United Acquisition Corp. I (UAC) — 10-K

Filed 2026-03-30 · Period ending 2025-12-31 · 58,805 words · SEC EDGAR

← UAC Profile · UAC JSON API

# United Acquisition Corp. I (UAC) — 10-K

**Filed:** 2026-03-30
**Period ending:** 2025-12-31
**Accession:** 0001493152-26-013617
**Source:** [SEC EDGAR](https://www.sec.gov/Archives/edgar/data/2098669/000149315226013617/)
**Origin leaf:** 356aa4bac52ea120bc543057678a864f1f583a8b580a5d4356db9f4528bbd90d
**Words:** 58,805



---

**
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 period from October 22, 2025 (inception) through 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 001-43084**
OCTOBER
22, 2025
United
Acquisition Corp. I
(Exact
Name of Registrant as Specified in Its Charter)
| 
Cayman Islands | 
| 
98-1893434 | |
| 
(State or Other Jurisdiction
ofIncorporation or Organization) | 
| 
(I.R.S. EmployerIdentification
No.) | |
| 
| 
| 
| |
| 
7100 W. Camino Real,
Suite 302-48 Boca Raton, Florida | 
| 
33433 | |
| 
(Address of Principal
Executive Offices) | 
| 
(Zip Code) | |
****
**Registrants
telephone number, including area code: +1 212-847-3248**
****
**Securities
registered pursuant to Section 12(b) of the Act:**
****
| 
Title of
Each Class | 
| 
Trading Symbol(s) | 
| 
Name of Each
Exchange on Which Registered | |
| 
Class A ordinary shares,
par value $0.0001 per share | 
| 
UAC | 
| 
NYSE American LLC | |
| 
Redeemable warrants,
each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50 | 
| 
UACW | 
| 
NYSE American LLC | |
| 
Units, each consisting
of one Class A ordinary share, $0.0001 par value, and one-quarter of one redeemable warrant | 
| 
UACU | 
| 
NYSE American LLC | |
****
**Securities
registered pursuant to Section 12(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. Yes No 
Indicate
by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes No 
Indicate
by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 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. Yes No 
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). Yes No 
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.
| 
Large accelerated filer | 
| 
Accelerated filer | 
| |
| 
Non-accelerated filer | 
| 
Smaller reporting company | 
| |
| 
| 
| 
Emerging growth company | 
| |
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
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). Yes No 
The
registrants securities were not listed on any exchange and had no value as of the last business day of the second fiscal quarter
of 2025. The registrants units, Class A ordinary shares and warrants began trading on NYSE American LLC (NYSE American
or NYSE) on January 28, 2026. Accordingly, there was no market value for the registrants common equity as of the
last business day of the second fiscal quarter of 2025.
As
of March 30, 2026, there were 10,459,580 Class A ordinary shares, $0.0001 par value and 3,394,100 Class B ordinary shares, $0.0001 par
value, issued and outstanding.
| | |
| | |
united
ACQUISITION CORP. i
ANNUAL REPORT ON FORM 10-K
TABLE
OF CONTENTS
| 
| 
| 
Page | |
| 
Certain Terms | 
ii | |
| 
Cautionary Note Regarding Forward-Looking Statements And Risk Factor Summary | 
iv | |
| 
Part I | 
| 
1 | |
| 
Item 1. | 
Business | 
1 | |
| 
Item 1A. | 
Risk Factors | 
18 | |
| 
Item 1B. | 
Unresolved Staff Comments | 
34 | |
| 
Item 1C. | 
Cybersecurity | 
34 | |
| 
Item 2. | 
Property | 
34 | |
| 
Item 3. | 
Legal Proceedings | 
34 | |
| 
Item 4. | 
Mine Safety Disclosures | 
34 | |
| 
Part II | 
| 
35 | |
| 
Item 5. | 
Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 
35 | |
| 
Item 6. | 
[Reserved] | 
36 | |
| 
Item 7. | 
Managements Discussion and Analysis of Financial Condition and Results of Operations | 
36 | |
| 
Item 7A. | 
Quantitative and Qualitative Disclosures about Market Risk | 
40 | |
| 
Item 8. | 
Financial Statements and Supplementary Data | 
40 | |
| 
Item 9. | 
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 
40 | |
| 
Item 9A. | 
Controls and Procedures | 
40 | |
| 
Item 9B. | 
Other Information | 
41 | |
| 
Item 9C. | 
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections | 
41 | |
| 
Part III | 
| 
41 | |
| 
Item 10. | 
Directors, Executive Officers and Corporate Governance | 
41 | |
| 
Item 11. | 
Executive Compensation | 
50 | |
| 
Item 12. | 
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 
50 | |
| 
Item 13. | 
Certain Relationships and Related Transactions, and Director Independence | 
52 | |
| 
Item 14. | 
Principal Accountant Fees and Services | 
54 | |
| 
Part IV | 
| 
55 | |
| 
Item 15. | 
Exhibits, Financial Statement Schedules | 
55 | |
| 
Item 16. | 
Form 10-K Summary | 
55 | |
| 
Index to Financial Statements | 
F-1 | |
| i | |
| | |
****
CERTAIN
TERMS
Unless
otherwise stated in this Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (the Annual Report on Form 10-K
or Annual Report), references to:
| 
| 
| 
Class
A ordinary shares are to our Class A ordinary shares, par value $0.0001; | |
| 
| 
| 
| |
| 
| 
| 
Class
B ordinary shares are to our Class B ordinary shares, par value $0.0001; | |
| 
| 
| 
| |
| 
| 
| 
Companies
Act are to the Companies Act (As Revised) of the Cayman Islands as the same may be amended from time to time | |
| 
| 
| 
| |
| 
| 
| 
company,
we, us, our, or our company are to United Acquisition Corp. I, a Cayman Islands
exempted company with limited liability | |
| 
| 
| 
| |
| 
| 
| 
completion
window are to (i) the period of 24 months from the closing of the initial public offering, or such earlier liquidation date
as our board of directors may approve, in which we must complete an initial business combination, or (ii)such other time
period in which we must complete an initial business combination pursuant to an amendment to our amended and restated memorandum
and articles of association | |
| 
| 
| 
| |
| 
| 
| 
Excise
Tax are to the 1% U.S. federal excise tax that was implemented by the Inflation Reduction Act of 2022 | |
| 
| 
| 
| |
| 
| 
| 
founder
