, economic uncertainty or downturns could adversely affect our business, financial condition, operating results and our
ability to consummate a Business Combination; and | |
| 
| 
| 
| |
| 
| 
| 
changes
in international trade policies, tariffs and treaties affecting imports and exports may have a material adverse effect on our search
for an initial Business Combination target or the performance or business prospectsof a post-Business Combination company. | |
25
For
more detailed descriptions of these and other risks relating to our Company, see the section titled Risk Factors contained
in our (i) IPO Registration Statement and (ii) Quarterly Report on Form 10-Q for the quarterly period ended June
30, 2025, as filed with the SEC on August 14, 2025. As of the date of this Report,
there have been no material changes with respect to those risk factors, other than as set forth
below. Any of these previously disclosed risk factors could result in a significant or material adverse effect on our results
of operations or financial condition. Additional risks not presently known to us or that we currently deem immaterial may also affect
our ability to consummate an initial Business Combination. We may disclose changes to such risk factors or disclose additional risk factors
from time to time in our future filings with the SEC.
*Our search for an initial Business Combination,
and any target business with which we may ultimately consummate an initial Business Combination, may be materially adversely affected
by current global geopolitical conditions and armed conflicts in the Ukraine and Russia and in the Middle East between United States,
Israel and Iran and others, as well as by other events that are outside of our control.*
Our ability to find a potential
target business and the business of any company with which we may consummate a Business Combination could be materially and adversely
affected by events that are outside of our control. For example, UnitedStates and global markets have experienced and may continue
to experience volatility and disruption following the geopolitical instability resulting from the ongoing Russia-Ukraine conflict and
the recent conflict in the Middle East and Southwest Asia between the United States, Israel and Iran and others. Recent hostilities between
the United States, Israel and Iran and others have caused significant disruption in the normal flow of oil, refined petroleum products
and related commodities, with consequent price rises and associated economic volatility. In response to such conflicts, the North Atlantic
Treaty Organization (NATO) deployed additional military forces to eastern Europe, and the UnitedStates, the United
Kingdom, the European Union and other countries have announced various sanctions and restrictive actions against Russia, Belarus and related
individuals and entities, including the removal of certain financial institutions from the Society for Worldwide Interbank Financial Telecommunication
(SWIFT) payment system. Certain countries, including the UnitedStates, have also provided and may continue to provide military aid
or other assistance to Ukraine and to Israel, or have undertaken or will undertake military strikes in locations related to the conflicts,
including but not limited to Iran, and there have been retaliatory military responses, increasing geopolitical tensions among a number
of nations.
The invasion of Ukraine by
Russia and the escalation of the conflict involving the United States, Israel and Iran and others in the Middle East and Southwest Asia
and the resulting measures that have been taken, and could be taken in the future, by NATO, the UnitedStates, the United Kingdom,
the European Union, Israel and its neighboring states and other countries have created global security concerns that could have a lasting
impact on regional and global economies. Although the length and impact of the ongoing conflicts and geopolitical turmoil are highly unpredictable,
they could lead to market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as supply
chain interruptions, changes in consumer or producer purchasing behavior and increased cyber-attacks against U.S.companies. Additionally,
any resulting sanctions could adversely affect the global economy and financial markets and lead to instability and lack of liquidity
in capital markets.
Similarly, other events outside
of our control, including natural disasters, climate-related events and pandemic or health crises (such as the COVID-19 pandemic) may
arise from time to time, and any such events may cause significant volatility and declines in the global markets and have disproportionate
impacts to certain industries or sectors and disruptions to commerce (including economic activity, travel and supply chain), and may adversely
affect the global economy or capital markets.
Any of the abovementioned
factors, or any other negative impact on the global economy, capital markets or other geopolitical conditions resulting from the Russian
invasion of Ukraine, the escalation of the conflict involving the United States, Israel and Iran and others in the Middle East and Southwest
Asia and subsequent sanctions or related actions, could adversely affect our search for an initial Business Combination and any target
business with which we may ultimately consummate an initial Business Combination.
The extent and duration of
the ongoing conflicts, resulting sanctions and any related market disruptions are impossible to predict, but could be substantial, particularly
if current or new sanctions continue for an extended period of time, if geopolitical tensions result in expanded military operations on
a global scale or if there are disruptions in the supply of oil or other commodities.
Any such disruptions may also
have the effect of heightening many of the other risks described in this Item. If these disruptions or other matters of global concern
continue for an extensive period of time, our ability to consummate an initial Business Combination, or the operations of a target business
with which we may ultimately consummate an initial Business Combination, may be materially adversely affected. In addition, our ability
to consummate a transaction may be dependent on the ability to raise equity or debt financing, which may be impacted by these and other
events, including as a result of increased market volatility or decreased availability of third-party financing on acceptable terms or
at all.
26
*Military or other conflicts in Ukraine,
between the United States, Israel and Iran and others and other in the Middle East and Southwest Asia or other armed hostilities may lead
to increased volume and price volatility for publicly traded securities, or affect the operations or financial condition of potential
target companies, which could make it more difficult for us to consummate an initial Business Combination.*
Military or other conflicts in Ukraine, between
the United States, Israel and Iran and others in the Middle East, and Southwest Asia or other armed hostilities may lead to increased
volume and price volatility for publicly traded securities, or affect the operations or financial condition of potential target companies,
and to other company or industry-specific, national, regional or international economic disruptions and economic uncertainty, any of which
could make it more difficult for us to identify a Business Combination target and consummate an initial Business Combination on acceptable
commercial terms, or at all.
The
share price of the combined company may decline after our initial Business Combination below the initial value of the units sold in the
Initial Public Offering.
Each
Unit sold in the Initial Public Offering consists of one Class A Ordinary Share and one-half ofoneredeemable Public Warrant.
Of the proceeds we receive from our Initial Public Offering and from the sale of the Private Placement Warrants, $300,000,000 was placed
in the Trust Account. We will provide our Public Shareholders with the opportunity to redeem all or a portion of their Class A Ordinary
Shares in connection with the completion of our initial Business Combination, and potentially upon the occurrence of certain other events
prior to our initial Business Combination. We expect that the pro rata redemption price in any redemption will be approximately $10.00
per Public Share, without taking into account any interest or other income earned on such funds (less any withdrawals from accrued interest
on such account for income for taxes paid or other permitted purposes), although the per share redemption price may be less in certain
circumstances. As a result, Public Shareholders who purchased Units in our Initial Public Offering can anticipate receiving at least
$10.00 per ordinary share (without taking into account interest or income earned on the amounts held in the Trust Account, less any withdrawals
from accrued interest on such account) at the time of redemption for each share that they choose to redeem.
After
our initial Business Combination, there can be no assurance that our shareholders would be able to sell their Ordinary Shares for at
least $10.00 per share. The target business with which we consummate our initial Business Combination will likely be subject to many
material risks. Since we have not yet identified a target, the exact nature of those risks are unknown at this time. However, if any
of those risks materialize, or for other reasons, that target business may not perform as anticipated, and the share price of the combined
company may decline as a result. Even if the combined post-Business Combination companys financial performance is not less than
anticipated, the share price of the combined post-Business Combination company may decline due to market conditions or other factors.
In recent years, the share prices of many companies have fallen following a Business Combination. As a result, if you continue to hold
our shares through our initial Business Combination without redeeming such shares, we cannot assure our shareholders that the sale price
following our initial Business Combination will be greater than either the $10.00 per unit offering price or the anticipated $10.00 redemption
price (without taking into account interest or income earned on the amounts held in the Trust Account, less any withdrawals from accrued
interest on such account) of the shares included in the units in the Initial Public Offering.
The
securities in which we invest the funds held in the Trust Account could bear a negative rate of interest, which could reduce the interest
income available for payment of taxes or reduce the value of the assets held in trust such that the per-share redemption amount received
by Public Shareholders may be less than $10.00 per public share.
The
proceeds held in the Trust Account will initially be invested only in U.S.government treasury obligations with a maturity of 185days
or less or in money market funds meeting certain conditions under Rule2a-7 under the Investment Company Act which invest only in
direct U.S.government treasury obligations; the holding of these assets in this form is intended to be temporary and for the sole
purpose of facilitating the intended Business Combination and may at any time be held as cash or cash items, including in demand deposit
accounts at a bank. While short-term U.S.government treasury obligations currently yield a positive rate of interest, they have
briefly yielded negative interest rates in recentyears. Central banks in Europe and Japan pursued interest rates below zero in
recentyears, and the Open Market Committee of the Federal Reserve has not ruled out the possibility that it may in the future adopt
similar policies in the UnitedStates. In the event that we are unable to complete our initial Business Combination or make certain
amendments to our Amended and Restated Articles, our Public Shareholders are entitled to receive their pro-rata share of the proceeds
held in the Trust Account, plus any interest income (less income taxes payable, if any, and up to $100,000 of interest to pay dissolution
expenses). Negative interest rates could reduce the value of the assets held in trust such that the per-share redemption amount received
by Public Shareholders may be less than $10.00 per public share.
27
We
may seek to extend the Combination Period, which could reduce the amount held in our Trust Account and have adverse effects on our Company.
If
we are unable to consummate our initial Business Combination on or before May 1, 2027 we may seek shareholder approval to extend the
Combination Period by amending our Amended and Restated Articles. In such event, our Public Shareholders will be provided the opportunity
to have all or a portion of their Public Shares redeemed. Any redemptions will reduce the amount held in our Trust Account, the effect
of which may adversely affect our ability to consummate our initial Business Combination and may also impair our ability to maintain
our Nasdaq listing.
Item 1B. Unresolved Staff Comments.
Not
applicable.
Item 1C. Cybersecurity.
Although, as a blank check company, we do not have any operations, we are nonetheless subject to the risk of cybersecurity incidents. Among other things, the investments in our Trust Account and bank deposits may be vulnerable to such incidents, and we may depend on the digital technologies of third parties. We and third parties may be subject to cybersecurity attacks or security breaches. To the extent that we rely on the technologies of third parties, we depend upon the personnel and the processes of such third parties to protect against cybersecurity incidents, and we have no personnel or processes of our own for this purpose. In the event of a cybersecurity incident impacting us, our Management Team will report to the Board of Directors and provide updates on the Management Teams incident response plan for addressing and mitigating any risks associated with such an incident. As an early-stage company without significant investments in data security protection, we may not be sufficiently protected against such occurrences. We also lack sufficient resources to adequately protect against, or to investigate and remediate any vulnerability to, cyber incidents. It is possible that any of these occurrences, or a combination of them, could have material adverse consequences on our business and lead to financial loss. We have not encountered any cybersecurity incidents since our Initial Public Offering. In addition to our own cybersecurity risks, any proposed Business Combination target may have been subject to, or may in the future be subject to, cybersecurity incidents. 
Item 2. Properties.
Our
executive offices are located at 18 West 18th Street, New York, NY 10010, and our telephone number is (585) 910-2306. We currently
utilize office space provided by an affiliate of our Sponsor, provided to us free of charge. We consider our current office space adequate
for our current operations.
Item 3. Legal Proceedings.
To
the knowledge of our Management Team, there is no material litigation currently pending or contemplated against us, any of our officers
or directors in their capacity as such, or against any of our property.
Item 4. Mine Safety Disclosures.
Not
applicable.
28
PART
II
Item 5. Market for Registrants Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities.
| 
| 
(a) | 
Market
Information | |
Our
Units, Public Shares and Public Warrants are each traded on the Global Market tier of Nasdaq under the symbols RDAGU,
RDAG and RDAW, respectively. Our Units commenced public trading on May
1, 2025, and our Public Shares and Public Warrants commenced separate public trading on June
23, 2025.
| 
| 
(b) | 
Holders | |
On
March 25, 2026, there was one holder of record of our Units, one holder of record of our Class A Ordinary Shares, one holder
of record of our Class B Ordinary Shares and three holders of record of our Warrants.
| 
| 
(c) | 
Dividends | |
We
have not paid any cash dividends on our Ordinary Shares to date and do not intend to pay cash dividends prior to the completion of our
initial Business Combination. The payment of cash dividends in the future will be dependent upon our revenues and earnings, if any, capital
requirements and general financial condition subsequent to completion of our initial Business Combination. The payment of any cash dividends
subsequent to our initial Business Combination will be within the discretion of our Board of Directors at such time. In addition, our
Board of Directors is not currently contemplating and does not anticipate declaring any share dividends in the foreseeable future. Further,
if we incur any indebtedness in connection with our initial Business Combination, our ability to declare dividends may be limited by
restrictive covenants we may agree to in connection therewith.
| 
| 
(d) | 
Securities
Authorized for Issuance Under Equity Compensation Plans | |
None.
| 
| 
(e) | 
Performance
Graph | |
As
a smaller reporting company, we are not required to provide the information required by Regulation S-K Item 201(e).
| 
| 
(f) | 
Recent
Sales of Unregistered Securities | |
Simultaneously
with the closing of the Initial Public Offering and pursuant to the Private Placement Warrants Purchase Agreements, we completed the
sale of an aggregate of 7,280,000 Private Placement Warrants to the Sponsor and Cantor in the Private Placement at a purchase price of
$1.00 per Private Placement Warrant, generating gross proceeds to us of $7,280,000. Of those 7,280,000 Private Placement Warrants, the
Sponsor purchased 4,640,000 Private Placement Warrants and Cantor purchased 2,640,000 Private Placement Warrants. The Private Placement
Warrants are identical to the Public Warrants, except as otherwise disclosed in the IPO Registration Statement. No underwriting discounts
or commissions were paid with respect to such sale. The issuance of the Private Placement Warrants was made pursuant to the exemption
from registration contained in Section 4(a)(2) of the Securities Act.
| 
| 
(g) | 
Use of Proceeds | |
For
a description of the use of proceeds generated in our Initial Public Offering and Private Placement, see Part II, Item 2 of our Quarterly
Report on Form 10-Q for the quarterly period ended March 31, 2025, as filed with the SEC on June 16, 2025. There has been no material
change in the planned use of proceeds from our Initial Public Offering and Private Placement as described in the IPO Registration Statement.
The specific investments in our Trust Account may change from time to time.
| 
| 
(h) | 
Purchases
of Equity Securities by the Issuer and Affiliated Purchasers | |
There
were no purchases of our equity securities by us or an affiliate during the fourth quarter of the fiscal year covered by the Report.
Item 6. [Reserved]
29
Item
7. Managements Discussion and
Analysis of Financial Condition and Results of Operations.
Cautionary
Note Regarding Forward-Looking Statements
All
statements other than statements of historical fact included in this Report including, without limitation, statements under this Item
regarding our financial position, possible Business Combinations and the financing thereof, and related matters, and the plans and objectives
of Management for future operations, are forward-looking statements within the meaning of Section 27A of the Securities Act and Section
21E of the Exchange Act. When used in this Report, words such as may, should, could, would,
anticipate, believe, estimate, expect, intend and similar expressions,
as they relate to us or our Management, identify forward-looking statements. We have based these forward-looking statements on our Managements
current expectations and projections about future events, as well as assumptions made by, and information currently available to our
Management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors
detailed in our filings with the SEC. All subsequent written or oral forward-looking statements attributable to us or persons acting
on our behalf are qualified in their entirety by this paragraph.
The
following discussion and analysis of our financial condition and results of operations should be read in conjunction with the financial
statements and the notes thereto included elsewhere in this Report.
Overview
We
are a blank check company incorporated in the Cayman Islands on January 23, 2025 for the purpose of effecting a Business Combination.
Our Sponsor is Republic Sponsor 1 LLC.
Although
we are not limited in our search for target businesses to a particular industry or sector for the purpose of consummating the Business
Combination, we are focusing our search on industries that complement our Management Teams background in fintech, software and
cryptocurrency. We are an early stage and emerging growth company and, as such, we are subject to all of the risks associated with early
stage and emerging growth companies. We expect to continue to incur significant costs in the pursuit of our acquisition plans. There
can be no assurance that our plans to complete a Business Combination will be successful.
Our
IPO Registration Statement became effective on April 30, 2025. On May 1, 2025, we consummated our Initial Public Offering of 30,000,000
Units, including 3,600,000 Option Units issued pursuant to the partial exercise of the Over-Allotment Option. Each Unit consists of one
Public Share and one-half of one Public Warrant. The Units were sold at a price of $10.00 per Unit, generating gross proceeds to us of
$300,000,000.