shares are to our Class B ordinary shares initially issued to our Sponsor (as defined below) in a private placement prior
to the initial public offering and the Class A ordinary shares that will be issued upon the automatic conversion of the Class B ordinary
shares at the time of our initial business combination or earlier at the option of the holder on a one-for-one basis, subject to
adjustment as described herein (for the avoidance of doubt, such Class A ordinary shares will not be public shares
with redemption rights) | |
| 
| 
| 
| |
| 
| 
| 
initial
public offering are to our initial public offering of units completed on January 30, 2026 | |
| 
| 
| 
| |
| 
| 
| 
management
or our management team are to our executive officers and directors; | |
| 
| 
| 
| |
| 
| 
| 
ordinary
resolution are to a resolution of the 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 the company, or a resolution approved
in writing by all of the holders of the issued shares entitled to vote on such matter; | |
| 
| 
| 
| |
| 
| 
| 
ordinary
shares are to our Class A ordinary shares and our Class B ordinary shares | |
| 
| 
| 
| |
| 
| 
| 
permitted
withdrawals are to amounts withdrawn (i) to fund our working capital requirements, which amount will be the lesser of $500,000
or 5% of the annual interest earned on the trust account, and (ii) to pay our taxes (other than excise taxes, if any), provided that
all permitted withdrawals can only be made (x) from interest and not from the principal held in the trust account and (y) only to
the extent such interest is in amount sufficient to cover the permitted withdrawal amount; | |
| 
| 
| 
| |
| 
| 
| 
private
placement shares are to the Class A ordinary shares underlying the private placement units issued to our Sponsor (as defined
below) and to Lucid Capital Markets, LLC and Chardan Capital Markets, LLC, the underwriters of the initial public offering, in a
private placement simultaneously with the closing of the initial public offering or upon conversion of working capital loans, as
further described in this Annual Report (such Class A ordinary share delivered upon conversion shall not have any redemption rights
or be entitled to liquidating distributions from the trust account if we fail to consummate an initial business combination) | |
| ii | |
| | |
| 
| 
| 
private
placement units are to the private placement units issued to our sponsor and the underwriters of the initial public offering
in a private placement simultaneously with the closing of the initial public offering (which private placement units are identical
to the public units sold in the initial public offering, subject to certain limited exceptions as described in this Annual Report)
and upon conversion of working capital loans, as further described in this Annual Report | |
| 
| 
| 
| |
| 
| 
| 
private
placement warrants are to the non-redeemable warrants (i) issued to our sponsor and (ii) underlying the private placement
units issued to our Sponsor and to Lucid Capital Markets, LLC and Chardan Capital Markets, LLC, the underwriters of the initial public
offering, each in a private placement simultaneously with the closing of the initial public offering or upon conversion of working
capital loans, as further described in this Annual Report | |
| 
| 
| 
| |
| 
| 
| 
public
shareholders are to the holders of our public shares, including our Sponsor and management team to the extent our Sponsor
and/or 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 | |
| 
| 
| 
| |
| 
| 
| 
public
shares are to our Class A ordinary shares sold as part of the public units in the initial public offering (whether they are
purchased in the initial public offering or thereafter in the open market) | |
| 
| 
| 
| |
| 
| 
| 
public
warrants are to the redeemable warrants sold as part of the public units in the initial public offering (whether they are
purchased in the initial public offering or thereafter in the open market, including warrants that may be acquired by our Sponsor
or its affiliates in the initial public offering or thereafter in the open market) | |
| 
| 
| 
| |
| 
| 
| 
special
resolution are to a resolution of the company passed by a majority of at least two-thirds (2/3) (or such higher approval threshold
as specified in the post-offering memorandum and articles of association) 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 the 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; | |
| 
| 
| 
| |
| 
| 
| 
Sponsor
are to United Acquisition SPAC LLC, a Delaware limited liability company affiliated with our executive officers and directors | |
| 
| 
| 
| |
| 
| 
| 
underwriters
are to Lucid Capital Markets, LLC and Chardan Capital Markets, LLC, which are the underwriters of the initial public offering; | |
| 
| 
| 
| |
| 
| 
| 
U.S.
Holder are to an individual who is a beneficial owner of our units, Class A ordinary shares or warrants (for U.S. federal
income tax purposes) and is: | |
| 
| 
| 
o | 
an
individual who is a citizen or resident of the United States; | |
| 
| 
| 
| 
| |
| 
| 
| 
o | 
a corporation
(or other entity taxable as a corporation) organized in or under the laws of the United States, any state thereof or the District
of Columbia; or | |
| 
| 
| 
| 
| |
| 
| 
| 
o | 
an estate
or trust the income of which is includible in gross income for U.S. federal income tax purposes regardless of its source; and | |
| 
| 
| 
warrants
are to our redeemable public warrants and non-redeemable private placement warrants as further described in this Annual Report. | |
| iii | |
| | |
****
CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS AND
RISK FACTOR SUMMARY
Some
of the statements contained in this Annual Report may constitute forward-looking statements for purposes of the federal
securities laws. Our forward-looking statements include, but are not limited to, statements regarding our or our management teams
expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts
or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.
The
words aim, anticipate, believe, continue, could, estimate,
expect, intend, may, might, plan, possible, potential,
predict, project, should, would and similar expressions may identify forward-looking
statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this
Annual Report may include, for example, statements about:
| 
| 
| 
our
being a company with no operating history and no revenues; | |
| 
| 
| 
| |
| 
| 
| 
our ability
to select an appropriate target business or businesses; | |
| 
| 
| 
| |
| 
| 
| 
our ability
to complete our initial business combination | |
| 
| 
| 
| |
| 
| 
| 
our expectations
around the performance of the prospective target business or businesses; | |
| 
| 
| 
| |
| 
| 
| 
our success
in retaining or recruiting, or changes required in, our officers, key employees or directors following our initial business combination; | |
| 
| 
| 
| |
| 
| 
| 
our officers
and directors allocating their time to other businesses and potentially having conflicts of interest with our business or in approving
our initial business combination; | |
| 
| 
| 
| |
| 
| 
| 
our potential
ability to obtain additional financing to complete our initial business combination; | |
| 
| 
| 
| |
| 
| 
| 
our pool
of prospective target businesses; | |
| 
| 
| 
| |
| 
| 
| 
our ability
to consummate an initial business combination due to the uncertainty resulting from geopolitical events, acts of war or terrorism
such as the conflicts in Ukraine and Russia or the Middle East, economic impacts such as inflation and rising interest rates, and
public health emergencies such as another pandemic and other epidemics; | |
| 
| 
| 
| |
| 
| 
| 
the ability
of our officers and directors to generate a number of potential business combination opportunities; | |
| 
| 
| 
| |
| 
| 
| 
our ability
to obtain additional financing to complete a business combination; | |
| 
| 
| 
| |
| 
| 
| 
our public
securities potential liquidity and trading; | |
| 
| 
| 
| |
| 
| 
| 
the lack
of a market for our securities; | |
| 
| 
| 
| |
| 
| 
| 
the use
of proceeds or funds not held in the trust account or available to us from interest income on the trust account balance; | |
| 
| 
| 
| |
| 
| 
| 
the number
of redemptions by our public shareholders in connection with a business combination; | |
| 
| 
| 
| |
| 
| 
| 
the trust
account not being subject to claims of third parties; or | |
| 
| 
| 
| |
| 
| 
| 
our financial
performance following the initial public offering. | |
| iv | |
| | |
The
forward-looking statements contained in this Annual Report are based on our current expectations and beliefs concerning future developments
and their potential effects on us. There can be no assurance that future developments affecting us will 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.
These risks and uncertainties include, but are not limited to, those factors described under the heading Risk Factors.
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.
In
addition, statements that contain we believe and similar statements reflect our beliefs and opinions on the relevant subject.
These statements are based on information available to us as of the date of this Annual Report. Although we believe that this information
provides a reasonable basis for these statements, this information may be limited or incomplete. Our statements should not be read to
indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain,
and investors are cautioned not to unduly rely on these statements.
The
following is a summary of the principal risks that could materially adversely affect our business, financial condition or results of
operations in future periods. The summary should be read in conjunction with the more detailed description of each risk factor described
in *Part 1, Item 1A Risk Factors*section of this Annual Report and should not be relied upon as an exhaustive summary of the material
risks facing our business:
| 
| 
| 
our being a
company with no operating history and no revenues | |
| 
| 
| 
| |
| 
| 
| 
our ability to select an
appropriate target business or businesses | |
| 
| 
| 
| |
| 
| 
| 
our ability to complete
our initial business combination | |
| 
| 
| 
| |
| 
| 
| 
our expectations around
the performance of a prospective target business or businesses | |
| 
| 
| 
| |
| 
| 
| 
our success in retaining
or recruiting, or changes required in, our officers, key employees or directors following our initial business combination | |
| 
| 
| 
| |
| 
| 
| 
our officers and directors
allocating their time to other businesses and potentially having conflicts of interest with our business or in approving our initial
business combination | |
| 
| 
| 
| |
| 
| 
| 
our potential ability to
obtain additional financing to complete our initial business combination | |
| 
| 
| 
| |
| 
| 
| 
target businesses, including
the location and industry of such target businesses | |
| 
| 
| 
| |
| 
| 
| 
the ability of our officers
and directors to generate a number of potential business combination opportunities | |
| 
| 
| 
| |
| 
| 
| 
our public securities
potential liquidity and trading | |
| 
| 
| 
| |
| 
| 
| 
the lack of a market for
our securities | |
| 
| 
| 
| |
| 
| 
| 
the use of proceeds not
held in the trust account or available to us from interest income on the trust account balance | |
| 
| 
| 
| |
| 
| 
| 
the availability to us
of funds from interest income on the trust account balance | |
| 
| 
| 
| |
| 
| 
| 
the trust account not being
subject to claims of third parties | |
| 
| 
| 
| |
| 
| 
| 
our financial performance
following the initial public offering or | |
| 
| 
| 
| |
| 
| 
| 
the other risks and uncertainties
discussed in Risk Factors and elsewhere in this Annual Report. | |
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.
| v | |
| | |
PART
I
Item
1. Business
We
are a blank check company or special purpose acquisition company, incorporated on October 22, 2025, as a Cayman Islands exempted company
with limited liability and formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, recapitalization,
reorganization or other similar business combination with one or more businesses, which we refer to throughout this Annual Report as
our initial business combination or our business combination.
Our
executive officers and directors possess extensive operational, investing, business development, international trade, and government
policy experience across various industries in the United States and internationally. Our management and directors relationships
extend to key market participants including investment firms, business leaders, and agencies in the U.S. and throughout the world. We
believe our management teams expertise and ability to navigate in both private and public sectors, as well as its access to a
network of regional resources familiar with local companies in the U.S. and internationally, which will allow us to identify potential
acquisition opportunities.
Our
Sponsor is controlled by Mr. Paul Packer, our Chairman, Chief Executive Officer and Chief Financial Officer, who is the founder of
Globis Capital Advisors. Globis Capital Advisors is a Florida-based investment advisory firm founded in 2001. Since inception,
Globis Capital Advisors has invested in both private and public companies, in the U.S. and internationally, across a wide range of
industries.
In
August 2020, an affiliate of Globis Capital Advisors founded Globis Acquisition Corp., a blank check company formed for substantially
similar purposes as our company. Globis Acquisition Corp. completed its initial public offering in December 2020, generating gross proceeds
of $115,000,000. In June 2022, Globis Acquisition Corp. completed its initial business combination with Forafric Global Plc, an integrated
global business involved in the purchase, storage, transport, processing and sale of agricultural commodities and commodity products.
Mr. Packer served as a director of Forafric Global Plc from the completion of the business combination until February 2026.
We
believe that our Sponsor, management, and directors combination of investment track records, broad personal and professional relationships
in a variety of countries and industries, and experience in both public and private transactions will enable us to identify and successfully
structure a business combination with a target company. In addition, we believe our ability to access the resources and transaction experience
of a leading institution in the special purpose acquisition company (SPAC) market will enable us to efficiently execute and close a business
combination with a target.