Simultaneously
with the closing of the Initial Public Offering and pursuant to the Private Placement Warrants Purchase Agreements, we completed the
sale of an aggregate of 7,280,000 Private Placement Warrants to the Sponsor and Cantor in the Private Placement at a purchase price of
$1.00 per Private Placement Warrant, generating gross proceeds to us of $7,280,000. Of those 7,280,000 Private Placement Warrants, the
Sponsor purchased 4,640,000 Private Placement Warrants and Cantor purchased 2,640,000 Private Placement Warrants. The Private Placement
Warrants are identical to the Public Warrants, except as otherwise disclosed in the IPO Registration Statement.
Following
the closing of the Initial Public Offering and Private Placement, an amount of $300,000,000 from the net proceeds of the Initial
Public Offering and the Private Placement was initially placed in the Trust Account located in the United States with Continental acting
as trustee. The Trust Account may be invested only (i) in U.S. government securities, within the meaning set forth in Section 2(a)(16)
of the Investment Company Act with a maturity of 185 days or less, (ii) in any open-ended investment company that holds itself out as
a money market fund selected by us meeting the conditions of paragraphs (d)(2), (d)(3) and (d)(4) of Rule 2a-7 of the Investment Company
Act, or (iii) as cash or cash items (including in demand deposit accounts) at a bank as determined by us, until the earlier of: (x) the
completion of the Business Combination and (y) the distribution of the Trust Account, as described below.
30
We
have until May 1, 2027 (24 months from the closing of the Initial Public Offering), or until such (x) earlier date as our Board may approve
or (y) later date as our shareholders may approve, pursuant to the Amended and Restated Articles, to consummate the Business Combination.
If we are unable to complete the Business Combination by the end of the Combination Period, we 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
earned on the funds held in the Trust Account and not previously released to us to pay taxes, if any, 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 our remaining shareholders and our Board, dissolve and liquidate, subject, in each case,
to our obligations under Cayman Islands law to provide for claims of creditors and the requirements of other applicable law.
We
may seek to extend the Combination Period consistent with applicable laws, regulations and stock exchange rules by amending our
Amended and Restated Articles. Any such amendment would require the approval of our shareholders, and our Public Shareholders will be provided the opportunity to redeem all or a portion of their Public Shares in connection with the vote on such approval.
Such redemptions will decrease the amount held in our Trust Account and our capitalization, and may affect our ability to maintain
our listing on Nasdaq. In addition, the Nasdaq Rules currently require SPACs (such as us) to complete their initial Business
Combination in accordance with the Nasdaq 36-Month Requirement. If we do not meet the Nasdaq 36-Month Requirement, our securities
will likely be subject to a suspension of trading and delisting from Nasdaq
Results
of Operations
We
have neither engaged in any operations nor generated any revenues to date. Our only activities since January 23, 2025 (inception) through
December 31, 2025 have been (i) organizational activities and (ii) activities relating to (x) the Initial Public Offering and (y) identifying
and evaluating prospective acquisition candidates and activities in connection with the initial Business Combination. We will not generate
any operating revenues until after completion of our initial Business Combination. We have generated non-operating income in the form
of interest income on investments held in the Trust Account after the Initial Public Offering. We expect to incur increased expenses
as a result of being a public company (for legal, financial reporting, accounting and auditing compliance, among other things), as well
as for due diligence expenses.
For
the period from January 23, 2025 (inception) through December 31, 2025, we had a net income $7,718,712, which consisted of earnings from
investments held in Trust Account of $8,053,817 and interest income - operating account of $24,001 offset by general and administrative
costs of $359,106.
Liquidity
and Capital Resources
Following
the Initial Public Offering, including the partial exercise of the Over-Allotment Option, and the Private Placement, a total of $300,000,000
was initially placed in the Trust Account. We incurred fees of $18,629,500, consisting of $5,280,000 of cash underwriting fee, $12,720,000
of deferred underwriting fee, and $629,500 of other offering costs.
For
the period from January 23, 2025 (inception) through December 31, 2025, cash used in operating activities was $387,853. Net income of
$7,718,712 was affected by payment of general and administrative costs through the IPO Promissory Note of $65,934 and earnings from investments
held in Trust Account of $8,053,817. Changes in operating assets and liabilities used $118,682 of cash.
As
of December 31, 2025, we had marketable securities held in the Trust Account of $308,053,817 (including $8,053,817 of interest income).
We may withdraw interest from the Trust Account to pay taxes, if any. We intend to use substantially all of the funds held in the Trust
Account, including any amounts representing interest earned on the Trust Account (which interest shall be net of income taxes payable,
if any, and exclude the Deferred Fee), to complete our Business Combination. To the extent that our share capital or debt is used, in
whole or in part, as consideration to complete our Business Combination, the remaining proceeds held in the Trust Account will be used
as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth strategies.
To
mitigate the risk that we might be deemed to be an investment company for purposes of the Investment Company Act, which risk increases
the longer that we hold investments in the Trust Account, we may, at any time, (based on our Management Teams ongoing assessment
of all factors related to our potential status under the Investment Company Act) instruct the trustee to liquidate the investments held
in the Trust Account and instead to hold the funds in the Trust Account in cash or in an interest-bearing demand deposit account at a
bank.
As
of December 31, 2025, we had marketable securities held in the Trust Account of $308,053,817 (including $8,053,817 of interest income).
We use the funds held outside the Trust Account primarily to identify and evaluate target businesses, perform business due diligence
on prospective target businesses, travel to and from the offices, plants, or similar locations of prospective target businesses or their
representatives or owners, review corporate documents and material agreements of prospective target businesses, and structure, negotiate
and complete a Business Combination.
31
Our
liquidity needs through December 31, 2025 have been satisfied through (i) a contribution of $25,000 from the Sponsor in exchange for
the issuance of our Founder Shares, (ii) a loan pursuant to the IPO Promissory Note, and (iii) the net proceeds from the consummation
of the Private Placement not held in the Trust Account.
*Promissory
Note*
Prior
to the closing of our Initial Public Offering, our Sponsor agreed to loan us an aggregate of up to $300,000 under the IPO Promissory
Note to cover expenses related to the Initial Public Offering. Such loans and advances were non-interest bearing and payable on the earlier
of December 31, 2025 or the completion of our Initial Public Offering. The loan of $294,256 was fully repaid upon the consummation of
our Initial Public Offering on May 5, 2025. No additional borrowing is available under the IPO Promissory Note.
*Working
Capital Loans*
In
order to fund working capital deficiencies or finance transaction costs in connection with a Business Combination, the Sponsor, or certain
of our officers and directors or their affiliates may, but are not obligated to, loan us Working Capital Loans, as may be required. If
we complete a Business Combination, we will repay such Working Capital Loans. In the event that a Business Combination does not close,
we may use a portion of the working capital held outside the Trust Account to repay such Working Capital Loans, but no proceeds from
our Trust Account would be used for such repayment. Up to $1,500,000 of such Working Capital Loans may be converted into warrants of
the post-Business Combination entity at a price of $1.00 per warrant. The warrants would be identical to the Private Placement Warrants.
As of December 31, 2025, we did not have any borrowings under any Working Capital Loans.
**
*Contractual
Obligations*
**
We
do not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities, other than as follows:
**
*Underwriting
Agreement*
We
granted the Underwriters a 45-day option from the date of the Initial Public Offering to purchase up to an additional 3,960,000 Option
Units to cover over-allotments, if any. On May 1, 2025, the Underwriters partially exercised their Over-Allotment Option., with 45 days
to purchase the remaining 360,000 Option Units. On June 15, 2025, the remaining Over-Allotment Option expired worthless.
The
Underwriters of the Initial Public Offering are entitled to a deferred underwriting discount of (i) 4.0% of the gross proceeds of the
Initial Public Offering, other than the proceeds pursuant to the Over-Allotment Option and (ii) 6.0% of the gross proceeds pursuant to
the Over-Allotment Option, or $12,720,000 in the aggregate, payable upon the closing of an initial Business Combination, but such Deferred
Fee shall be due solely on amounts remaining in the Trust Account following all properly submitted shareholder redemptions in connection
with the consummation of our initial Business Combination pursuant to the Underwriting Agreement.
*Registration
Rights Agreement*
The
holders of (i) the Founder Shares, (ii) the Private Placement Warrants and (iii) any private placement-equivalent warrants issued in
connection with the Working Capital Loans, if any (and in each case holders of their underlying securities, as applicable) are entitled
to registration rights pursuant to the Registration Rights Agreement, requiring us to register such securities for resale (in the case
of the Founder Shares, only after conversion to our Class A Ordinary Shares). The holders of the majority of these securities are entitled
to make up to three demands, excluding short form demands, that we register such securities. In addition, the holders have certain piggyback
registration rights with respect to registration statements filed subsequent to the consummation of a Business Combination and rights
to require us to register for resale such securities pursuant to Rule 415 under the Securities Act. Cantor may only make a demand on
one occasion and only during the five-year period beginning on the effective date of the IPO Registration Statement. In addition, Cantor
may participate in a piggyback registration only during the seven-year period beginning on the effective date of the IPO
Registration Statement. We will bear the expenses incurred in connection with the filing of any such registration statements.
*Letter
Agreement*
Our
Sponsor, directors and officers have entered into the Letter Agreement with us, pursuant to which, they have waived their rights to liquidating
distributions from the Trust Account with respect to any Founder Shares held by them if we fail to complete our initial Business Combination
within the Combination Period. However, if they acquire Public Shares in or after the Initial Public Offering, they will be entitled
to liquidating distributions from the Trust Account with respect to such Public Shares if we fail to complete our initial Business Combination
within the Combination Period.
32
Additionally,
pursuant to the Letter Agreement, our Sponsor, directors and officers will not propose any amendment to our Amended and Restated Articles
to modify (i) the substance or timing of our obligation to allow redemption in connection with our initial Business Combination or to
redeem 100% of our Public Shares if we do not complete our initial Business Combination within the Combination Period or (ii) any other
material provisions relating to shareholders rights or pre-initial Business Combination activity, unless we provide our Public
Shareholders with the opportunity to redeem their Public Shares upon approval of any such amendment at a per-share price, payable in
cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account
and not previously released to us to pay our taxes, divided by the number of then outstanding Public Shares.
Critical
Accounting Estimates and Standards
We
have identified the following as our critical accounting policies. See our financial statements and notes thereto included elsewhere
in this Report for additional information regarding these critical accounting policies and other significant accounting policies.
*Use
of Estimates*
The
preparation of the financial statements and notes thereto included elsewhere in this Report in conformity with GAAP requires Management
to make estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses, and the disclosure
of contingent assets and liabilities, in our financial statements. These accounting estimates require the use of assumptions about matters,
some of which are highly uncertain at the time of estimation. Management bases its estimates on historical experience and on various
other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments, and
we evaluate these estimates on an ongoing basis. To the extent actual experience differs from the assumptions used, our financial statements
and notes thereto included elsewhere in this Report could be materially affected. We believe that the following accounting policies involve
a higher degree of judgment and complexity. As of December 31, 2025, we did not have any critical accounting estimates to be disclosed.
*Class
A Ordinary Shares Subject to Possible Redemption*
We
account for the Class A Ordinary Shares subject to possible redemption in accordance with the guidance in FASB ASC Topic 480, Distinguishing
Liabilities from Equity**. Class A Ordinary Shares subject to mandatory redemption (if any) are classified as liability instruments
and measured at fair value. Conditionally redeemable Class A Ordinary Shares (including Class A 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
our control) are classified as temporary equity. At all other times, Class A Ordinary Shares are classified as shareholders equity.
All of the Public Shares feature certain redemption rights that are considered to be outside of our control and subject to the occurrence
of uncertain future events. Accordingly, Class A Ordinary Shares subject to possible redemption are presented at redemption value as
temporary equity, outside of the shareholders equity section of our balance sheet included elsewhere in this Report.
*Net
Income Per Ordinary Share*
We
comply with the accounting and disclosure requirements of FASB ASC Topic 260, Earnings Per Share. Net income per Ordinary
Share is computed by dividing net income applicable to shareholders by the weighted average number of Ordinary Shares outstanding for
the applicable periods. We apply the two-class method in calculating earnings per Ordinary Share and allocate net income pro rata to
Class A Ordinary Shares subject to possible redemption, nonredeemable Class A Ordinary Shares and Class B Ordinary Shares. Accretion
associated with the redeemable Class A Ordinary Shares is excluded from earnings per share as the redemption value is not in excess of
the fair value.
*Recent
Accounting Standards*
In
November 2024, the FASB issued ASU 2024-03, requiring public entities to disclose additional information about specific expense categories
in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December
15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating
the impact of adopting ASU 2024-03
Management
does not believe that there are any other recently issued, but not yet effective, accounting standards, which, if currently adopted,
would have a material effect on the financial statements and notes thereto included elsewhere in this Report.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk.
We
are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise
required under this Item.
Item 8. Financial Statements and Supplementary Data.
Reference
is made to pages F-1 through F-19 comprising a portion of this Report, which are incorporated herein by reference.
33
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
None.
Item 9A. Controls and Procedures.
Evaluation
of Disclosure Controls and Procedures
Disclosure
controls and procedures are designed with the objective of ensuring that information required to be disclosed in our reports filed under
the Exchange Act, such as this Report, is recorded, processed, summarized, and reported within the time periods specified in the SECs
rules and forms. Disclosure controls and procedures are also designed with the objective of ensuring that such information is accumulated
and communicated to our Management, including our Certifying Officers, as appropriate, to allow timely decisions regarding required disclosure.
Under the supervision and with the participation of our Management, including our Certifying Officers, we carried out an evaluation of
the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under
the Exchange Act. Based on the foregoing, our Certifying Officers concluded that our disclosure controls and procedures were effective
as of December 31, 2025.
We
do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and
procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the
disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there
are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure
controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all
our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain
assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated
goals under all potential future conditions.
Managements
Annual Report on Internal Control over Financial Reporting
This
Report does not include a report of Managements assessment regarding internal control over financial reporting or an attestation
report of our registered public accounting firm due to a transition period established by the rules of the SEC for newly public companies.
Changes
in Internal Control over Financial Reporting
Not
applicable.
Item 9B. Other Information.
Trading
Arrangements
During the quarterly period ended December 31, 2025, none of our directors or officers (as defined in Rule16a-1(f) promulgated under theExchange Act) adopted or terminated any Rule 10b5-1 trading arrangement or any non-Rule 10b5-1 trading arrangement, as each term is defined in Item408(a)ofRegulation S-K. 
Additional
Information
None.
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.
Not
applicable.
34
PART
III
Item 10. Directors, Executive Officers and Corporate Governance.
Directors
and Executive Officers
As
of the date of this Report, our directors and officers are as follows:
| 
Name | | 
Age | | 
Position | |
| 
Joseph Naggar | | 
55 | | 
Chief Executive Officer, Chief
Investment Officer and Director | |
| 
Robert Urgo | | 
57 | | 
Chief Financial Officer | |
| 
Jonathan Knipper | | 
40 | | 
Chief Operating Officer | |
| 
Darren Sandler | | 
36 | | 
General Counsel | |
| 
James Newman | | 
39 | | 
Vice President | |
| 
Armaan Gori | | 
27 | | 
Vice President | |
| 
Andrew Durgee | | 
42 | | 
Director | |
| 
Laya Khadjavi | | 
62 | | 
Director | |
| 
Barry Finkelstein | | 
62 | | 
Director | |
| 
Robert Matza | | 
69 | | 
Director | |
The
experience of our directors and executive officers is as follows:
Joseph
Naggarhas served as our Chief Executive Officer, Chief Investment Officer and a Director since inception. Mr.Naggar currently
serves as Chief Executive Officer and Chief Investment Officer at FPAM. Previously, Mr.Naggar served multiple roles at GoldenTree
Asset Management, including as a member of GoldenTree Asset Managements Executive Committee and Macro Committee. Most recently,
he served as Head of Digital Assets of GoldenChain, GoldenTree Asset Managements wholly owned subsidiary managing digital asset.
Mr.Naggar has been investing in digital assets personally since 2013, and in a professional capacity since 2022. From 2007 to 2023,
under Mr.Naggars direction, GoldenTree Asset Management built highly sophisticated, proprietary systems to analyze opportunities
in CLOs and, more recently, digital assets. In 2007, Mr.Naggar established a dedicated team focused on structured products at GoldenTree
and as of January2024, structured product investments at GoldenTree had grown to over $7billion. Prior to joining GoldenTree,
Mr.Naggar was a Managing Director at Morgan Stanley [NYSE: MS] in its Global Fixed Income Division with a focus on asset backed
securities. Mr.Naggar holds an MBA from the MIT Sloan School of Business with a concentration in Financial Engineering and a BS
from the Pennsylvania State University in Mechanical Engineering through the University Scholars program.
Robert
Urgo, has served as our Chief Financial Officer since October 2025. Mr. Urgo is a seasoned professional with extensive financial
and management expertise. In addition to his role at our Company, Mr. Urgo serves as the Chief Financial Officer of FPAM, a position
he has held since August 2025. Prior to FPAM, Mr. Urgo spent 20 years at Morgan Stanley [NYSE:MS] in the Finance Division, a position
he held from February 2004 until December 2024. Upon his departure from Morgan Stanley, Mr. Urgo was a Managing Director who supported
Fixed Income and Commodities Sales and Trading, where he was the Chief Financial Officer of the CFTC Swap Dealer. Prior to joining Morgan
Stanley, Mr. Urgo was in the Finance Division of Goldman Sachs supporting Sales and Trading, a position he held from January 1994 until
December 2003. Mr. Urgo holds a Bachelor of Science in Accounting from Rutgers Universitys school of Business School, where he
graduated with honors.
Jonathan
Knipper, our Chief Operating Officer since inception, has served as Chief Operating Officer at FPAM since March2024, where
he oversees the firms legal, finance, operations and engineering teams. Additionally, from August 2022 to June2024,
he served as Portfolio Manager of the RxR Opportunities Fund, a fundamentals-drivendirectional liquid fund in the blockchain space.
From January 2024 through September 2025, Mr.Knipper served as Director of Republic Markets Jersey Limited, a Republic entity focused on
market access and a regulated VASP, as well as Director of Republic Node Jersey Limited, a Republic SPV focused on blockchain technology
and a regulated VASP.Previously, from 2016 to December2019, Mr.Knipper was co-founderat TLDR, a global blockchain
advisory firm, and from 2010 to 2016, he worked at Goldman Sachs [NYSE:GS] and Morgan Stanley [NYSE:MS], focusing on FX and
interest rate derivatives. Mr.Knipper holds a BA in economics and finance from NewYork University.
35
Darren Sandler, our
General Counsel since inception, has served as General Counsel at Feynman Point Asset Management since March2024. Previously, he
served as Associate General Counsel for OpenDeal Inc., where he worked from December2020 to March2024. From October2019
to December2020, he served as Head of Legal at Gallant Exchange, a digital asset trading platform. Prior to that, Mr.Sandler
was an Associate in the investment management groups at Kirkland& Ellis LLP and at Schulte Roth& Zabel LLP.Mr.Sandler
holds a JD from the University of Pennsylvania Law School and a BA in economics from Brandeis University.
James
Newman, our Vice President since inception, serves as a Co-Managing Partner of Republic Superscrypt, a digital asset fund, European
CEO & Executive Vice President of Operations (COO) at Republic since November 2024. In addition, Mr. Newman has served on the board of directors of Pall
Mall Corporation Limited since September 2025. Previously, he held various roles in the Alan
Howard ecosystem from 2021 to 2024, including Principal Investing at Brevan Howard and a founding team member at WebN Group, an incubation
studio, and restructuring and implementing operational policies at Elwood, an execution management system and portfolio management system
provider throughout 2024. Prior to his longstanding involvement in Web3 and Digital Assets Markets, Mr. Newman accrued 15 years of investment
banking experience across multi-asset trading, derivative, sales and structuring desks at UBS, HSBC & RBS. Since 2021 he has served
on the Digital Economy Initiative Advisory Council and as an advisor to Saltford FC. Mr. Newman is a CFA charterholder, holds a Masters
in Finance (Distinction) and a BA (Hons) in Economics from Durham University.
Armaan
Gori, our Vice President since inception has served as Senior Portfolio Manager at Feynman Point Asset Management since March 2024.
Previously, Mr.Gori served as senior analyst at GoldenChain with a particular focus on crypto equity trading and on-chaininvestments.
Prior to that, from 2022 to 2023, Mr.Gori was Founder and Chief Investment Officer of It Investments, a digital asset investment
firm, where he deployed capital for institutional investors leveraging a proprietary software system that he built to manage the portfolio
on a 24/7 basis. Prior to founding It, from 2020 to 2022, Mr.Gori was an analyst on the Structured Products desk at GoldenTree,
focusing primarily on CLOs and bespoke asset backed securitizations. Mr.Gori holds a BS from MIT in Computer Science and Engineering.
Andrew
Durgee, one of our directors since inception, has served as President of Republic since 2023 and co-CEO of Republic since January
2025. From 2017 to 2023, he served as Head of Republic Crypto, where he led business and engineering strategy. Prior to joining Republic
Crypto in 2017, Mr.Durgee served as a Partner at TLDR, a global blockchain advisory firm. He entered crypto in early 2010, pioneering
a number of nascent blockchain technologies including an industry-firstmulti-signaturewallet repository. Since January 2021,
Mr.Durgee has served as Chairman of the Board at Everyrealm, a Metaverse development company as well as a Director at Upside, a
tokenization development company. Since April 2023, he has been a Director at 3thix, a blockchain adtech company, and since November
2016 he has been Chief Executive Officer of Durgee Consulting, a technology consulting company. Mr.Durgee studied Management Engineering
at Worcester Polytechnic Institute.
Laya
Khadjavi, who has served on our board as of the date our securities began trading on Nasdaq, is a Fellow at Harvards Advanced
Leadership Initiative since August2024. Previously, she was Head of Strategic Partnerships and on the Executive Team at Menai Financial
Group from February2021 to October2023. Ms. Khadjavi has been a board member of GoldenTree ABS Management LLC since 2017.
From 2012 to 2016, she was Chief Operating Officer and Head of Strategy at ICE Canyon, a global investment management firm specializing
in Emerging Markets. Prior to that, Ms. Khadjavi spent 23years at Morgan Stanley [NYSE:MS], where she held a succession of
senior management positions within Institutional Securities and Global Wealth Management divisions. She holds a BS in Applied Mathematics-Economicsand
completed requirements for a BA in French Literature from Brown University, and an MBA from Columbia University. She is well qualified
to serve as a director due to her extensive finance, investment and management experience.
Barry
Finkelstein, who has served on our board as of the date our securities began trading on Nasdaq, served as head of Digital Investment
Banking and Advisory at Makor/Enigma, an international agency brokerage group, from May2022 to June2023. Previously, from
January2020 to May2022, he led North American business development and capital market initiatives at Algorand Inc., a blockchain
technology company. From January2017 to January2020, Mr.Finkelstein was a partner at 23 Capital, a capital and solutions
provider focused on sports, music and entertainment. From February2004 to December2016, he served as Managing Director at
UBS AG [NYSE:UBS], heading the Fixed Income Distribution/Structured Products and Solutions group. Previously, Mr.Finkelstein
headed the Wealth Management and Private Bank Distribution effort in the Americas for the Fixed Income division of UBS AGs Investment
Bank. Prior to joining UBS in 2004, Mr.Finkelstein headed Merrill Lynchs Fixed Income Structured Repackaging and Synthetic
Credit businesses. Mr.Finkelstein spent fiveyears heading Merrill Lynchs Municipal Reinvestment desk and has more
than thirty fiveyears of experience distributing, structuring and trading derivative products. Mr.Finkelstein began his career
as a trader of interest rate swaps and options. Mr.Finkelstein attended the University of Michigan and holds a Bachelor of Science
in Economics and Accounting from Claremont McKenna College. He is well qualified to serve as a director due to his extensive finance
and investment experience.
36
Robert
Matza, who has served on our board as of the date our securities began trading on Nasdaq, has worked in various senior management
and financial roles at several financial services businesses throughout his career. Since June 2019 he has served as a director of Osaic,
a private wealth management services firm. From 2006 to 2019, Mr.Matza served as President, Partner and Executive Committee member
of GoldenTree Asset Management LP, an international asset management firm. Prior to this, he served as President, Chief Operating Officer
and Board member at Neuberger Berman, as Treasurer of Travelers Group [NYSE: TRV] and Deputy Treasurer of Citigroup [NYSE: C]. Mr.Matza
held various positions at Lehman Brothers over the course of 16 years, including Managing Director, Chief Financial Officer and Operating
Committee member. He served as a director of FinServ Acquisition Corp., a SPAC, which on June9, 2021 consummated a business combination
with Katapult Holdings, Inc. [NASDAQ:KPLT], a lease purchase platform. The transaction included $150million of PIPE financing,
and only 6,338 of the 25,665,000 outstanding public shares of FinServ Acquisition Corp. were redeemed. As of March27, 2025, KPLT
traded at $11.11 per share. Mr.Matza also served as a director of FinServ Acquisition Corp. II, a SPAC, which, in connection with
a proposal to extend the date by which it would be required to consummate a business combination from February22, 2023 to August22,
2023, approximately 99% of the public shares were redeemed. Thereafter, in November 2023, FinServ Acquisition Corp. II was liquidated
and returned funds held in its trust account to its stockholders. Mr.Matza holds a BS in Accounting from the University at Albany
and an MBA from NewYork University. He is well qualified to serve as a director due to his extensive management and finance experience.
Advisor
Leon
Wagner, our advisor, has been the principal of LWPartners Futuro LLC, his family office, as well as its predecessors, since 2010,
and since 2020 he has been an associated person of Watermill Institutional Trading LLC, a registered broker-dealer. From 2000 to 2010,
Mr.Wagner served as a Founding Partner and Chairman of GoldenTree Asset Management, LP, an asset manager of credit-basedassets.
From 1993 to 2000, he worked for and helped build CIBC World Markets into a Top Ten High Yield Underwriter. Prior to that, Mr.Wagner
worked at Drexel Burnham Lambert, assisting in the financing of industries such as cable television, cellular telephony, gaming, housing,
and healthcare. Mr.Wagner was presented The Gustave L.Levy Award by the Wall Street Division of the UJA-Federationof
NewYork in recognition of manyyears of community service, philanthropy and leadership, and he supports The Hospital for Special
Surgeries (HSS), The United Jewish Federations of NewYork, The Christian Community School of Eaton, Ohio and Shalva, Israels
National Disability Center among others. Mr.Wagner holds a BA from Lafayette College and an MBA from the University of Chicago
Graduate School of Business.
We
currently expect our advisor to (i)assist us in sourcing and negotiating with potential Business Combination targets and (ii)provide
business insights when we assess potential Business Combination targets. In this regard, he will fulfill some of the same functions as
our board members. However, he has no written advisory agreements with us. Our advisor indirectly owns a pecuniary interest the Founder
Shares held by the Sponsor, but is not currently party to any agreements to receive additional compensation. Our advisor will not be
under any fiduciary obligations to us nor will he perform board or committee functions. He will also not be required to devote any specific
amount of time to our efforts or be subject to the fiduciary requirements to which our board members are subject. Accordingly, if our
advisor becomes aware of a Business Combination opportunity which is suitable for any of the entities to which he has fiduciary or contractual
obligations (including other blank check companies), he will honor his fiduciary or contractual obligations to present such Business
Combination opportunity to such entity, and only present it to us if such entity rejects the opportunity. We may modify or expand our
roster of advisors as we source potential Business Combination targets or create value in businesses that we may acquire.
*Family
Relationships*
No
family relationships exist between any of our directors or executive officers.
*Involvement
in Certain Legal Proceedings*
There
are no material proceedings to which any director or executive officer has been involved in the last ten years that are material to an
evaluation of the ability or integrity of any director or officer.
Number
and Terms of Office of Officers and Directors
Our
Board of Directors consists of five members and is divided into three classes with only one class of directors being appointed in each
year, and with each class (except for those directors appointed prior to our first annual general meeting) serving a three-yearterm.
Prior to the closing of our initial Business Combination, only holders of our ClassB Ordinary Shares will be entitled to vote on
the appointment and removal of directors or continuing our Company in a jurisdiction outside the Cayman Islands (including any Special
Resolution required to amend our constitutional documents or to adopt new constitutional documents, in each case, as a result of our
approving a transfer by way of continuation in a jurisdiction outside the Cayman Islands). Holders of our Public Shares will not be entitled
to vote on such matters during such time. These provisions of our Amended and Restated Articles relating to these rights of holders of
ClassB may be amended by a special resolution passed by the affirmative vote of at least 90% (or, where such amendment is proposed
in respect of the consummation of our initial Business Combination, two-thirds) of the votes cast by such shareholders as, being entitled
to do so, vote in person or, where proxies are allowed, by proxy at the applicable general meeting of our Company, voting together as
a single class. In accordance with Nasdaq corporate governance requirements, we are not required to hold an annual general meeting until
one year after our first fiscal year end following our listing on Nasdaq. The term of office of the first class of directors, which consists
of Ms. Khadjavi and Mr.Matza, will expire at our first annual general meeting. The term of office of the second class of directors,
which consists of Mr.Finkelstein, will expire at the second annual general meeting. The term of office of the third class of directors,
which consists of Messrs. Durgee and Naggar, will expire at the third annual general meeting.
Our
officers are appointed by the Board of Directors and serve at the discretion of the Board of Directors, rather than for specific terms
of office. Our Board of Directors is authorized to vote to appoint officers as it deems appropriate pursuant to our Amended and Restated
Articles.
37
Committees
of the Board of Directors
Our
Board of Directors has two standing committees: an audit committee and a compensation committee. Subject to phase-inrules, the
rules of Nasdaq and Rule10A-3of the ExchangeAct require that the audit committee of a listed company be comprised solely
of independent directors. Each committee operates under a charter that has been approved by our board and will have the composition and
responsibilities described below.
**
*Audit
Committee*
Our
board of director has established an audit committee of the Board of Directors. Ms. Khadjavi and Messrs. Matza and Finkelstein serve
as the members of our audit committee. Under the Nasdaq listing standards and applicable SEC rules, we are required to have three members
of the audit committee, all of whom must be independent. Ms. Khadjavi and Messrs. Matza and Finkelstein are each independent. Ms. Khadjavi
serves as the chair of the audit committee. Each member of the audit committee is financially literate and our Board of Directors has
determined that Ms. Khadjavi qualifies as an audit committee financial expert as defined in applicable SEC rules.
We
will adopt an audit committee charter, which will detail the principal functions of the audit committee, including:
| 
| assisting
board oversight of (1)the integrity of our financial statements, (2)our compliance
with legal and regulatory requirements, (3)our independent registered public accounting
firms qualifications and independence, and (4)the performance of our internal
audit function and independent registered public accounting firm; the appointment, compensation,
retention, replacement, and oversight of the work of the independent registered public accounting
firm and any other independent registered public accounting firm engaged by us; | |
| 
| pre-approvingall
audit and non-auditservices to be provided by the independent registered public accounting
firm or any other registered public accounting firm engaged by us, and establishing pre-approvalpolicies
and procedures; reviewing and discussing with the independent registered public accounting
firm all relationships the independent registered public accounting firm have with us in
order to evaluate their continued independence; | |
| 
| setting
clear policies for audit partner rotation in compliance with applicable laws and regulations;
obtaining and reviewing a report, at least annually, from the independent registered public
accounting firm describing (1)the independent registered public accounting firms
internal quality-controlprocedures and (2)any material issues raised by the most
recent internal quality-controlreview, or peer review, of the independent registered
public accounting firm, or by any inquiry or investigation by governmental or professional
authorities, within the preceding fiveyears respecting one or more independent audits
carried out by the firm and any steps taken to deal with such issues; | |
| 
| meeting
to review and discuss our annual audited financial statements and quarterly financial statements
with management and the independent registered public accounting firm, including reviewing
our specific disclosures under Managements Discussion and Analysis of Financial
Condition and Results of Operations; reviewing and approving any related party transaction
required to be disclosed pursuant to Item404 of RegulationS-Kpromulgated
by the SEC prior to us entering into such transaction; | |
| 
| reviewing
with management, the independent registered public accounting firm, and our legal advisors,
as appropriate, any legal, regulatory or compliance matters, including any correspondence
with regulators or government agencies and any employee complaints or published reports that
raise material issues regarding our financial statements or accounting policies and any significant
changes in accounting standards or rules promulgated by the Financial Accounting Standards
Board, the SEC or other regulatory authorities; | |
| 
| advising
the Board and any other Board committees if the clawback provisions of the SEC Clawback Rule
are triggered based upon a financial statement restatement or other financial statement change,
with the assistance of Management and to the extent that our securities continue to be listed
on an exchange and subject to the SEC Clawback Rule; and | |
| 
| implementing
and overseeing our cybersecurity and information security policies, and periodically reviewing
the policies and managing potential cybersecurity incidents. | |
*Compensation
Committee*
**
Our
Board of Directors has established a compensation committee of our Board of Directors. The members of our compensation committee are
Ms. Khadjavi and Messrs. Matza and Finkelstein, and Mr.Finkelstein serves as chair of the compensation committee.