We
believe that our management team is well-positioned to identify attractive risk-adjusted returns in the marketplace and that our deal
sourcing channels, ranging from industry executives, private owners, private equity funds, and investment bankers will enable us to pursue
a broad range of opportunities. Additionally, our management believes that its ability to identify and implement value creation initiatives
will remain central to its differentiated acquisition strategy. We intend to primarily focus our target sourcing efforts on private companies
that we believe would benefit from a public listing and partnership with our team and that otherwise cannot gain access to public capital
in this current market environment. We believe that our management teams background and prior successes could have a significant
short- and long-term impact on target businesses and offer a compelling opportunity for targets seeking an alternative path to liquidity
and value maximization.
With
respect to the foregoing, past performance by our management, including their affiliates past performance, is not a guarantee
either (i) of success with respect to any business combination we may consummate or (ii) that we will be able to locate a suitable candidate
for our initial business combination. Shareholders should not rely on the historical record of our management team or their affiliates
as indicative of our future performance.
| 1 | |
| | |
Initial
Public Offering
On
January 30, 2026, we consummated the initial public offering of 10,000,000 units at $10.00 per unit, generating gross proceeds of $100,000,000.
Simultaneously with the closing of the initial public offering, we consummated the sale of 175,000 private placement units to our Sponsor
and 100,000 private placement units to Lucid Capital Markets, LLC and Chardan Capital Markets, LLC at a price of $10.00 per private placement
unit, and we consummated the sale of 2,333,333 private placement warrants to our Sponsor at a price of $0.75 per private placement warrant,
generating gross proceeds of $4,500,000 (the Private Placement). Each unit consists of one Class A ordinary share and one-quarter
of one redeemable warrant. Each whole warrant entitles the holder to purchase one Class A ordinary share at a price of $11.50 per share,
subject to adjustment.
Subsequently,
on February 12, 2026, in connection with the underwriters of the Companys initial public offering partially exercising their option
to purchase additional units, the Company completed the issuance and sale of 182,300 units, each consisting of one Class A ordinary share,
par value $0.0001 per share, and one-quarter of one redeemable warrant (the Option Units), at a public offering price of
$10.00 per Option Unit, generating gross proceeds of $1,823,000. Also on February 12, 2026, in connection with the sale of the Option
Units, the Company consummated the private placement of 457 units to the Sponsor and 1,823 units to the underwriters at a price of $10.00
per Private Placement Unit, and the private placement of 6,060 warrants to the Sponsor at a price of $0.75 per Private Placement Warrant,
generating gross proceeds of $27,345 (the Option Private Placement).
A
total of $101,823,000 of the net proceeds from the initial public offering (including the Option Units) and the Private Placement, was
placed in a trust account established for the benefit of the Companys public shareholders, with Continental Stock Transfer &
Trust Company acting as trustee. The funds in the trust account are invested in money market funds investing solely in U.S. government
treasury obligations and meeting certain conditions under Rule 2a-7 under the Investment Company Act or in an interest-bearing demand
deposit account.
**Business
Strategy**
****
Our
acquisition strategy is to identify an untapped opportunity and offer a public-ready business a facility through which to enter the public
markets, accessing capital markets and advancing its priorities. We believe that our management teams and directors experiences
in evaluating assets through investing and company building will position us to source the highest quality targets. Our selection process
will leverage the relationships of our management team with industry leaders, venture capitalists, private equity and hedge fund managers,
respected peers, and our network of investment banking executives, attorneys, and accountants. Together with this network of trusted
partners, we intend to capitalize the target business and create purposeful strategic initiatives in order to achieve attractive growth
and performance targets. Upon completion of the initial public offering, our management began the process of locating, identifying, pursuing
and reviewing potential target companies.
**Investment
Criteria**
****
Our
efforts to identify a prospective initial business combination target will not be limited to a particular industry, sector or geographic
region. While we may pursue an initial business combination opportunity in any industry or sector, we have identified the following criteria
for evaluating potential target businesses. Although we may decide to enter into our initial business combination with a target business
that does not meet the criteria described below, it is our intention to acquire companies that we believe:
| 
| 
| 
are sector
leaders in their product category or have the potential to be dominant competitors in their sectors; | |
| 
| 
| 
| |
| 
| 
| 
have experienced management
teams and corporate governance, reporting, and control systems ready to comply with the requirements of a public listing; | |
| 
| 
| 
| |
| 
| 
| 
have technological or brand
competitive advantage; | |
| 
| 
| 
| |
| 
| 
| 
have underexploited growth
opportunities which our team is positioned to help them achieve; and | |
| 
| 
| 
| |
| 
| 
| 
will offer attractive return
on investment for our shareholders. | |
| 2 | |
| | |
****
**Initial
Business Combination**
****
We
are not presently engaged in, and will not engage in, any substantive commercial business for an indefinite period of time following
the initial public offering. We intend to utilize cash derived from the proceeds of the initial public offering and the private securities,
as well as our equity, debt or a combination of these, in effecting a business combination which has not yet been identified. A business
combination may involve the acquisition of, or merger with, a company which does not need substantial additional capital but which desires
to establish a public trading market for its shares, while avoiding what it may deem to be adverse consequences of undertaking a public
offering itself. These include time delays, significant expense, loss of voting control and compliance with various federal and state
securities laws. In the alternative, we may seek to consummate a business combination with a company that may be financially unstable
or in its early stages of development or growth. While we may seek to effect simultaneous business combinations with more than one target
business, we will probably have the ability, as a result of our limited resources, to effect only a single business combination.
We
will either (1) seek shareholder approval of our initial business combination at a meeting called for such purpose at which shareholders
may seek to redeem all or a portion of their public shares, regardless of whether they vote for or against the proposed business combination,
or (2) provide our shareholders with the opportunity to sell their shares to us by means of a tender offer for an amount equal to their
pro rata share of the aggregate amount then on deposit in the trust account, including interest (which interest shall be net of permitted
withdrawals, if any), in each case subject to the limitations described herein. The decision as to whether we will seek shareholder approval
of our proposed business combination or allow shareholders to sell their shares to us in 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 otherwise require us to seek shareholder approval. Unlike other blank check companies which require shareholder votes and conduct
proxy solicitations in conjunction with their initial business combinations and related redemptions of public shares for cash upon consummation
of such initial business combinations even when a vote is not required by law, we will have the flexibility to avoid such shareholder
vote and allow our shareholders to sell their shares pursuant to the tender offer rules of the U.S. Securities and Exchange Commission
(the SEC). In that case, we will file tender offer documents with the SEC, which will contain substantially the same financial
and other information about the initial business combination as is required under the SECs proxy rules. If we seek shareholder
approval, we will complete our initial business combination only if we obtain the approval of an ordinary resolution under Cayman Islands
law and our amended and restated memorandum and articles of association.