38
Under
the Nasdaq listing standards and applicable SEC rules, we are required to have a compensation committee of at least two members, all
of whom must be independent. Ms. Khadjavi and Messrs. Matza and Finkelstein are each independent. We have adopted a compensation committee
charter, which will detail the principal functions of the compensation committee, including:
| 
| reviewing
and approving on an annual basis the corporate goals and objectives relevant to our chief
executive officers compensation, evaluating our chief executive officers performance
in light of such goals and objectives and determining and approving the remuneration (if
any) of our chief executive officers based on such evaluation; | |
| 
| reviewing
and making recommendations to our Board of Directors with respect to the compensation, and
any incentive compensation and equity based plans that are subject to board approval of all
of our other officers; | |
| 
| reviewing
our executive compensation policies and plans; | |
| 
| implementing
and administering our incentive compensation equity-basedremuneration plans; | |
| 
| assisting
management in complying with our proxy statement and annual report disclosure requirements; | |
| 
| approving
all special perquisites, special cash payments and other special compensation and benefit
arrangements for our executive officers and employees; | |
| 
| producing
a report on executive compensation to be included in our annual proxy statement; and | |
| 
| reviewing,
evaluating and recommending changes, if appropriate, to the remuneration for directors. | |
**
| 
| advising
the Board and any other Board committees if the clawback provisions of the SEC Clawback Rule
are triggered based upon a financial statement restatement or other financial statement change
and perform any other tasks required of it by the Clawback Policy, with the assistance of
Management and to the extent that our securities continue to be listed on an exchange and
subject to the SEC Clawback Rule. | |
The
charter will also provide that the compensation committee may, in its sole discretion, retain or obtain the advice of a compensation
consultant, legal counsel or other adviser and will be directly responsible for the appointment, compensation and oversight of the work
of any such adviser. However, before engaging or receiving advice from a compensation consultant, external legal counsel or any other
adviser, the compensation committee will consider the independence of each such adviser, including the factors required by Nasdaq and
the SEC.
*Director
Nominations*
We
do not have a standing nominating committee though we intend to form a corporate governance and nominating committee as and when required
to do so by law or the Nasdaq Rules. In accordance with Rule5605(e)of the Nasdaq Rules, a majority of the independent directors
may recommend a director nominee for selection by our Board of Directors. Our Board of Directors believes that the independent directors
can satisfactorily carry out the responsibility of properly selecting or approving director nominees without the formation of a standing
nominating committee. The directors who participate in the consideration and recommendation of director nominees are Ms. Khadjavi and
Messrs. Matza and Finkelstein. In accordance with Rule5605(e)(1)(A)of the Nasdaq Rules, all such directors are independent.
As there is no standing nominating committee, we do not have a nominating committee charter in place.
The
Board of Directors will also consider director candidates recommended for nomination by our shareholders during such times as they are
seeking proposed nominees to stand for appointment at the next annual general meeting (or, if applicable, an extraordinary general meeting).
Our shareholders that wish to nominate a director for appointment to our Board of Directors should follow the procedures set forth in
our Amended and Restated Articles.
We
have not formally established any specific, minimum qualifications that must be met or skills that are necessary for directors to possess.
In general, in identifying and evaluating nominees for director, our Board of Directors considers educational background, diversity of
professional experience, knowledge of our business, integrity, professional reputation, independence, wisdom, and the ability to represent
the best interests of our shareholders. Prior to our initial Business Combination, holders of our Public Shares will not have the right
to recommend director candidates for nomination to our Board of Directors.
39
Code
of Ethics
We
have adopted the Code of Ethics. If we make any amendments to our Code of Ethics other than technical, administrative or other non-substantive
amendments, or grant any waiver, including any implicit waiver, from a provision of the Code of Ethics applicable to our principal executive
officer, principal financial officer, principal accounting officer or controller or persons performing similar functions requiring disclosure
under applicable SEC rules or the Nasdaq Rules, we will disclose the nature of such amendment or waiver on our website. The information
included on our website is not incorporated by reference into this Report or in any other report or document we file with the SEC, and
any references to our website are intended to be inactive textual references only.
The
foregoing description of the Code of Ethics does not purport to be complete and is qualified in its entirety by the terms and conditions
of the Code of Ethics, a copy of which is attached hereto as Exhibit 14.
Trading
Policies
On April 30, 2025, we adopted the Insider Trading Policy governing the purchase, sale, and/or other dispositions of our securities by directors, officers and employees, which are reasonably designed to promote compliance with insider trading laws, rules and regulations, and applicable Nasdaq Rules. 
The
foregoing description of the Insider Trading Policy does not purport to be complete and is qualified in its entirety by the terms and
conditions of the Insider Trading Policy, a copy of which is attached hereto as Exhibit 19.
Item 11. Executive Compensation.
None
of our executive officers or directors have received any cash compensation for services rendered to us. We are not prohibited from paying
any fees (including advisory fees), reimbursements or cash payments to our Sponsor, officers or directors, or our or their respective
affiliates, for services rendered to us prior to or in connection with the completion of our initial Business Combination, including
the following payments, all of which, if made prior to the completion of our initial Business Combination, will be paid from funds held
outside the Trust Account:
| 
| Repayment
of up to an aggregate of $300,000 in loans made to us by our Sponsor to cover offering-relatedand
organizational expenses; | |
| 
| Payment
of advisory, consulting, success or finder fees to our independent directors, advisors, or
their respective affiliates in connection with the consummation of our initial Business Combination; | |
| 
| We
may engage our Sponsor or an affiliate of our Sponsor as an advisor or otherwise in connection
with our initial Business Combination and certain other transactions and pay such person
or entity a salary or fee in an amount that constitutes a market standard for comparable
transactions; | |
| 
| Reimbursement
for any out-of-pocketexpenses related to identifying, investigating, negotiating and
completing an initial Business Combination; and | |
| 
| Repayment
of loans which may be made by our Sponsor or an affiliate of our Sponsor or certain of our
officers and directors to finance transaction costs in connection with an intended initial
Business Combination. Up to $1,500,000 of such loans may be convertible into private placement
warrants of the post-Business Combination entity at a price of $1.00 per warrant at the option
of the lender. Such warrants would be identical to the Private Placement Warrants. Except
for the foregoing, the terms of such loans, if any, have not been determined and no written
agreements exist with respect to such loans. | |
After
the completion of our initial Business Combination, directors or members of our Management Team who remain with us may be paid consulting
or management fees from the combined company. All of these fees will be fully disclosed to shareholders, to the extent then known, in
the proxy solicitation materials or tender offer materials furnished to our shareholders in connection with a proposed initial Business
Combination. We have not established any limit on the amount of such fees that may be paid by the combined company to our directors or
members of management. It is unlikely the amount of such compensation will be known at the time of the proposed initial Business Combination,
because the directors of the post-combinationbusiness will be responsible for determining executive officer and director compensation.
Any
compensation to be paid to our executive officers will be determined, or recommended to the Board of Directors for determination, either
by a compensation committee constituted solely by independent directors or by a majority of the independent directors on our Board of
Directors.
40
We
do not intend to take any action to ensure that members of our Management Team maintain their positions with us after the consummation
of our initial Business Combination, although it is possible that some or all of our officers and directors may negotiate employment
or consulting arrangements to remain with us after our initial Business Combination. The existence or terms of any such employment or
consulting arrangements to retain their positions with us may influence our managements motivation in identifying or selecting
a target business but we do not believe that the ability of our management to remain with us after the consummation of our initial Business
Combination will be a determining factor in our decision to proceed with any potential Business Combination. We are not party to any
agreements with our officers and directors that provide for benefits upon termination of employment.
*Compensation
Recovery and Clawback Policy*
On
April, 29, 2025, our Board of Directors approved the adoption of the Clawback Policy in order to comply with the SEC Clawback Rule, and
the Nasdaq Rules, as set forth in Nasdaq Listing Rule 5608. At no time during the fiscal year covered
by this Report were we required to prepare an accounting restatement that required recovery of an erroneously awarded compensation pursuant
to the Clawback Policy, a copy of which is attached hereto as Exhibit 97.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
The
following table sets forth information regarding the beneficial ownership of our Ordinary Shares as of March 26, 2026 based on
information obtained from the persons named below, with respect to the beneficial ownership of Ordinary Shares, by:
| 
| 
| 
each person
known by us to be the beneficial owner of more than 5% of our issued and outstanding Ordinary Shares; | |
| 
| 
| 
each of
our executive officers and directors that beneficially owns our Ordinary Shares; and | |
| 
| 
| 
all our
executive officers and directors as a group. | |
In
the table below, percentage ownership is based on 37,500,000 Ordinary Shares, consisting of (i) 30,000,000 Class A Ordinary Shares and
(ii) 7,500,000 Class B Ordinary Shares, issued and outstanding as of March 26, 2026. On all matters to be voted upon, except for
(x) the appointment and removal of directors to the Board and (y) continuing our Company in a jurisdiction
outside the Cayman Islands, holders of the Class A Ordinary Shares and Class B Ordinary Shares vote together as a single class,
unless otherwise required by applicable law. Currently, all of the Class B Ordinary Shares are convertible into Class A Ordinary Shares
on a one-for-one basis.
41
Unless
otherwise indicated, we believe that all persons named in the table have sole voting and investment power with respect to all Ordinary
Shares beneficially owned by them. The following table does not reflect record or beneficial ownership of the Private Placement Warrants
as these Private Placement Warrants are not exercisable within 60days of the date of this Report. 
| 
| | 
ClassA
Ordinary Shares | | | 
ClassB
Ordinary Shares | | | 
Approximate | | |
| 
Name and
Address of Beneficial Owner (1) | | 
Number
of Shares Beneficially Owned | | | 
Approximate
Percentage ofClass | | | 
Number
of Shares Beneficially Owned | | | 
Approximate
Percentage ofClass | | | 
Percentage
of Total Outstanding Ordinary Shares | | |
| 
Republic
Sponsor 1 LLC(2)(3) | | 
| | | | 
| | | | 
| 7,500,000 | | | 
| 100 | % | | 
| 20.0 | % | |
| 
Joseph
Naggar | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Jonathan
Knipper | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Robert
Urgo | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Darren
Sandler | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
James
Newman | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Armaan
Gori | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Andrew
Durgee | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Laya
Khadjavi | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Barry
Finkelstein | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Robert
Matza | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
All
officers and directors as a group (10 persons)(3) | | 
| | | | 
| | | | 
| 7,500,000 | | | 
| 100 | % | | 
| 20.0 | % | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Other
5% Shareholders | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Saba
Capital Management, L.P.(4) | | 
| 1,650,000 | | | 
| 5.5 | % | | 
| | | | 
| | | | 
| 4.4 | % | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Meteora
Capital, LLC | | 
| 2,970,000 | | | 
| 9.7 | % | | 
| | | | 
| | | | 
| 7.9 | % | |
| 
MMCAP
International Inc. SPC | | 
| 1,565,000 | | | 
| 5.2 | % | | 
| | | | 
| | | | 
| 4.2 | % | |
| 
Harraden
Circle Investments | | 
| 2,299,466 | | | 
| 7.7 | % | | 
| | | | 
| | | | 
| 6.1 | % | |
| 
(1) | Unless
otherwise noted, the principal business address of each of the following entities or individuals
is c/o 18 West 18th Street, New York, NY 10010. | |
| 
| | |
| 
(2) | Interests
shown consist solely of Founder Shares, classified as Class B Ordinary Shares. Such shares
will automatically convert into Class A Ordinary Shares concurrently with or immediately
following the consummation of our initial Business Combination or earlier at the option of
the holder on a one-for-one basis, subject to adjustment, as described in the section entitled
Description of Securities. | |
| 
| | |
| 
(3) | Republic
Sponsor 1 LLC, our Sponsor, is the record holder of such shares. Feynman Point Cayman LLC,
is the sole managing member of Republic Sponsor 1 LLC and holds voting and investment discretion
with respect to the Class B Ordinary Shares held of record by the Sponsor. Feynman Point
Cayman LLC disclaims any beneficial ownership of the securities held by the Sponsor other
than to the extent of any pecuniary interest it may have therein, directly or indirectly.
Additionally, all of our officers and directors and our advisor are members of our Sponsor.
Each director indirectly holds 25,000 Founder Shares through our Sponsor for their service
as a director. Each such person disclaims any beneficial ownership of the reported shares
other than to the extent of any pecuniary interest they may have therein, directly or indirectly. | |
| 
| | |
| 
(4) | The
reported position is according to a Schedule 13G/A filed with the SEC on January 12, 2026
by (i) Saba Capital Management, L.P. (Saba Capital), (ii) Boaz Weinstein, a
citizen of the United States, (Mr. Weinstein), and (iii) Saba Capital Management
GP, LLC (Saba GP and, together with Saba Capital and Mr. Weinstein, the Saba
Parties). The principal business address of each of the Saba Parties is 405 Lexington
Avenue, 58th Floor, New York, NY 10174. | |
| 
| | |
| 
(5) | The
reported position is according to a Schedule 13G/A filed with the SEC on February 13, 2026
by (i) Meteora Capital, LLC (Meteora Capital) and (ii) Vik Mittal (Mr.
Mittal and, together with Meteora Capital, the Meteora Parties). Meteora
Capital serves as investment manager to certain funds with managed accounts (the Meteora
Funds) that hold the Class A Ordinary Shares representing the Reported Position. Mr.
Mittal is the Managing Member of Meteora Capital, with respect to the Class A Ordinary Shares
held by the Meteora Funds. The principal business address of each of the Meteora Parties
is 1200 N Federal Hwy #200, Boca Raton, FL 33432. | |
| 
| | |
| 
(6) | The
reported position is according to a Schedule 13G/A filed with the SEC on February 13, 2026
by (i) MMCAP International Inc. SPC (MMCAP and (ii) MM Asset Management Inc.
(MM Asset). The principal business address of MMCAP is c/o Mourant Governance
Services (Cayman) Limited, 94 Solaris Avenue, Camana Bay, P.O. Box 1348, Grand Cayman KY1-1108,
Cayman Islands. The principal business address of MM Asset is 161 Bay Street, TD Canada Trust
Tower, Suite 2240, Toronto, Ontario M5J 2S1 Canada. | |
42
| 
(7) | The
reported position is according to according to a Schedule 13G/A filed with the SEC on February
13, 2026 by (i) Harraden Circle Investments, LLC (Harraden Adviser), (ii) Harraden
Circle Investors GP, LP (Harraden GP), (iii) Harraden Circle Investors GP,
LLC (Harraden LLC), (iv) Harraden Circle Investors, LP (Harraden Fund),
(v) Harraden Circle Special Opportunities, LP (Harraden Special Op Fund), (vi)
Harraden Circle Strategic Investments, LP (Harraden Strategic Fund), (vii)
Frederick V. Fortmiller, Jr. (Mr. Fortmiller), and (viii) Harraden Circle Concentrated,
LP (Concentrated Fund and, collectively with Harraden Adviser, Harraden GP,
Harraden LLC, Harraden Fund, Harraden Special Op Fund, Harraden Strategic Fund and Mr. Fortmiller,
the Harraden Parties). Harraden GP is the general partner to Harraden Fund,
Harraden Special Op Fund, Harraden Strategic Fund, and Concentrated Fund, and Harraden LLC
is the general partner of Harraden GP. Harraden Adviser serves as investment manager to Harraden
Fund, Harraden Special Op Fund, Harraden Strategic Fund, Concentrated Fund, and other high
net worth individuals. Mr. Fortmiller is the managing member of each of Harraden LLC and
Harraden Adviser. In such capacities, each of Harraden GP, Harraden LLC, Harraden Adviser
and Mr. Fortmiller may be deemed to indirectly beneficially own the Shares reported herein
directly beneficially owned by Harraden Fund, Harraden Special Op Fund, Harraden Strategic
Fund, and Concentrated Fund. The principal business address of each of the Harraden Parties
is 855 Third Avenue, Suite 2600B, New York, NY 10022. | |
Securities
Authorized for Issuance under Equity Compensation Plans
None.
Changes
in Control
None.
Item 13. Certain Relationships and Related Transactions, and Director Independence.
On
February14, 2025, the Sponsor made a capital contribution of $25,000, or approximately $0.004per share, to cover certain
of the Companys expenses, for which the Company issued6,325,000of Class B ordinary shares, par value $0.0001(the
Class B Ordinary Shares, and together with the Class A Ordinary Shares, the Ordinary Shares) to the Sponsor
(such shares, the Founder Shares). On April 30, 2025, the Company, through a share recapitalization, issued an additional1,265,000Class
B Ordinary Shares to the Sponsor, resulting in the Sponsor holding7,590,000Founder Shares, at approximately $0.003per
share. All share and per share data has been retroactively presented. The Founder Shares included an aggregate of up to900,000shares
that were subject to forfeiture depending on the extent that the Over-Allotment Option was not exercised, if at all. On May 1, 2025,
the Underwriters partially exercised their Over-Allotment Option and forfeited the unexercised balance. As a result of the partial exercise
and the forfeiture of the Over-Allotment Option by the Underwriters,900,000Founder Shares are no longer subject to forfeiture
and90,000Founder Shares were forfeited, resulting in the Sponsor holding7,500,000Founder Shares.
On
March 6, 2025, the Sponsor granted membership interests equivalent to an aggregate of125,000Founder Shares to the directors
of the Company in exchange for their services through the initial Business Combination. The Founder Shares, represented by such membership
interests, will remain with the Sponsor if the holder of such membership interests is no longer serving the Company prior to the initial
Business Combination. The membership interest assignment of the Founder Shares to the holders of such interests are in the scope of FASB
ASC Topic 718, Compensation-Stock Compensation (ASC 718). Under ASC 718, stock-based compensation associated
with equity-classified awards is measured at fair value upon the assignment date. The total fair value of the125,000Founder
Shares represented by such membership interests assigned to the holders of such interests on March 6, 2025 was $161,250or $1.29per
share. The Company established the initial fair value Founder Shares on March 6, 2025, the date of the grant agreement, using a calculation
prepared by a third-party valuation team, which takes into consideration the market adjustment of15.0%, a risk-free rate of4.14%,
volatility of2.0%, and implied share price of $9.90. The Founder Shares are classified as Level 3 at the measurement date due to
the use of unobservable inputs, and other risk factors. The membership interests were assigned subject to a performance condition (i.e.,
providing services through Business Combination). Stock-based compensation would be recognized at the date a Business Combination is
considered probable (i.e., upon consummation of a Business Combination) in an amount equal to the number of membership interests that
ultimately vest times the assignment date fair value per share (unless subsequently modified) less the amount initially received for
the assignment of the membership interests. As of December 31, 2025, the Company determined that the initial Business Combination is
not considered probable and therefore no compensation expense has been recognized.
Pursuant
to the Letter Agreement, the Sponsor and the Companys officers and directs agreed not to transfer, assign or sell any of their
Founder Shares and any ClassA Ordinary Shares issued upon conversion thereof until the earlier to occur of (i)one year after
the completion of the initial Business Combination or (ii)the date on which the Company completes a liquidation, merger, share
exchange or other similar transaction after the initial Business Combination that results in all of the Companys shareholders
having the right to exchange their ClassA Ordinary Shares for cash, securities or other property. Any permitted transferees will
be subject to the same restrictions and other agreements of the Letter Agreement signatories with respect to any Founder Shares (the
Lock-up). Notwithstanding the foregoing, if (1)the closing price of the ClassA Ordinary Shares equals or exceeds
$12.00per share (as adjusted for share subdivisions, share capitalizations, reorganizations, recapitalizations and the like) for
any20-trading days within any30-trading day period commencing at least 150 days after the initial Business Combination or
(2) if the Company consummates a transaction after the initial Business Combination which results in the Companys shareholders
having the right to exchange their shares for cash, securities or other property, the Founder Shares will be released from the Lock-up.
In
addition, in order to finance transaction costs in connection with an intended initial Business Combination, our Sponsor or an affiliate
of our Sponsor or certain of our officers and directors may, but are not obligated to, loan us funds as may be required on a non-interestbasis.
If we complete an initial Business Combination, we would repay such loaned amounts. In the event that the initial Business Combination
does not close, we may use amounts held outside the Trust Account to repay such loaned amounts but no proceeds from our Trust Account
would be used for such repayment. Up to $1,500,000 of such loans may be convertible into private placement warrants of the post Business
Combination entity at a price of $1.00 per warrant at the option of the lender. Such warrants would be identical to the Private Placement
Warrants. Except as set forth above, the terms of such loans, if any, have not been determined and no written agreements exist with respect
to such loans. Prior to the completion of our initial Business Combination, we do not expect to seek loans from parties other than our
Sponsor or an affiliate of our Sponsor as we do not believe third parties will be willing to loan such funds and provide a waiver against
any and all rights to seek access to funds in our Trust Account.
43
Any
of the foregoing payments to our Sponsor, repayments of loans from our Sponsor or repayments of Working Capital Loans prior to our initial
Business Combination will be made using funds held outside the Trust Account.
After
our initial Business Combination, members of our Management Team who remain with us may be paid consulting, management or other fees
from the combined company with any and all amounts being fully disclosed to our shareholders, to the extent then known, in the proxy
solicitation or tender offer materials, as applicable, furnished to our shareholders. It is unlikely the amount of such compensation
will be known at the time of distribution of such tender offer materials or at the time of a general meeting held to consider our initial
Business Combination, as applicable, as it will be up to the directors of the post-combinationbusiness to determine executive and
director compensation.
We
have entered into a registration rights agreement with respect to the Founder Shares and Private Placement Warrants, which is described
under the heading *Principal ShareholdersRegistration Rights*.
Director
Independence
Nasdaq
Rules require that a majority of our Board of Directors be independent within one year of our Initial Public Offering. An independent
director is defined generally as a person who, in the opinion of our Companys Board of Directors, has no material relationship
with the listed company (either directly or as a partner, shareholder or officer of an organization that has a relationship with our
Company). Our Board of Directors has determined that each of Andrew Durgee, Laya Khadjavi and Robert Matza are independent directors
as defined in the Nasdaq Rules and applicable SEC rules. Our independent directors have regularly scheduled meetings at which only independent
directors are present.
Item 14*.* Principal Accountant Fees and Services.
The
following is a summary of fees paid or to be paid to Withum for services rendered.
Audit
Fees
Audit
fees consist of the aggregate fees for professional services rendered for the (audit of our year-end financial statements and services
that are normally provided by Withum in connection with regulatory filings. The aggregate fees of Withum for professional services rendered
for the (i) audit of our annual financial statements and (ii) review of the financial information included in our Forms 10-Q for the
respective periods and other required filings with the SEC for the period from January 23, 2025 (inception) through December 31, 2025
totaled approximately $126,880. The above amounts include interim procedures and audit fees, as well as attendance at Audit Committee
meetings.
**
Audit-Related
Fees
Audit-related
fees consist of the aggregate fees billed for assurance and related services that are reasonably related to performance of the audit
or review of our financial statements and are not reported under Audit Fees. These services include attest services that
are not required by statute or regulation and consultations concerning financial accounting and reporting standards. We did not pay Withum
for any audit-related fees for the period from January 23, 2025 (inception) through December 31, 2025.
Tax
Fees
Tax
fees consist of the aggregate fees billed for professional services relating to tax compliance, tax planning and tax advice. We
did not pay Withum for tax services, planning or advice for the period from January 23, 2025 (inception) through December 31, 2025.
All
Other Fees 
All
other fees consist of the aggregate fees billed for all other services. We
did not pay Withum for any other services for the period from January 23, 2025 (inception) through December 31, 2025.
Pre-Approval
Policy
Our
Audit Committee was formed upon the consummation of our Initial Public Offering. As a result, the Audit Committee did not pre-approve
all of the foregoing services, although any services rendered prior to the formation of our Audit Committee were approved by our Board
of Directors. Since the formation of our Audit Committee, and on a going-forward basis, the Audit Committee has and will pre-approve
all auditing services and permitted non-audit services performed and to be performed for us by our auditors, including the fees and terms
thereof (subject to the de minimis exceptions for non-audit services described in the Exchange Act which are approved by the Audit Committee
prior to the completion of the audit).
44
PART IV
Item 15. Exhibit and Financial Statement Schedules.
| 
(a) | 
The following documents are filed as part of this Report: | |
| 
(1) | Financial Statements | 
|
| 
| 
Page | 
|
| 
| 
| 
|
| 
Report
of Independent Registered Public Accounting Firm (PCAOB ID Number 100) | 
F-1 | 
|
| 
| 
| 
|
| 
Financial
Statements: | 
| 
|
| 
| 
| 
|
| 
Balance
Sheet as of December 31, 2025 | 
F-2 | 
|
| 
| 
| 
|
| 
Statement
of Operations for the period from January 23, 2025 (Inception) though December 31, 2025 | 
F-3 | 
|
| 
| 
| 
|
| 
Statement
of changes in Shareholders Deficit for the Period from January 23, 2025 (Inception) through December 31, 2025 | 
F-4 | 
|
| 
| 
| 
|
| 
Statement
of Cash Flows for the Period from January 23, 2025 (Inception) through December 31, 2025 | 
F-5 | 
|
| 
| 
| 
|
| 
Notes
to Financial Statements | 
F-6
to F-19 | 
|
| 
(2) | 
Financial Statement Schedules | |
All financial statement schedules
are omitted because they are not applicable or the amounts are immaterial and not required, or the required information is presented in
the financial statements and notes thereto beginning on page F-1 of this Report.
| 
(3) | 
Exhibits | |
We hereby file as part of
this Report the exhibits listed in the attached Exhibit Index. Exhibits that are incorporated herein by reference can be inspected on
the SEC website at www.sec.gov.
Item 16. Form 10-K Summary.
Omitted at our Companys
option.
44
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Directors of
Republic Digital Acquisition Company:
Opinion on the Financial Statements
We have audited the accompanying balance sheet of Republic Digital Acquisition Company (the Company) as of December 31, 2025, and the related statements of operations, changes in shareholders deficit and cash flows for the period from January 23, 2025 (inception) through December 31, 2025, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and the results of its operations and its cash flows for the period from January 23, 2025 (inception) through December 31, 2025, in conformity with the Generally Accepted Accounting Principles.
Basis for Opinion 
These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on the Companys financial statements 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 statements are 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 Companys 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 statements, 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 statements. 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 statements. We believe that our audit provides a reasonable basis for our opinion.
/s/ WithumSmith+Brown, PC 
We have served as Republic Digital Acquisition Companys auditor since 2025.
New York, New York 
March 26, 2026
PCAOB ID Number 100 
F-1
REPUBLIC DIGITAL ACQUISITION COMPANY
BALANCE SHEET
DECEMBER31, 2025
| 
Assets: | | 
| | |
| 
Current assets | | 
| | | |
| Cash | | $ | 1,016,713 | | |
| Prepaid expenses | | | 98,656 | | |
| Total current assets | | | 1,115,369 | | |
| Long-term prepaid insurance | | | 25,369 | | |
| Investments held in Trust Account | | | 308,053,817 | | |
| Total Assets | | $ | 309,194,555 | | |
| 
| | 
| | | |
| 
Liabilities, Class A Ordinary Shares Subject to Possible Redemption, and Shareholders Deficit | | 
| | | |
| 
Current liabilities | | 
| | | |
| Accrued offering costs | | $ | 75,000 | | |
| Accounts payable and accrued expenses | | | 5,343 | | |
| Total current liabilities | | | 80,343 | | |
| Deferred Fee payable | | | 12,720,000 | | |
| Total Liabilities | | | 12,800,343 | | |
| 
| | 
| | | |
| Commitments and Contingencies (Note 6) | | | | | |
| Class A Ordinary Shares subject to possible redemption, 30,000,000 shares at redemption value of $10.27 per share | | | 308,053,817 | | |
| 
| | 
| | | |
| 
Shareholders Deficit | | 
| | | |
| Preference shares, $0.0001 par value; 5,000,000 shares authorized; none issued or outstanding | | | | | |
| Class A Ordinary Shares, $0.0001 par value; 500,000,000 shares authorized; no shares issued or outstanding (excluding 30,000,000 shares subject to possible redemption) | | | | | |
| Class B Ordinary Shares, $0.0001 par value; 50,000,000 shares authorized; 7,500,000 shares issued and outstanding | | | 750 | | |
| Additional paid-in capital | | | | | |
| Accumulated deficit | | | (11,660,355 | ) | |
| Total Shareholders Deficit | | | (11,659,605 | ) | |
| Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption, and Shareholders Deficit | | $ | 309,194,555 | | |
The accompanying notes are an integral part of
these financial statements.
F-2
REPUBLIC DIGITAL ACQUISITION COMPANY
STATEMENT OF OPERATIONS
FOR THE PERIOD FROM JANUARY 23, 2025 (INCEPTION)
THROUGH DECEMBER 31, 2025
| General and administrative costs | | $ | 359,106 | | |
| Loss from operations | | | (359,106 | ) | |
| 
| | 
| | | |
| 
Other income: | | 
| | | |
| Earnings from investments held in Trust Account | | | 8,053,817 | | |
| Interest income - operating account | | | 24,001 | | |
| Other income | | | 8,077,818 | | |
| Net income | | $ | 7,718,712 | | |
| 
| | 
| | | |
| Weighted average Class A Ordinary Shares outstanding basic and diluted | | | 21,341,108 | | |
| Basic and diluted net income per Class A Ordinary Shares | | $ | 0.27 | | |
| Weighted average Class B Ordinary Shares outstanding - basic | | | 7,240,233 | | |
| Basic net income per Class B Ordinary Shares | | $ | 0.27 | | |
| Weighted average Class B Ordinary Shares outstanding - diluted | | | 7,500,000 | | |
| Diluted net income per Class B Ordinary Shares | | $ | 0.27 | | |
The accompanying notes are an integral part of
these financial statements.
F-3
REPUBLIC DIGITAL ACQUISITION COMPANY
STATEMENT OF CHANGES IN SHAREHOLDERS
DEFICIT
FOR THE PERIOD FROM JANUARY 23, 2025 (INCEPTION)
THROUGH DECEMBER 31, 2025
| 
| | 
Class A Ordinary Shares | | | 
Class B Ordinary Shares | | | 
Additional Paid-in | | | 
Accumulated | | | 
Total Shareholders | | |
| 
| | 
Shares | | | 
Amount | | | 
Shares | | | 
Amount | | | 
Capital | | | 
Deficit | | | 
Deficit | | |
| Balance January 23, 2025 (Inception) | | | | | | $ | | | | | | | | $ | | | | $ | | | | $ | | | | | | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| Class B Ordinary Shares issued to Sponsor | | | | | | | | | | | 7,590,000 | | | | 759 | | | | 24,241 | | | | | | | | 25,000 | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| Accretion for Class A Ordinary Shares to redemption amount | | | | | | | | | | | | | | | | | | | (9,821,805 | ) | | | (19,379,067 | ) | | | (29,200,872 | ) | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| Sale of Private Placement Warrants | | | | | | | | | | | | | | | | | | | 7,280,000 | | | | | | | | 7,280,000 | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| Fair Value of Public Warrants at issuance | | | | | | | | | | | | | | | | | | | 2,700,000 | | | | | | | | 2,700,000 | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| Allocated value of transaction costs to Class A Ordinary Shares | | | | | | | | | | | | | | | | | | | (182,445 | ) | | | | | | | (182,445 | ) | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| Forfeiture of Founder Shares | | | | | | | | | | | (90,000 | ) | | | (9 | ) | | | 9 | | | | | | | | | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| Net income | | | | | | | | | | | | | | | | | | | | | | | 7,718,712 | | | | 7,718,712 | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| Balance December 31, 2025 | | | | | | $ | | | | | 7,500,000 | | | $ | 750 | | | $ | | | | $ | (11,660,355 | ) | | $ | (11,659,605 | ) | |
The accompanying notes are an integral part of
these financial statements.