We
have until 24 months from the closing of the initial public offering, or such earlier liquidation date as our board of directors may
approve, to consummate an initial business combination. If we are unable to consummate an initial business combination within such time
period, we will, as promptly as reasonably possible but not more than 10 business days thereafter, redeem 100% of the outstanding public
shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including any interest
earned on the funds held in the trust account and net of permitted withdrawals, and up to $100,000 of interest to pay dissolution expenses,
divided by the number of then issued and outstanding public shares, which redemption will completely extinguish the public shareholders
rights as shareholders (including the right to receive further liquidation distributions, if any), subject to applicable law and as further
described herein, and then seek to liquidate and dissolve. We expect the pro rata redemption price to be approximately $10.00 per Class
A ordinary share (regardless of whether or not the underwriters exercise their over-allotment option), without taking into account any
interest earned on such funds. However, we cannot assure our public 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.
| 3 | |
| | |
Our
initial business combination must occur with one or more target businesses that together have a fair market value of at least 80% of
the assets held in the trust account (excluding any deferred underwriting commissions and taxes payable on interest earned) at the time
of the agreement to enter into the initial business combination. The fair market value of the target or targets will be determined by
our board of directors based upon one or more standards generally accepted by the financial community (such as actual and potential sales,
earnings, cash flow and/or book value). Even though our board of directors will rely on generally accepted standards, our board of directors
will have discretion to select the standards employed. In addition, the application of the standards generally involves a substantial
degree of judgment. Accordingly, our shareholders will be relying on the business judgment of our board of directors in evaluating the
fair market value of the target or targets. The proxy solicitation materials or tender offer documents used by us in connection with
any proposed transaction will provide public shareholders with our analysis of the fair market value of the target business, as well
as the basis for our determinations. If our board of directors is not able independently to determine the fair market value of the target
business or businesses, we may, in our sole discretion, obtain an opinion from an independent investment banking firm, or another independent
entity that commonly renders valuation opinions on the type of target business we are seeking to acquire, with respect to the satisfaction
of such criteria. However, unless we consummate our initial business combination with an affiliated entity, our board of directors is
not required to obtain an opinion from an independent investment banking firm or another independent entity that the price we are paying
is fair to our shareholders from a financial point of view.
We
currently anticipate structuring a business combination to acquire 100% of the equity interests or assets of the target business or businesses.
We may, however, structure our initial business combination where we merge directly with the target business or where we acquire 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 of 1940, as amended (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 transaction. For example, we could pursue a transaction in which we issue a substantial
number of new shares in exchange for all of the outstanding capital stock of a target. In this case, we could acquire a 100% controlling
interest in the target however, as a result of the issuance of a substantial number of new shares, our shareholders immediately
prior to our initial business combination could own less than a majority of our outstanding 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 valued for purposes of the 80% fair market
value test, as described above.
****
**Potential
Additional Financing**
We
may obtain additional financing to complete our initial business combination, for example, 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 and equity-linked securities or the incurrence of indebtedness,
our public shareholders may suffer significant dilution and these 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. Further, as described above, due to the anti-dilution rights of
our founder shares, our public shareholders may incur material dilution. In addition, we may target businesses with enterprise values
that are greater than we could acquire with the net proceeds of the initial offering and the sale of the private securities, and, as
a result, if the cash portion of the purchase price exceeds the amount available from the trust account, net of amounts needed to satisfy
any redemptions by public shareholders, we may be required to seek additional financing to complete such proposed initial business combination.
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-linked securities or through loans, advances or other indebtedness in connection
with our initial business combination, including pursuant to forward purchase agreements or backstop agreements we may enter into following
consummation of the initial public offering. Subject to compliance with applicable securities laws, we would only complete such financing
simultaneously with the completion of our initial business combination. 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.
****
| 4 | |
| | |
****
**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. In this situation,
the owners of the target business would exchange their shares or other equity interests in the target business for our shares or for
a combination of our shares and cash, allowing us to tailor the consideration to the specific needs of the sellers. Although there are
various costs and obligations associated with being a public company, we believe target businesses will find this method a more certain
and cost effective method to becoming a public company than the typical initial public offering. In a typical initial public offering,
there are additional expenses incurred in marketing, road show and public reporting efforts that may not be present to the same extent
in connection with a business combination with us.
Furthermore,
once a proposed 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. Once public, we believe the target business would then have greater access to capital and
an additional means of providing management incentives consistent with shareholders interests. It can offer further benefits by
augmenting a companys profile among potential new customers and vendors and aid in attracting talented employees.
While
we believe that our structure and our management teams backgrounds will make us an attractive business partner, some potential
target businesses may have a negative view of us since we are a blank check company, without an operating history, and there is uncertainty
relating to our ability to obtain shareholder approval of our proposed initial business combination and retain sufficient funds in our
trust account in connection therewith.
We
are an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the JOBS Act).
We will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary
of the completion of the initial public offering, (b) in which we have total annual gross revenue of at least $1.235 billion, or (c)
in which we are deemed to be a large accelerated filer, which means the market value of our ordinary shares that is held by non-affiliates
equals or exceeds $700 million as of the end of that years second fiscal quarter, and (2) the date on which we have issued more
than $1.0 billion in non-convertible debt securities during the prior three-year period.
Additionally,
we are a smaller reporting company as defined in Rule 10(f)(1) of Regulation S-K. Smaller reporting companies may take
advantage of certain reduced disclosure obligations, including, among other things, providing only two years of audited financial statements.
We will remain a smaller reporting company until the last day of the fiscal year in which (1) the market value of our ordinary shares
held by non-affiliates equals or exceeds $250 million as of the end of that years second fiscal quarter, or (2) our annual revenues
equals or exceeds $100 million during such completed fiscal year and the market value of our ordinary shares held by non-affiliates equals
or exceeds $700 million as of the end of that years second fiscal quarter.