F-4
REPUBLIC DIGITAL ACQUISITION COMPANY
STATEMENT OF CASH FLOWS
FOR THE PERIOD FROM JANUARY 23, 2025 (INCEPTION)
THROUGH DECEMBER 31, 2025
| 
Cash Flows from Operating Activities: | | 
| | |
| Net income | | $ | 7,718,712 | | |
| 
Adjustments to reconcile net income to net cash used in operating activities: | | 
| | | |
| Payment of general and administrative costs through IPO Promissory Note related party | | | 65,934 | | |
| Earning from investments held in Trust Account | | | (8,053,817 | ) | |
| 
Changes in operating assets and liabilities: | | 
| | | |
| Prepaid expenses | | | (124,025 | ) | |
| Accounts payable and accrued expenses | | | 5,343 | | |
| Net cash used in operating activities | | | (387,853 | ) | |
| 
| | 
| | | |
| 
Cash Flows from Investing Activities: | | 
| | | |
| Investment of cash in Trust Account | | | (300,000,000 | ) | |
| Net cash used in investing activities | | | (300,000,000 | ) | |
| 
| | 
| | | |
| 
Cash Flows from Financing Activities: | | 
| | | |
| Proceeds from sale of Units, net of underwriting discounts paid | | | 294,720,000 | | |
| Proceeds from sale of Private Placements Warrants | | | 7,280,000 | | |
| Repayment of IPO Promissory Noterelated party | | | (294,255 | ) | |
| Payment of offering costs | | | (301,179 | ) | |
| Net cash provided by financing activities | | | 301,404,566 | | |
| 
| | 
| | | |
| Net Change in Cash | | | 1,016,713 | | |
| Cash Beginning of period | | | | | |
| Cash End of period | | $ | 1,016,713 | | |
| 
| | 
| | | |
| 
Non-Cash investing and financing activities: | | 
| | | |
| Deferred offering costs included in accrued offering costs | | $ | 75,000 | | |
| Deferred offering costs paid through IPO Promissory Note - related party | | $ | 228,321 | | |
| Deferred offering costs paid by Sponsor in exchange for issuance of Class B Ordinary Shares | | $ | 25,000 | | |
| Deferred underwriting fee payable | | $ | 12,720,000 | | |
| Deferred offering costs charged to additional paid-in capital | | $ | 629,500 | | |
| Forfeiture of Founder Shares | | $ | 9 | | |
The accompanying notes are an integral part of
these financial statements.
F-5
REPUBLIC DIGITAL ACQUISITION COMPANY
NOTES TO THE FINANCIAL STATEMENTS
Note1 Organization and Business Operations
Republic Digital Acquisition Company (the Company) is a blank check company incorporated as a Cayman Islands exempted corporation on January23, 2025. The Company was incorporated for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities (the Business Combination). The Company has not selected any specific Business Combination target.
As of December 31, 2025, the Company had not commenced any operations. All activity for the period from January23, 2025 (inception) through December 31, 2025 relates to the Companys formation, the Initial Public Offering (as defined below) consummated on May 1, 2025 and subsequent to the Initial Public Offering, identifying a target company for a Business Combination. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company generates non-operating income in the form of interest or dividends income on investments from the proceeds derived from the Initial Public Offering. The Company has selected December31 as its fiscal year end. 
The Registration Statement on Form S-1 for the Initial Public Offering, initially filed with the U.S. Securities and Exchange Commission (the SEC) on February 28, 2025, as amended (File No. 333-285386), was declared effective on April 30, 2025 (the IPO Registration Statement). On May 1, 2025, the Company consummated the initial public offering of 30,000,000 units (the Units) at $10.00 per Unit, which includes the partial exercise of the Over-Allotment Option (as defined in Note 6) in the amount of 3,600,000 units (the Option Units), generating gross proceeds of $300,000,000 (the Initial Public Offering), as discussed in Note 3. Each Unit consists of one Class A ordinary share, par value $0.0001 per share, of the Company (the Class A Ordinary Shares and with respect to the Class A Ordinary Shares included in the Units, the Public Shares)and one-half of one redeemable warrant (each, a Public Warrant). 
Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of an aggregate of 7,280,000 warrants (the Private Placement Warrants and together with the Public Warrants, the Warrants) to (i) the Companys Sponsor, Republic Sponsor 1 LLC (the Sponsor), and (ii) Cantor Fitzgerald & Co. (Cantor), the representative of the Underwriters of the Initial Public Offering, at a price of $1.00 per Private Placement Warrant, generating gross proceeds of $7,280,000 (the Private Placement), as discussed in Note 4. Each whole Warrant entitles the holder to purchase one Class A Ordinary Share at a price of $11.50 per share, subject to adjustment. Of those 7,280,000 Private Placement Warrants, the Sponsor purchased 4,640,000 Private Placement Warrants and Cantor purchased 2,640,000 Private Placement Warrants. 
Transaction costs amounted to $18,629,500, consisting of $5,280,000 of cash underwriting fees, the Deferred Fee (as defined in Note 6) of $12,720,000, and $629,500 of other offering costs. 
The Companys executive officers and directors (Management or Management Team) have broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and the Private Placement, although substantially all of the net proceeds are intended to be generally applied toward consummating a Business Combination (less the Deferred Fee and taxes payable, if any, on the income earned from the Trust Account (as defined below).
The Business Combination must be with one or more target businesses that together have a fair market value equal to at least 80% of the net balance in the Trust Account (excluding the amount of the Deferred Fee held and taxes payable, if any, on the income earned from the Trust Account) at the time of the signing an agreement to enter into a Business Combination. However, the Company will only complete a Business Combination if the post-Business Combination 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 Actof1940, as amended (the Investment Company Act). There is no assurance that the Company will be able to successfully effect a Business Combination. 
F-6
Following the closing of the Initial Public Offering, on May 1, 2025, an amount of $300,000,000 ($10.00 per Unit) from the net proceeds of the sale of the Units and the Private Placement Warrants, was placed in the Trust Account (the Trust Account), with Continental Stock Transfer & Trust Company (Continental), acting as trustee and are initially invested in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act that invest only in direct U.S. government treasury obligations; the holding of these assets in this form is intended to be temporary and for the sole purpose of facilitating the intended Business Combination. To mitigate the risk that the Company might be deemed to be an investment company for purposes of the Investment Company Act, which risk increases the longer that the Company holds investments in the Trust Account, the Company may, at any time (based on the Management Teams ongoing assessment of all factors related to the Companys potential status under the Investment Company Act), instruct Continental to liquidate the investments held in the Trust Account and instead to hold the funds in the Trust Account in cash or in an interest bearing demand deposit account at a bank. Except with respect to interest earned on the funds held in the Trust Account that may be released to the Company to pay its taxes, if any, the proceeds from the Initial Public Offering and the sale of the Private Placement will not be released from the Trust Account until the earliest of (i)the completion of the Business Combination, (ii)the redemption of the Public Shares if the Company is unable to complete the initial Business Combination by May 1, 2027 (24months from the closing of the Initial Public Offering) or by such earlier liquidation date as the Companys Board of Directors may approve (the Combination Period), subject to applicable law, or (iii)the redemption of the Public Shares properly submitted in connection with a shareholder vote to amend the Companys amended and restated memorandum and articles of association (the Amended and Restated Articles) to (A)modify the substance or timing of the Companys obligation to allow redemption in connection with the initial Business Combination or to redeem 100% of the Companys Public Shares if the Company has not consummated an initial Business Combination within the Combination Period or (B)with respect to any other material provisions relating to shareholders rights or pre-initial Business Combination activity. The proceeds deposited in the Trust Account could become subject to the claims of the Companys creditors, if any, which could have priority over the claims of the Companys holders of Public Shares (the Public Shareholders). 
The Company will provide the Public Shareholders with the opportunity to redeem all or a portion of their Public Shares upon the completion of the initial Business Combination either (i)in connection with a general meeting called to approve the initial Business Combination or (ii)without a shareholder vote by means of a tender offer. The decision as to whether the Company will seek shareholder approval of a proposed initial 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 at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account calculated as of twobusiness days prior to the consummation of the initial Business Combination, including interest earned on the funds held in the Trust Account (less taxes payable), divided by the number of then outstanding Public Shares, subject to the limitations. As of December 31, 2025, the amount in the Trust Account was $10.27 per Public Share. 
The Ordinary Shares (as defined in Note 5) subject to redemption were recorded at a redemption value and classified as temporary equity upon the completion of the Initial Public Offering, in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic480, Distinguishing Liabilities from Equity.
The Company has the duration of the Combination Period to complete the initial Business Combination. However, if the Company is unable to complete its initial Business Combination within the Combination Period, the Company will as promptly as reasonably possible, but not more than tenbusiness 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 earnings from the funds held in the Trust Account (less taxes payable, if any, and up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will constitute full and complete payment for the Public Shares and completely extinguish Public Shareholders rights as shareholders (including the right to receive further liquidation or other distributions, if any), subject to the Companys obligations under Cayman Islands law to provide for claims of creditors and subject to the other requirements of applicable law. 
The Sponsor, officers, and directors have entered into a letter agreement with the Company, dated April 30, 2025 (the Letter Agreement), pursuant to which they have agreed to (i)waive their redemption rights with respect to their Founder Shares (as defined in Note 5) and Public Shares in connection with the completion of the initial Business Combination; (ii)waive their redemption rights with respect to their Founder Shares and Public Shares in connection with a shareholder vote to approve an amendment to the Amended and Restated Articles to modify (x) the substance or timing of our obligation to allow redemption in connection with our initial Business Combination or to redeem 100% of our Public Shares if we do not complete our initial Business Combination within the Combination Period or (y) any other material provisions relating to shareholders rights or pre-initial Business Combination activity; (iii)waive their rights to liquidating distributions from the Trust Account with respect to their Founder Shares if the Company fails to complete the initial Business Combination within the Combination Period, although they will be entitled to liquidating distributions from the Trust Account with respect to any Public Shares they hold if the Company fails to complete the initial Business Combination within the Combination Period and to liquidating distributions from assets outside the Trust Account; and (iv)vote any Founder Shares held by them and any Public Shares purchased during or after the Initial Public Offering (including in open market and privately negotiated transactions, aside from shares they may purchase in compliance with the requirements of Rule14e-5 under the Securities Exchange Act of 1934, as amended (the ExchangeAct), which would not be voted in favor of approving the Business Combination) in favor of the initial Business Combination. 
F-7
The Sponsor has agreed that it will be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has entered into a written letter of intent, confidentiality or other similar agreement or Business Combination agreement, reduce the amount of funds in the Trust Account to below the lesser of (i)$10.00 per Public Share and (ii)the actual amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.00 per Public Share due to reductions in the value of the Trust Account assets, less taxes payable, provided that such liability will not apply to any claims by a third party or prospective target business who executed a waiver of any and all rights to the monies held in the Trust Account (whether or not such waiver is enforceable) nor will it apply to any claims under the Companys indemnity of the Underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Actof1933, as amended (the Securities Act). However, the Company has not asked the Sponsor to reserve for such indemnification obligations, nor has the Company independently verified whether the Sponsor has sufficient funds to satisfy its indemnity obligations and the Company believes that the Sponsors only assets are securities of the Company. Therefore, the Company cannot assure that the Sponsor will be able to satisfy those obligations. 
NOTE 2SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
**
*Basis of Presentation*
The accompanying financial statements are presented in U.S. dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and pursuant to the accounting and disclosure rules and regulations of the Securities and Exchange Commission (the SEC).
*Liquidity, Capital Resources, and Going Concern*
The Companys liquidity needs up to December 31, 2025 were satisfied through the loan from the Sponsor of up to $300,000 pursuant to the IPO Promissory Note (as defined in Note 5). As of December 31, 2025, the Company had $1,016,713 of cash and a working capital surplus of $1,035,026. The Company uses the funds held outside the Trust Account primarily to identify and evaluate target businesses, perform business due diligence on prospective target businesses, travel to and from the offices, plants, or similar locations of prospective target businesses or their representatives or owners, review corporate documents and material agreements of prospective target businesses, and structure, negotiate, and complete a Business Combination. 
On May 1, 2025, the Company consummated the Initial Public Offering of 30,000,000 Units, which includes the partial exercise by the Underwriters of their Over-Allotment Option in the amount of 3,600,000 Option Units, at $10.00 per Unit, generating gross proceeds of $300,000,000. Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of an aggregate of 7,280,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant, in the Private Placement to the Sponsor and Cantor, generating gross proceeds of $7,280,000. Of those 7,280,000 Private Placement Warrants, the Sponsor purchased 4,640,000 Private Placement Warrants and Cantor purchased 2,640,000 Private Placement Warrants. 
In order to fund working capital deficiencies or finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor, or certain of the Companys officers and directors may, but are not obligated to, provide the Company with working capital loans (the Working Capital Lons). If the Company completes a Business Combination, the Company would repay such loaned amounts at that time. Up to $1,500,000 of such Working Capital Loans may be converted into warrants of the post-Business Combination entity at a price of $1.00 per warrant. The warrants would be identical to the Private Placement Warrants. As of December 31, 2025, the Company had no borrowings under the Working Capital Loans. 
In connection with the Companys assessment of going concern considerations in accordance with FASB ASC Topic 205-40, Presentation of Financial Statements - Going Concern, the Company does not believe it will need to raise additional funds in order to meet the expenditures required for operating its business. However, if the estimate of the costs of identifying a target business, undertaking in-depth due diligence and negotiating a Business Combination are less than the actual amount necessary to do so, the Company may have insufficient funds available to operate its business prior to the initial Business Combination. Management has determined that as of December 31, 2025, the Company has sufficient funds to finance the working capital needs of the Company within one year from the date of issuance of the accompanying financial statements.
F-8
*Emerging Growth Company Status*
The Company is an emerging growth company, as defined in Section2(a)of the Securities Act, as modified by the Jumpstart Our Business Startups Actof2012 (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 Section404 of the Sarbanes-Oxley Act of 2002, 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, Section102(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 ExchangeAct) 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 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 accompanying financial statements with another public company that is neither an (i) emerging growth company nor (ii) emerging growth company that has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.
*Use of Estimates*
The preparation of the accompanying financial statements in conformity with GAAP requires the Management Team to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the accompanying financial statements. Actual results could differ from those estimates.
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 accompanying 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 $1,016,713 in cash and no cash equivalents as of December 31, 2025. 
*Investments Held in Trust Account*
At December 31, 2025, substantially all of the assets held in the Trust Account were held in mutual funds that are invested in money market funds. All of the Companys investments held in the Trust Account are classified as trading securities. Trading securities are presented on the Companys balance sheet at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of investments held in the Trust Account are included in earning from investments held in Trust Account in the Companys statement of operations.
*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 Deposit Insurance Corporation coverage limit of $250,000. Any loss incurred or a lack of access to such funds could have a significant adverse impact on the Companys financial condition, results of operations, and cash flows. As of December 31, 2025, the Company has not experienced losses on these accounts and Management believes the Company is not exposed to significant risks on such accounts. 
F-9
*Offering Costs*
The Company complies with the requirements of the FASB ASC Topic 340-10-S99, Other Assets and Deferred Costs and SEC Staff Accounting Bulletin Topic 5A, Expenses of Offering. Offering costs consist principally of professional and registration fees that are related to the Initial Public Offering. FASB ASC Topic 470-20, Debt with Conversion and Other Options, addresses the allocation of proceeds from the issuance of convertible debt into its equity and debt components. The Company applied this guidance to allocate Initial Public Offering proceeds from the Units between Public Shares and Public Warrants, using the residual method by allocating Initial Public Offering proceeds first to assigned value of the Public Warrants and then to the Public Shares. Offering costs allocated to Public Shares were charged to temporary equity. Offering costs allocated to the Warrants were charged to shareholders deficit as the Public Warrants and Private Placement Warrants, after Managements evaluation, were accounted for under equity treatment.
**
*Fair Value of Financial Instruments*
The fair value of the Companys assets and liabilities, which qualify as financial instruments under FASB ASCTopic 820, Fair Value Measurements and Disclosures, approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.
**
*Income Taxes*
The Company accounts for income taxes under FASB ASC Topic740, Income Taxes (ASC 740), which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statements and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.
ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions 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. The Management determined that the Cayman Islands is the Companys major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of December 31, 2025, there were no unrecognized tax benefits and no amounts accrued for interest and penalties. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. 
The Company is considered to be an exempted Cayman Islands company with no connection to any other taxable jurisdiction and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the UnitedStates. As such, the Companys tax provision was zero for the period presented.
*Warrant Instruments*
The Company accounted for the Warrants in accordance with the guidance contained in FASB ASC Topic815, Derivatives and Hedging. Accordingly, the Company evaluated and classified the warrant instruments under equity treatment at their assigned values.
F-10
*Class A Ordinary Shares Subject to Possible Redemption*
The Public Shares contain a redemption feature that allows for the redemption of such Public Shares in connection with the Companys liquidation, or if there is a shareholder vote or tender offer in connection with the initial Business Combination. In accordance with FASB ASC Topic 480-10-S99, Distinguishing Liabilities from Equity, the Company classifies Public Shares subject to possible redemption outside of permanent equity as the redemption provisions are not solely within the control of the Company. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable shares to equal the redemption value at the end of each reporting period. Immediately upon the closing of the Initial Public Offering, the Company recognized the accretion from initial book value to redemption value. The change in the carrying value of redeemable shares will result in charges against additional paid-in capital (to the extent available) and accumulated deficit. Accordingly, as of December 31, 2025, Class A Ordinary Shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders deficit section of the accompanying balance sheet. As of December 31, 2025, the Class A Ordinary Shares subject to possible redemption reflected in the accompanying balance sheet are reconciled in the following table: 
| | | | Shares | | | | Amount | | |
| Gross proceeds | | | 30,000,000 | | | $ | 300,000,000 | | |
| Less: | | | | | | | | | |
| Proceeds allocated to Public Warrants | | | | | | | (2,700,000 | ) | |
| ClassA Ordinary Shares issuance costs | | | | | | | (18,447,055 | ) | |
| Plus: | | | | | | | | | |
| Remeasurement of carrying value to redemption value | | | | | | | 29,200,872 | | |
| ClassA Ordinary Shares subject to possible redemption, December 31, 2025 | | | 30,000,000 | | | $ | 308,053,817 | | |
*Net Income Per Ordinary Share*
The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, Earnings Per Share. Income and losses are shared pro rata between the two classes of Ordinary Shares. Net income per Ordinary Share is calculated by dividing the net income by the weighted average number of Ordinary Shares outstanding for the period. Accretion associated with the redeemable Ordinary Shares is excluded from income per Ordinary Share as the redemption value approximates fair value. 
The calculation of diluted net income per Ordinary Share does not consider the effect of the Warrants issued in connection with the (i) Initial Public Offering, (ii) the exercise of the Over-Allotment Option and (iii) Private Placement, since the average price of the Ordinary Shares for the period from January 23, 2025 (inception) through December 31, 2025, was less than the exercise price and therefore, the inclusion of such Warrants under the Treasury stock method would be anti-dilutive and the exercise is contingent upon the occurrence of future events. The Warrants are exercisable to purchase 7,280,000 Class A Ordinary Shares in the aggregate. As a result, diluted net income per Ordinary Share is the same as basic net income per Ordinary Share for the periods presented. 
F-11
The following table presents a reconciliation of the numerator and denominator used to compute basic and diluted net income per Ordinary Share for each class of Ordinary Shares:
| | | For the period from January 23, 2025 (Inception) through December 31, 2025 | | |
| | | ClassA | | | ClassB | | |
| Basic net income per Ordinary Share | | | | | | | |
| Numerator: | | | | | | | | | |
| Allocation of net income | | $ | 5,763,406 | | | $ | 1,955,306 | | |
| | | | | | | | | | |
| Denominator: | | | | | | | | | |
| Basic weighted average Ordinary Shares outstanding | | | 21,341,108 | | | | 7,240,233 | | |
| Basic net income per Ordinary Share | | $ | 0.27 | | | $ | 0.27 | | |
| | | For the period from January 23, 2025 (Inception) through December 31, 2025 | | |
| | | ClassA | | | ClassB | | |
| Diluted net income per Ordinary Share | | | | | | | |
| Numerator: | | | | | | | | | |
| Allocation of net income | | $ | 5,711,496 | | | $ | 2,007,216 | | |
| | | | | | | | | | |
| Denominator: | | | | | | | | | |
| Basic weighted average Ordinary Shares outstanding | | | 21,341,108 | | | | 7,500,000 | | |
| Diluted net income per Ordinary Share | | $ | 0.27 | | | $ | 0.27 | | |
*Recent Accounting Standards*
In November 2024, the FASB issued Accounting Standards Update (ASU) Topic 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03), requiring public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2024-03.
Management does not believe that any other recently issued, but not effective, accounting standards, if currently adopted, would have a material effect on the accompanying financial statements.
Note3 Initial Public Offering
Pursuant to the Initial Public Offering on May 1, 2025, the Company sold 30,000,000 Units, which included the partial exercise by the Underwriters of their Over-Allotment Option in the amount of 3,600,000 Option Units, at a price of $10.00 per Unit. Each Unit consists of one Public Share and one-half of one redeemable Public Warrant. Each whole Public Warrant entitles the holder to purchase one ClassA Ordinary Share at a price of $11.50 per share, subject to adjustment. Each Public Warrant will become exercisable 30days after the completion of the initial Business Combination and will expire fiveyears after the completion of the initial Business Combination, or earlier upon redemption or liquidation. 
F-12
Note4 Private Placement
Simultaneously with the closing of the Initial Public Offering, the Sponsor and Cantor purchased an aggregate of 7,280,000 Private Placement Warrants, at a price of $1.00 per Private Placement Warrant, or $7,280,000 in the aggregate, in the Private Placement. Of those 7,280,000 Private Placement Warrants, the Sponsor purchased 4,640,000 Private Placement Warrants and Cantor purchased 2,640,000 Private Placement Warrants. Each whole Private Placement Warrant entitles the registered holder to purchase one ClassA Ordinary Share at a price of $11.50 per share, subject to adjustment. 
The Private Placement Warrants are identical to the Public Warrants sold in the Initial Public Offering except that, so long as they are held by the Sponsor, Cantor, or their permitted transferees, the Private Placement Warrants (i)may not (including the ClassA Ordinary Shares issuable upon exercise of these Private Placement Warrants), subject to certain limited exceptions, be transferred, assigned or sold by the holders until 30days after the completion of the initial Business Combination, (ii)are entitled to registration rights and (iii)with respect to Private Placement Warrants held by Cantor, are not be exercisable more than fiveyears from the commencement of sales in the Initial Public Offering in accordance with Financial Industry Regulatory Authority Rule5110(g)(8).
The Sponsor, officers, and directors have entered into the Letter Agreement, pursuant to which they have agreed to (i)waive their redemption rights with respect to their Founder Shares (as defined in Note 5) and Public Shares in connection with the completion of the initial Business Combination; (ii)waive their redemption rights with respect to their Founder Shares and Public Shares in connection with a shareholder vote to approve an amendment to the Amended and Restated Articles to modify (x) the substance or timing of our obligation to allow redemption in connection with our initial Business Combination or to redeem 100% of our Public Shares if we do not complete our initial Business Combination within the Combination Period or (y) any other material provisions relating to shareholders rights or pre-initial Business Combination activity; (iii)waive their rights to liquidating distributions from the Trust Account with respect to their Founder Shares if the Company fails to complete the initial Business Combination within the Combination Period, although they will be entitled to liquidating distributions from the Trust Account with respect to any Public Shares they hold if the Company fails to complete the initial Business Combination within the Combination Period and to liquidating distributions from assets outside the Trust Account; and (iv)vote any Founder Shares held by them and any Public Shares purchased during or after the Initial Public Offering (including in open market and privately negotiated transactions, aside from shares they may purchase in compliance with the requirements of Rule14e-5 under the ExchangeAct, which would not be voted in favor of approving the Business Combination) in favor of the initial Business Combination. 
Note5 Related Party Transactions
*Founder Shares*
**
On February14, 2025, the Sponsor made a capital contribution of $25,000, or approximately $0.004 per share, to cover certain of the Companys expenses, for which the Company issued 6,325,000 of Class B ordinary shares, par value $0.0001 (the Class B Ordinary Shares, and together with the Class A Ordinary Shares, the Ordinary Shares) to the Sponsor (such shares, the Founder Shares). On April 30, 2025, the Company, through a share recapitalization, issued an additional 1,265,000 Class B Ordinary Shares to the Sponsor, resulting in the Sponsor holding 7,590,000 Founder Shares, at approximately $0.003 per share. All share and per share data has been retroactively presented. The Founder Shares included an aggregate of up to 900,000shares that were subject to forfeiture depending on the extent that the Over-Allotment Option was not exercised, if at all. On May 1, 2025, the Underwriters partially exercised their Over-Allotment Option and forfeited the unexercised balance. As a result of the partial exercise and the forfeiture of the Over-Allotment Option by the Underwriters, 900,000 Founder Shares are no longer subject to forfeiture and 90,000 Founder Shares were forfeited, resulting in the Sponsor holding 7,500,000 Founder Shares. 
F-13
On March 6, 2025, the Sponsor granted membership interests equivalent to an aggregate of 125,000 Founder Shares to the directors of the Company in exchange for their services through the initial Business Combination. The Founder Shares, represented by such membership interests, will remain with the Sponsor if the holder of such membership interests is no longer serving the Company prior to the initial Business Combination. The membership interest assignment of the Founder Shares to the holders of such interests are in the scope of FASB ASC Topic 718, Compensation-Stock Compensation (ASC 718). Under ASC 718, stock-based compensation associated with equity-classified awards is measured at fair value upon the assignment date. The total fair value of the 125,000 Founder Shares represented by such membership interests assigned to the holders of such interests on March 6, 2025 was $161,250 or $1.29 per share. The Company established the initial fair value Founder Shares on March 6, 2025, the date of the grant agreement, using a calculation prepared by a third-party valuation team, which takes into consideration the market adjustment of 15.0%, a risk-free rate of 4.14%, volatility of 2.0%, and implied share price of $9.90. The Founder Shares are classified as Level 3 at the measurement date due to the use of unobservable inputs, and other risk factors. The membership interests were assigned subject to a performance condition (i.e., providing services through Business Combination). Stock-based compensation would be recognized at the date a Business Combination is considered probable (i.e., upon consummation of a Business Combination) in an amount equal to the number of membership interests that ultimately vest times the assignment date fair value per share (unless subsequently modified) less the amount initially received for the assignment of the membership interests. As of December 31, 2025, the Company determined that the initial Business Combination is not considered probable and therefore no compensation expense has been recognized. 
Pursuant to the Letter Agreement, the Sponsor and the Companys officers and directors agreed not to transfer, assign or sell any of their Founder Shares and any ClassA Ordinary Shares issued upon conversion thereof until the earlier to occur of (i)one year after the completion of the initial Business Combination or (ii)the date on which the Company completes a liquidation, merger, share exchange or other similar transaction after the initial Business Combination that results in all of the Companys shareholders having the right to exchange their ClassA Ordinary Shares for cash, securities or other property. Any permitted transferees will be subject to the same restrictions and other agreements of the Letter Agreement signatories with respect to any Founder Shares (the Lock-up). Notwithstanding the foregoing, if (1)the closing price of the ClassA Ordinary Shares equals or exceeds $12.00 per share (as adjusted for share subdivisions, share capitalizations, reorganizations, recapitalizations and the like) for any 20-trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination or (2) if the Company consummates a transaction after the initial Business Combination which results in the Companys shareholders having the right to exchange their shares for cash, securities or other property, the Founder Shares will be released from the Lock-up. 
*Due from Sponsor*
As of May 1, 2025, the date of the Initial Public Offering, the Sponsor owed the Company an aggregate amount of $2,000,000, representing the Private Placement Warrant purchase by the Sponsor. The Sponsor settled the total amount it owed to the Company on May 5, 2025. As of December 31, 2025, the Company had no balance due from the Sponsor. 
*IPO Promissory NoteRelated Party*
The Sponsor agreed to loan the Company an aggregate of up to $300,000 to be used for a portion of the expenses of the Initial Public Offering pursuant to a promissory note (the IPO Promissory Note). The loan was non-interest bearing, unsecured and due at the earlier of December31, 2025, or the closing of the Initial Public Offering. As of May 1, 2025, the Company had $294,256 outstanding borrowings under the IPO Promissory Note, which became due on demand. On May 5, 2025, the Company repaid the total outstanding balance of the IPO Promissory Note and borrowings under the IPO Promissory Note are no longer available. 
F-14
*Related Party Loans*
In order to finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor or certain of the Companys officers and directors may, but are not obligated to, loan the Company funds as may be required (the Working Capital Loans). If the Company completes a Business Combination, the Company would repay the Working Capital Loans. In the event that a Business Combination does not close, the Company may use a portion of the working capital held outside the Trust Account to repay the Working Capital Loans, but no proceeds from the Trust Account would be used to repay the Working Capital Loans. Up to $1,500,000 of such Working Capital Loans may be convertible into warrants of the post-Business Combination entity at a price of $1.00 per warrant at the option of the lender. Such warrants would be identical to the Private Placement Warrants. Other than as set forth above, the terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect to such Working Capital Loans. As of December 31, 2025, no such Working Capital Loans were outstanding. 
Note6 Commitments and Contingencies
*Risks and Uncertainties*
The Companys ability to complete an initial Business Combination may be adversely affected by various factors, many of which are beyond the Companys control. The Companys ability to consummate an initial Business Combination could be impacted by, among other things, changes in laws or regulations, downturns in the financial markets or in economic conditions, inflation, fluctuations in interest rates, increases in tariffs, supply chain disruptions, declines in consumer confidence and spending, public health considerations, and geopolitical instability, such as the military conflicts in Ukraine, between the United States, Israel and Iran and others in the Middle East, and Southwest Asia or other armed hostilities. The Company cannot at this time predict the likelihood of one or more of the above events, their duration or magnitude or the extent to which they may negatively impact the Companys ability to complete an initial Business Combination.
*Registration Rights*
The holders of the (i) the Founder Shares, (ii) the Private Placement Warrants and (iii) any private placement-equivalent warrants issued in connection with the Working Capital Loans, if any (and in each case holders of their underlying securities, as applicable) are entitled to registration rights to require the Company to register for resale any of the Companys securities held by them and any other securities of the Company acquired by them prior to the consummation of the initial Business Combination pursuant to a registration rights agreement, dated April 30, 2025, which the Company entered into with the Sponsor and the other holders thereto. The majority of holders of these securities are entitled to make up to three demands, excluding short form demands, that the Company registers such securities. In addition, the holders have certain piggyback registration rights with respect to registration statements filed subsequent to the completion of the initial Business Combination. In addition, Cantor may participate in a piggyback registration only during the seven-year period beginning on the effective date of the IPO Registration Statement. The Company will bear the expenses incurred in connection with the filing of any such registration statements.
**
*Underwriting Agreement*
**
The Underwriters had a 45-day option from the date of the Initial Public Offering to purchase up to an additional 3,960,000 Option Units to cover over-allotments (the Over-Allotment Option). On May 1, 2025, the Underwriters partially exercised their Over-Allotment Option, purchasing 3,600,000 Option Units and forfeiting the remaining unexercised balance of 360,000 Option Units at a price of $10.00 per Option Unit. 
The Underwriters received a cash underwriting discount of $5,280,000 (2.0% of the gross proceeds of the Units offered in the Initial Public Offering), excluding any proceeds from Units sold pursuant to the Over-Allotment Option, which was paid to the Underwriters upon the closing of the Initial Public Offering. Additionally, the Underwriters are entitled to a deferred underwriting discount of 4.0% of the gross proceeds of the Initial Public Offering held in the Trust Account other than those sold pursuant to the Over-Allotment Option and 6.0% of the gross proceeds sold pursuant to the Over-Allotment Option, $12,720,000 in the aggregate, payable upon the completion of the initial Business Combination, subject to the terms of the underwriting agreement, dated April 30, 2025, which the Company entered into with Cantor (such fee, the Deferred Fee). 
F-15
Note7 Shareholders Deficit
*Preference Shares*
The Company is authorized to issue a total of 5,000,000 preference shares at par value of $0.0001 each. As of December 31, 2025, there were no preference shares issued or outstanding. 
*ClassA Ordinary Shares*
The Company is authorized to issue a total of 500,000,000 ClassA Ordinary Shares at par value of $0.0001 each. As of December 31, 2025, there were no ClassA Ordinary Shares issued or outstanding, excluding the 30,000,000 Class A Ordinary Shares subject to possible redemption. 
*ClassB Ordinary Shares*
The Company is authorized to issue a total of 50,000,000 ClassB Ordinary Shares at par value of $0.0001 each. As of December 31, 2025, there were 7,500,000 Class B Ordinary Shares issued and outstanding. 
The Founder Shares will automatically convert into ClassA Ordinary Shares concurrently with or immediately following the consummation of the initial Business Combination, or earlier at the option of the holder, on a one-for-one basis, subject to adjustment for share subdivisions, share capitalizations, reorganizations, recapitalizations and the like, and subject to further adjustment as provided herein. In the case that additional ClassA Ordinary Shares, or any other equity-linked securities, are issued or deemed issued in excess of the amounts sold in the Initial Public Offering and related to or in connection with the closing of the initial Business Combination, the ratio at which ClassB Ordinary Shares convert into ClassA Ordinary Shares will be adjusted (unless the holders of a majority of the outstanding ClassB Ordinary Shares agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of ClassA Ordinary Shares issuable upon conversion of all ClassB Ordinary Shares will equal, in the aggregate, 20% of the sum of (i)the total number of all Ordinary Shares outstanding upon the completion of the Initial Public Offering (including any ClassA Ordinary Shares issued pursuant to the Over-Allotment Option and excluding the ClassA Ordinary Shares underlying the Private Placement Warrants issued to the Sponsor), plus (ii)all ClassA Ordinary Shares and equity-linked securities issued or deemed issued, in connection with the closing of the initial Business Combination (excluding any shares or equity-linked securities issued, or to be issued, to any seller in the initial Business Combination and any warrants issued to the Sponsor or any of its affiliates or to the Companys officers or directors upon conversion of any Working Capital Loans) minus (iii)any redemptions of ClassA Ordinary Shares by Public Shareholders in connection with an initial Business Combination; provided that such conversion of Founder Shares will never occur on a less than one-for-one basis. 