**Financial
Position**
With
funds available for a business combination initially in the amount of $101,823,000, we can offer a target business a variety of options
to facilitate a business combination and fund future expansion and growth of its business. Because we are able to consummate a business
combination using the cash proceeds in our trust account, debt or a combination of the foregoing, we have the flexibility to use an efficient
structure allowing us to tailor the consideration to be paid to the target business to address the needs of the parties. However, if
a business combination requires us to use substantially all of our cash to pay for the purchase price, we may need to arrange third-party
financing to help fund our business combination. Since we have no specific business combination under consideration, we have not taken
any steps to secure third-party financing. Accordingly, our flexibility in structuring a business combination may be subject to constraints
resulting from a need to finance such business combination.
| 5 | |
| | |
**Effecting
the Business Combination**
****
We
are not presently engaged in, and we will not engage in, any operations other than the pursuit of the business combination 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 sale of the private securities, our common and preferred equity (if any), new debt, or a combination
of these, as the consideration to be paid in effecting a business combination which has not yet been identified. A business combination
may involve the acquisition of, or merger with, a company which does not need substantial additional capital but which desires to establish
a public trading market for its shares, while avoiding what it may deem to be adverse consequences of undertaking a public offering itself.
These include time delays, significant expense, loss of voting control and compliance with various federal and state securities laws.
In the alternative, we may seek to consummate 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,
although we will not be permitted to effectuate our initial business combination with another blank check company or a similar company
with nominal operations.
We
have until 24 months from the closing of the initial public offering, or such earlier liquidation date as our board of directors may
approve, to consummate an initial business combination. If we are unable to consummate our initial business combination within the applicable
time period, we will, as promptly as reasonably possible but not more than 10 business days thereafter, redeem the public shares for
a pro rata portion of the funds held in the trust account and 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 the Cayman Islands law to provide for claims of creditors and the requirements of other applicable law.
****
**Sources
of Target Businesses**
While
we have not yet identified any initial business combination candidates, we believe based on our managements business knowledge
and past experience that there are numerous business combination candidates. We anticipate that target business candidates will be brought
to our attention from various unaffiliated sources, including investment bankers, venture capital funds, private equity funds, leveraged
buyout funds, management buyout funds and other members of the financial community. Target businesses may be brought to our attention
by such unaffiliated sources as a result of being solicited by us through calls or mailings. These sources may also introduce us to target
businesses in which they think we may be interested on an unsolicited basis, since many of these sources will have read our registration
statement and know what types of businesses we are targeting. Our officers and directors, as well as their affiliates, may also bring
to our attention target business candidates that they become aware of through their business contacts as a result of formal or informal
inquiries or discussions they may have, as well as attending trade shows or conventions. We may engage professional firms or other individuals
that specialize in business acquisitions or mergers in the future, in which event we may pay a finders fee, consulting fee or
other compensation to be determined in an arms length negotiation based on the terms of the transaction. In no event, however,
will our insiders or any of the members of our management team be paid any finders fee, consulting fee or other compensation prior
to, or for any services they render in order to effectuate, the consummation of our initial business combination (regardless of the type
of transaction that it is) other than as described herein. Our audit committee will review and approve all reimbursements and payments
made to our Sponsor, officers, directors or our and their respective affiliates, with any interested director abstaining from such review
and approval. We have no present intention to enter into a business combination with a target business that is affiliated with any of
our officers, directors, director nominees or insiders. However, we are not restricted from entering into any such transactions and may
do so if (1) such transaction is approved by a majority of our disinterested and independent directors (if we have any at that time)
and (2) we obtain an opinion from an independent investment banking firm that the business combination is fair to our unaffiliated shareholders
from a financial point of view.
****
**Selection
of a Target Business and Structuring of Our Initial Business Combination**
Subject
to our management teams fiduciary duties and the limitation that one or more target businesses have an aggregate fair market value
of at least 80% of the value of the trust account (excluding any deferred underwriting commissions and taxes payable on the income earned
on the trust account) at the time of the execution of a definitive agreement for our initial business combination, as described below
in more detail, our management will have virtually unrestricted flexibility in identifying and selecting a prospective target business.
Additionally, there is no limitation on our ability to raise funds privately or through loans in connection with our initial business
combination. We have not established any specific attributes or criteria (financial or otherwise) for prospective target businesses.
| 6 | |
| | |
To
the extent we effect our initial business combination with a financially unstable company or an entity in its early stage of development
or growth, including entities without established records of sales or earnings, we may be affected by numerous risks inherent in the
business and operations of financially unstable and early stage or potential emerging growth companies. The valuation of a financially
unstable company or early stage company can be more complicated than the calculation of a mature, stable company, and any valuation we
make on such a company would be based, in part, on its prospects and how successful we believe the business will be once the company
matures or is stabilized. Although our management will endeavor to evaluate the risks inherent in a particular target business, we may
not properly ascertain or assess all significant risk factors. In evaluating a prospective target business, our management may consider
a variety of factors, including one or more of the following:
| 
| 
| 
financial condition
and results of operations; | |
| 
| 
| 
| |
| 
| 
| 
growth potential; | |
| 
| 
| 
| |
| 
| 
| 
brand recognition and potential; | |
| 
| 
| 
| |
| 
| 
| 
return on equity or invested
capital; | |
| 
| 
| 
| |
| 
| 
| 
market capitalization or
enterprise value; | |
| 
| 
| 
| |
| 
| 
| 
experience and skill of
management and availability of additional personnel; | |
| 
| 
| 
| |
| 
| 
| 
capital requirements; | |
| 
| 
| 
| |
| 
| 
| 
competitive position; | |
| 
| 
| 
| |
| 
| 
| 
barriers to entry; | |
| 
| 
| 
| |
| 
| 
| 
stage of development of
the products, processes or services; | |
| 
| 
| 
| |
| 
| 
| 
existing distribution and
potential for expansion; | |
| 
| 
| 
| |
| 
| 
| 
degree of current or potential
market acceptance of the products, processes or services; | |
| 
| 
| 
| |
| 
| 
| 
proprietary aspects of
products and the extent of intellectual property or other protection for products or formulas; | |
| 
| 
| 
| |
| 
| 
| 
impact of regulation on
the business; | |
| 
| 
| 
| |
| 
| 
| 
regulatory environment
of the industry; | |
| 
| 
| 
| |
| 
| 
| 
costs
associated with effecting the business combination; | |
| 
| 
| 
| |
| 
| 
| 
industry leadership, sustainability
of market share and attractiveness of market industries in which a target business participates; and | |
| 
| 
| 
| |
| 
| 
| 
macro competitive dynamics
in the industry within which the company competes. | |
These
criteria are not intended to be exhaustive. Our management may not consider any of the above criteria in evaluating a prospective target
business. The retention of our officers and directors following the completion of any business combination will not be a material consideration
in our evaluation of a prospective target business.
Any
evaluation relating to the merits of a particular business combination will be based, to the extent relevant, on the above factors as
well as other considerations deemed relevant by our management in effecting a business combination consistent with our business objective.
In evaluating a prospective target business, we will conduct an extensive due diligence review which will encompass, among other things,
meetings with incumbent management and inspection of facilities, as well as review of financial and other information which is made available
to us. This due diligence review will be conducted either by our management or by unaffiliated third parties we may engage, although
we have no current intention to engage any such third parties.
| 7 | |
| | |
The
time and costs required to select and evaluate a target business and to structure and complete our initial business combination remain
to be determined. Any costs incurred with respect to the identification and evaluation of a prospective target business with which a
business combination is not ultimately completed will result in a loss to us and reduce the amount of capital available to otherwise
complete a business combination.
**Lack
of Business Diversification**
For
an indefinite period of time after consummation 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 consummating 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 | |
| 
| 
| 
| |
| 
| 
| 
result in our dependency
upon the performance of a single operating business or the development or market acceptance of a single or limited number of products,
processes or services. | |
**Limited
Ability to Evaluate the Target Business Management Team**
Although
we scrutinize the management of a prospective target business for, among other things, their ability to manage a company with securities
that are publicly traded, when evaluating the desirability of effecting our initial business combination, our assessment of the target
business management team may not prove to be correct. In addition, the future management team may not have the necessary skills,
qualifications or abilities to manage a public company. Furthermore, the future role of our officers and directors, if any, in the target
business following our initial business combination remains to be determined. While it is possible that some of our key personnel will
remain associated in senior management or advisory positions with us following our initial business combination, it is unlikely that
they will devote their full time efforts to our affairs subsequent to our initial business combination. Moreover, they would only be
able to remain with the company after the consummation of our initial business combination if they are able to negotiate employment or
consulting agreements in connection with the business combination. Such negotiations would take place simultaneously with the negotiation
of the business combination and could provide for them to receive compensation in the form of cash payments and/or our securities for
services they would render to the company after the consummation of the business combination. While the personal and financial interests
of our key personnel may influence their motivation in identifying and selecting a target business, their ability to remain with the
company after the consummation of our initial business combination will not be the determining factor in our decision as to whether or
not we will proceed with any potential business combination. Additionally, our officers and directors may not have significant experience
or knowledge relating to the operations of the particular target business. Following our initial business combination, we may seek to
recruit additional managers to supplement the incumbent management of the target business. We may not have the ability to recruit additional
managers, or that any such additional managers we do recruit will have the requisite skills, knowledge or experience necessary to enhance
the incumbent management.
**Shareholders
May Not Have the Ability to Approve an Initial Business Combination**
****
In
connection with any proposed business combination, we will either (1) seek shareholder approval of our initial business combination at
a meeting called for such purpose at which shareholders may seek to redeem their shares, regardless of whether they abstain, vote for
or against or vote at all with respect to the proposed business combination, or (2) provide our shareholders with the opportunity to
sell their shares to us by means of a tender offer for an amount equal to their pro rata share of the aggregate amount then on deposit
in the trust account, including interest (which interest shall be net of permitted withdrawals), in each case subject to the limitations
described herein. We will seek shareholder approval if it is required by applicable law or stock exchange listing requirement, provided,
that we may also decide to seek shareholder approval for business or other reasons.
| 8 | |
| | |
Under
NYSEs listing 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 ordinary shares then outstanding | |
| 
| 
| 
| |
| 
| 
| 
any of our directors, officers
or substantial shareholders (as defined by NYSE rules) has a 5% or greater interest (or such persons collectively have a 10% or greater
interest), directly or indirectly, in the target business or assets to be acquired and the present or potential issuance of ordinary
shares could result in an increase in our outstanding ordinary shares or voting power of 5% or more; | |
| 
| 
| 
| |
| 
| 
| 
the issuance or potential
issuance of ordinary shares will result in our undergoing a change of control. | |
The
Companies Act and Cayman Islands law do not currently require, and we are not aware of any other applicable law that will require, shareholder
approval of our initial business combination, save if the business combination is structured as a statutory merger or consolidation with
another company under the laws of the Cayman Islands which would require the approval of a special resolution.
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 law 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:
| 
| 
| 
the timing
of the proposed 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 | |
| 
| 
| 
| |
| 
| 
| 
the expected cost of holding
a shareholder vote | |
| 
| 
| 
| |
| 
| 
| 
the risk that our shareholders
would fail to approve the initial business combination | |
| 
| 
| 
| |
| 
| 
| 
other time and budget constraints
and | |
| 
| 
| 
| |
| 
| 
| 
potential additional legal
complexities of an initial business combination that would be time-consuming and burdensome to present to shareholders. | |
**Permitted
purchases and other transactions with respect to 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, initial shareholders, directors, officers, advisors or their affiliates
may purchase public shares or public warrants in privately-negotiated transactions or in the open market either prior to or following
the completion of our initial business combination. There is no limit on the number of shares or warrants our initial shareholders, directors,
officers, advisors or their affiliates may purchase in such transactions, subject to compliance with applicable law and NYSE rules. Additionally,
at any time at or prior to our initial business combination, subject to applicable securities laws (including with respect to material
non-public information), our Sponsor, directors, officers, advisors or any of their 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. 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. In the event our Sponsor, directors, officers, advisors or any
of their affiliates determine to undertake any such transactions, such transactions could have the effect of influencing the vote necessary
to approve such transaction. None of the funds held in the trust account will be used to purchase public shares or public warrants in
such transactions. They will be restricted from making any such purchases when they are in possession of any material non-public information
not disclosed to the seller or if such purchases are prohibited by Regulation M under the Securities Exchange Act of 1934, as amended
(the Exchange Act). Such a purchase may include a contractual acknowledgement 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. We
have adopted an insider trading policy which will require insiders to (1) refrain from purchasing securities during certain blackout
periods and when they are in possession of any material non-public information and (2) clear certain trades prior to execution. We cannot
currently determine whether our insiders will make such purchases pursuant to a Rule 10b5-1 plan, as it will be dependent upon several
factors, including but not limited to, the timing and size of such purchases. Depending on such circumstances, our insiders may either
make such purchases pursuant to a Rule 10b5-1 plan or determine that such a plan is not necessary.