Holders of record of the Ordinary Shares are entitled to one vote for each Ordinary Share held on all matters to be voted on by shareholders. Unless specified in the Amended and Restated Articles or as required by the Companies Act (As Revised) of the Cayman Islands or stock exchange rules, an Ordinary Resolution under Cayman Islands law and the Amended and Restated Articles, which requires the affirmative vote of at least a majority of the votes cast by such shareholders as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at the applicable general meeting of the Company is generally required to approve any matter voted on by the Companys shareholders. Approval of certain actions requires a Special Resolution, and pursuant to the Amended and Restated Articles, such actions include amending the Amended and Restated Articles and approving a statutory merger or consolidation with another company. There is no cumulative voting with respect to the appointment of directors, meaning, following the Business Combination, the holders of more than 50% of the Ordinary Shares voted for the appointment of directors can elect all of the directors. Prior to the consummation of the initial Business Combination, only holders of the ClassB Ordinary Shares (i)have the right to vote on the appointment and removal of directors and (ii)are entitled to vote on continuing the Company in a jurisdiction outside the Cayman Islands (including any Special Resolution required to amend the constitutional documents or to adopt new constitutional documents, in each case, as a result of approving a transfer by way of continuation in a jurisdiction outside the Cayman Islands). Holders of the ClassA Ordinary Shares are not entitled to vote on these matters during such time. These provisions of the Amended and Restated Articles may only be amended if approved by a Special Resolution (or, where such amendment is proposed in respect of the consummation of the initial Business Combination, two-thirds) of the votes cast by such shareholders as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at the applicable general meeting of the Company. 
F-16
*Warrants*
As of December 31, 2025, there were 22,280,000 Warrants outstanding, including 15,000,000 Public Warrants and 7,280,000 Private Placement Warrants. Each whole Warrant entitles the holder to purchase one ClassA Ordinary Share at a price of $11.50 per share, subject to adjustment as discussed herein. The Warrants cannot be exercised until 30days after the completion of the initial Business Combination, and will expire at 5:00p.m., NewYork City time, fiveyears after the completion of the initial Business Combination or earlier upon redemption or liquidation. 
The Company will not be obligated to deliver any ClassA Ordinary Shares pursuant to the exercise of a Warrant and will have no obligation to settle such Warrant exercise unless a registration statement under the Securities Act with respect to the Class A Ordinary Shares underlying the Warrants is then effective and a prospectus relating thereto is current. No Warrant will be exercisable and the Company will not be obligated to issue a Class A Ordinary Share upon exercise of a Warrant unless the ClassA Ordinary Share issuable upon such warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the Warrants. In the event that the conditions in the two immediately preceding sentences are not satisfied with respect to a Warrant, the holder of such Warrant will not be entitled to exercise such Warrant and such Warrant may have no value and expire worthless. In no event will the Company be required to net cash settle any Warrant. In the event that a registration statement is not effective for the exercised Warrants, the purchaser of a unit containing such Warrants will have paid the full purchase price for the unit solely for the ClassA Ordinary Share underlying such unit.
Under the terms of the warrant agreement, dated April 30, 2025, by and between the Company and Continental (the Warrant Agreement), the Company has agreed that, as soon as practicable, but in no event later than 20business days after the closing of its Business Combination, it will use commercially reasonable efforts to file with the SEC a post-effective amendment to the IPO Registration Statement or a new registration statement covering the registration under the Securities Actofthe ClassA Ordinary Shares issuable upon exercise of the Warrants and thereafter will use its commercially reasonable efforts to cause the same to become effective within 60business days following the initial Business Combination and to maintain a current prospectus relating to the ClassA Ordinary Shares issuable upon exercise of the Warrants until the expiration of the Warrants in accordance with the provisions of the Warrant Agreement. If a registration statement covering the ClassA Ordinary Shares issuable upon exercise of the Warrants is not effective by the sixtieth (60th) businessday after the closing of the initial Business Combination, Warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration statement, exercise Warrants on a cashless basis in accordance with Section3(a)(9)of the Securities Act or another exemption. Notwithstanding the above, if the ClassA Ordinary Shares are at the time of any exercise of a Warrant not listed on a national securities exchange such that they satisfy the definition of a covered security under Section18(b)(1)of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise their Public Warrants to do so on a cashless basis in accordance with Section3(a)(9)of the Securities Act and, in the event the Company so elects, the Company will not be required to file or maintain in effect a registration statement, and in the event the Company does not so elect, the Company will use its commercially reasonable efforts to register or qualify the Class A Ordinary Shares under applicable blue sky laws to the extent an exemption is not available.
If the Public Warrant holders exercise their Public Warrants on a cashless basis, they would pay the warrant exercise price by surrendering the Warrants for that number of ClassA Ordinary Shares equal to the quotient obtained by dividing (x)the product of the number of ClassA Ordinary Shares underlying the Warrants, multiplied by the excess of the fair market value of the ClassA Ordinary Shares over the exercise price of the Warrants by (y)the fair market value. The fair market value is the average reported closing price of the ClassA Ordinary Shares for the 10trading days ending on the thirdtrading day prior to the date on which the notice of exercise is received by Continental or on which the notice of redemption is sent to the holders of Warrants, as applicable. 
*Redemption of Warrants When the Price per ClassA Ordinary Share Equals or Exceeds $18.00* 
The Company may redeem the outstanding Warrants:
| | | in whole and not in part; | |
| | | at a price of $0.01 per Warrant; | |
| | | upon a minimum of 30days prior written notice of redemption; and | |
F-17
| | | if, and only if, the closing price of the ClassA Ordinary Shares equals or exceeds $18.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a Warrant) for any 20trading days within a 30-tradingday period commencing at least 30days after completion of the Companys initial Business Combination and ending threebusiness days before the Company sends the notice of redemption to the Warrant holders. | |
Additionally, if the number of outstanding ClassA Ordinary Shares is increased by a share capitalization payable in ClassA Ordinary Shares, or by a subdivision of Ordinary Shares or other similar event, then, on the effective date of such share capitalization, subdivision or similar event, the number of ClassA Ordinary Shares issuable upon exercise of each Warrant will be increased in proportion to such increase in the outstanding Ordinary Shares. A rights offering made to all or substantially all holders of Ordinary Shares entitling holders to purchase ClassA Ordinary Shares at a price less than the fair market value will be deemed a share capitalization of a number of Class A Ordinary Shares equal to the product of (i)the number of ClassA Ordinary Shares actually sold in such rights offering (or issuable under any other equity securities sold in such rights offering that are convertible into or exercisable for ClassA Ordinary Shares) and (ii)the quotient of (x)the price per ClassA Ordinary Share paid in such rights offering and (y)the fair market value. For these purposes (i)if the rights offering is for securities convertible into or exercisable for ClassA Ordinary Shares, in determining the price payable for ClassA Ordinary Shares, there will be taken into account any consideration received for such rights, as well as any additional amount payable upon exercise or conversion and (ii)fair market value means the volume weighted average price of ClassA Ordinary Shares as reported during the ten (10)trading day period ending on thetrading day prior to the first date on which the ClassA Ordinary Shares trade on the applicable exchange or in the applicable market, regular way, without the right to receive such rights.
Note8 Fair Value Measurements
The fair value of the Companys financial assets and liabilities reflects Managements estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:
| | Level 1: | Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. | |
| | | | |
| | Level 2: | Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. | |
| | | | |
| | Level 3: | Unobservable inputs based on an assessment of the assumptions that market participants would use in pricing the asset or liability. | |
The following table presents information about the Companys assets that are measured at fair value as of December 31, 2025 and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:
| | | Level | | | December 31, 2025 | | |
| Assets: | | | | | | | | | |
| Money market mutual funds | | | 1 | | | $ | 308,053,817 | | |
| | | | | | | | | | |
The estimated fair values of investments held in Trust Account are determined using available market information. Fair values of these investments are determined by utilizing quoted prices (unadjusted) in active markets for identical assets.
F-18
At May 1, 2025, the fair value of the Public Warrants was $2,700,000, or $0.18 per Public Warrant. The fair value of Public Warrants was determined using Monte Carlo Simulation Model. The Public Warrants are classified within shareholders deficit and will not require remeasurement after issuance. The following table presents the quantitative information regarding market assumptions used in the valuation of the Public Warrants: 
| | | May 1, 2025 | | |
| Implied Class A Ordinary Share price | | $ | 9.91 | | |
| Exercise price | | $ | 11.50 | | |
| Simulation term (years) | | | 7.0 | | |
| Risk-free rate (continuous) | | | 4.07 | % | |
| Selected volatility | | | 3.0 | % | |
| Probability of De-SPAC and Market Adjustment | | | 14.0 | % | |
Note 9 Segment Information
FASB 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 that engage in business activities from which it may recognize revenues and incur expenses, and for which separate financial information is available that is regularly evaluated by the Companys chief operating decision maker (the CODM), or group, in deciding how to allocate resources and assess performance.
The Companys CODM has been identified as the Chief Financial Officer, 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 segment. 
The CODM assesses performance for the single segment and decides how to allocate resources based on net income or loss that also is reported on the statements of operations as net income or loss. The measure of segment assets is reported on the accompanying balance sheet as total assets. When evaluating the Companys performance and making key decisions regarding resource allocation, the CODM reviews several key metrics included in the net income and total assets, which include the following:
| | | December 31, | | |
| | | 2025 | | |
| Investments held in Trust Account | | $ | 308,053,817 | | |
| Cash | | $ | 1,016,713 | | |
| | | For the period from January 23, 2025 (Inception) through December 31, 2025 | | |
| General and administrative costs | | $ | 359,106 | | |
| Earnings from investments held in Trust Account | | $ | 8,053,817 | | |
The CODM reviews earnings from investments 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 investment management trust agreement, dated April 30, 2025, which the Company entered into with Continental. General and administrative costs are reviewed and monitored by the CODM to manage and forecast cash to ensure enough capital is available to complete a Business Combination or similar transaction within the Combination Period. The CODM also reviews general and administrative costs to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and budget. General and administrative costs, as reported on the accompany statement of operations, are the significant segment expense provided to the CODM on a regular basis.
The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant accounting policies.
Note 10 Subsequent Events
The Company evaluated subsequent events and transactions that occurred after the accompanying balance sheet date through the date of the issuance of the accompanying financial statements. Based upon this review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the accompanying financial statements.
F-19
EXHIBIT INDEX
| 
No. | 
| 
Description
of Exhibit | |
| 
1.1 | 
| 
Underwriting Agreement,
dated April 30, 2025, by and between the Company and Cantor Fitzgerald & Co., as representative of the several Underwriters.
(3) | |
| 
3.1 | 
| 
Amended and Restated Memorandum
and Articles of Association of the Company. (3) | |
| 
4.1 | 
| 
Specimen Unit Certificate.(2) | |
| 
4.2 | 
| 
Specimen Ordinary Share Certificate. (2) | |
| 
4.3 | 
| 
Specimen Warrant Certificate
(included in Exhibit 4.4). | |
| 
4.4 | 
| 
Warrant Agreement, dated
April 30, 2025, by and between the Company and Continental Stock Transfer & Trust Company, as warrant agent. (3) | |
| 
4.5 | 
| 
Description of Registered
Securities.* | |
| 
10.1 | 
| 
Promissory Note issued
to Republic Sponsor 1 LLC. (1) | |
| 
10.2 | 
| 
Securities Subscription Agreement between Republic Sponsor 1 LLC and the Company. (1) | |
| 
10.8 | 
| 
Form of Indemnity Agreement. (2) | |
| 
10.3 | 
| 
Investment Management Trust Agreement, dated April 30, 2025, by and between the Company and Continental Stock Transfer & Trust Company, as trustee. (3) | |
| 
10.4 | 
| 
Registration Rights Agreement,
dated April 30, 2025, by and among the Company and certain security holders. (3) | |
| 
10.5 | 
| 
Private Placement Warrants
Purchase Agreement, dated April 30, 2025, by and between the Company and the Sponsor. (3) | |
| 
10.6 | 
| 
Private Placement Warrants Purchase Agreement, dated April 30, 2025, by and between the Company and Cantor Fitzgerald & Co. (3) | |
| 
10.7 | 
| 
Letter Agreement, dated April 30, 2025, by and among the Company, its officers, directors and the Sponsor. (3) | |
| 
14 | 
| 
Code of Business Conduct and Ethics, adopted April 30, 2025.* | |
| 
19 | 
| 
Insider Trading Policies and Procedures, adopted April 30, 2025.* | |
| 
31.1 | 
| 
Certification of the Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* | |
| 
31.2 | 
| 
Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* | |
| 
32.1 | 
| 
Certification of the Principal Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.** | |
| 
32.2 | 
| 
Certification of the Principal Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.** | |
| 
97 | 
| 
Executive Compensation Clawback Policy, adopted April 30, 2025.* | |
| 
99.1 | 
| 
Audit Committee Charter. (2) | |
| 
99.2 | 
| 
Compensation Committee Charter. (2) | |
| 
101.INS | 
| 
Inline XBRL Instance Document.* | |
| 
101.SCH | 
| 
Inline XBRL Taxonomy Extension
Schema Document.* | |
| 
101.CAL | 
| 
Inline XBRL Taxonomy Extension
Calculation Linkbase Document.* | |
| 
101.DEF | 
| 
Inline XBRL Taxonomy Extension
Definition Linkbase Document.* | |
| 
101.LAB | 
| 
Inline XBRL Taxonomy Extension
Label Linkbase Document.* | |
| 
101.PRE | 
| 
Inline XBRL Taxonomy Extension
Presentation Linkbase Document.* | |
| 
104 | 
| 
Cover Page Interactive
Data File (Embedded as Inline XBRL document and contained in Exhibit 101).* | |
| 
* | Filed herewith. | 
|
| 
** | Furnished herewith. | 
|
| 
(1) | Incorporated
by reference to the Companys Registration Statement on Form S-1 (File No. 333-285386), filed with the SEC on February 27, 2025. | 
|
| 
(2) | Incorporated
by reference to Amendment No. 1 to the Companys Registration Statement on Form S-1/A (File No. 333-285386), filed with the SEC
on March 31, 2025. | 
|
| 
(3) | Incorporated
by reference to the Companys Current Report on Form 8-K, filed with the SEC on May 2, 2025. | 
|
45
SIGNATURES
Pursuant to the requirements
of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by
the undersigned, thereunto duly authorized.
| 
March 26, 2026 | 
Republic Digital Acquisition Company | |
| 
| 
| 
| |
| 
| 
By: | 
/s/ Joseph Naggar | |
| 
| 
Name: | 
Joseph Naggar | |
| 
| 
Title: | 
Chief Executive Officer (Principal Executive Officer) | |
Pursuant to the requirements
of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in
the capacities and on the dates indicated.
| 
Name | 
| 
Position | 
| 
Date | |
| 
| 
| 
| 
| 
| |
| 
/s/ Joseph Naggar | 
| 
Chief Executive Officer and Director | 
| 
March 26, 2026 | |
| 
Joseph Naggar | 
| 
(Principal Executive Officer) | 
| 
| |
| 
| 
| 
| 
| 
| |
| 
/s/ Robert Urgo | 
| 
Chief Financial Officer | 
| 
March 26, 2026 | |
| 
Robert Urgo | 
| 
(Principal Financial and Accounting Officer) | 
| 
| |
| 
| 
| 
| 
| 
| |
| 
/s/ Andrew Durgee | 
| 
Director | 
| 
March 26, 2026 | |
| 
Andrew Durgee | 
| 
| 
| 
| |
| 
| 
| 
| 
| 
| |
| 
/s/ Laya Khadjavi | 
| 
Director | 
| 
March 26, 2026 | |
| 
Laya Khadjavi | 
| 
| 
| 
| |
| 
| 
| 
| 
| 
| |
| 
/s/ Barry Finkelstein | 
| 
Director | 
| 
March 26, 2026 | |
| 
Barry Finkelstein | 
| 
| 
| 
| |
| 
| 
| 
| 
| 
| |
| 
/s/ Robert Matza | 
| 
Director | 
| 
March 26, 2026 | |
| 
Robert Matza | 
| 
| 
| 
| |
46