| 9 | |
| | |
In
the event that our Sponsor, directors, officers, advisors or any of their affiliates purchase public shares in privately negotiated transactions
from public shareholders who have already elected to exercise their redemption rights or submitted a proxy to vote against our initial
business combination, such selling shareholders would be required to revoke their prior elections to redeem their shares and any proxy
to vote against our initial business combination. We do not currently anticipate that such purchases, if any, would constitute a tender
offer subject to the tender offer rules under the Exchange Act or a going-private transaction subject to the going-private rules under
the Exchange Act however, if the purchasers determine at the time of any such purchases that the purchases are subject to such
rules, the purchasers will be required to comply with such rules.
The
purpose of any such transaction could be to reduce the number of public warrants outstanding or vote such public warrants on any matters
submitted to the public warrant holders for approval in connection with our initial business combination or to 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. This may result in the completion of our initial
business combination that may not otherwise have been possible. Any such purchases will be reported pursuant to Section 13 and Section
16 of the Exchange Act 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.
In
addition, if such purchases are made, the public float of our securities and the number of beneficial holders of our securities
may be reduced, possibly making it difficult to maintain or obtain the quotation, listing or trading of our securities on a national
securities exchange.
Our
Sponsor, officers, directors and/or any of their affiliates anticipate that they may identify the shareholders with whom our Sponsor,
officers, directors or their affiliates may pursue privately-negotiated purchases by either the shareholders contacting us directly or
by our receipt of redemption requests tendered by shareholders following our mailing of proxy materials in connection with our initial
business combination. To the extent that our Sponsor, officers, directors, advisors or their affiliates enter into a private purchase,
they would identify and contact only potential selling 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. Such persons would select the shareholders from whom to acquire shares based
on the number of shares available, the negotiated price per share and such other factors as any such person may deem relevant at the
time of purchase. The price per share paid in any such transaction may be different than the amount per share a public shareholder would
receive if it elected to redeem its shares in connection with our initial business combination. Our Sponsor, officers, directors, advisors
or their affiliates will only purchase shares if such purchases comply with Regulation M under the Exchange Act and the other federal
securities laws.
Any
purchases by our Sponsor, officers, directors and/or their respective affiliates who are affiliated purchasers under Rule 10b-18 under
the Exchange Act will only be made to the extent such purchases are able to be made in compliance with Rule 10b-18, which is a safe harbor
from liability for manipulation under Section 9(a)(2) and Rule 10b-5 of the Exchange Act. Rule 10b-18 has certain technical requirements
that must be complied with in order for the safe harbor to be available to the purchaser. Our Sponsor, officers, directors and/or their
respective affiliates will not make purchases of shares if the purchases would violate Section 9(a)(2) or Rule 10b-5 of the Exchange
Act.
| 10 | |
| | |
Additionally,
in the event our Sponsor, initial shareholders, directors, officers, advisors and their affiliates were to purchase public shares or
warrants from public shareholders, such purchases would be structured in compliance with the requirements of Rule 14e-5 under the Exchange
Act 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, initial
shareholders, directors, officers, advisors and their affiliates may purchase public shares or warrants from public shareholders
outside the redemption process, along with the purpose of such purchases | |
| 
| 
| 
| |
| 
| 
| 
if our Sponsor, initial
shareholders, directors, officers, advisors and their 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, initial shareholders, directors, officers, advisors and their affiliates would not be voted in favor of approving the business
combination transaction | |
| 
| 
| 
| |
| 
| 
| 
our Sponsor, initial shareholders,
directors, officers, advisors and their 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
Form 8-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, initial shareholders, directors, officers, advisors and their affiliates,
along with the purchase price | |
| 
| 
| 
| |
| 
| 
| 
the purpose of the purchases
by our Sponsor, initial shareholders, directors, officers, advisors and their affiliates | |
| 
| 
| 
| |
| 
| 
| 
the impact, if any, of
the purchases by our Sponsor, initial shareholders, directors, officers, advisors and their affiliates on the likelihood that the
business combination transaction will be approved | |
| 
| 
| 
| |
| 
| 
| 
the identities of our security
holders who sold to our Sponsor, initial shareholders, directors, officers, advisors and their 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, initial shareholders, directors,
officers, advisors and their affiliates and | |
| 
| 
| 
| |
| 
| 
| 
the number of our securities
for which we have received redemption requests pursuant to our redemption offer. | |
****
**Redemption
rights for public shareholders upon completion of our initial business combination**
We
will provide our public shareholders with the opportunity to redeem, regardless of whether they abstain, vote for, or vote against our
initial business combination, all or a portion of their public shares upon the completion of our initial business combination at a per-share
price, payable in cash, equal to the aggregate amount then on deposit in the trust account as of two business days prior to the consummation
of the initial business combination, including interest (which interest shall be net of permitted withdrawals) divided by the number
of then issued and outstanding public shares, subject to the limitations described herein. The amount in the trust account is anticipated
to be approximately $10.00 per public share. The per-share amount we will distribute to public shareholders 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, placement shares and any public shares they may hold in connection with the completion of our initial business combination.
However, our Sponsor, officers and directors will be entitled to redemption rights with respect to any public shares held by them if
we fail to consummate a business combination or liquidate within the completion window.
****
| 11 | |
| | |
****
**Manner
of Conducting Redemptions**
We
will provide our public shareholders with the opportunity to redeem, regardless of whether they abstain, vote for, or vote against our
initial business combination, all or a portion of their Class A 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) 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 the law or stock exchange listing requirements. 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
memorandum and articles of association would require shareholder approval. So long as we maintain a listing for our securities on NYSE
American, we will be required to comply with the NYSEs shareholder approval rules. We currently intend to conduct redemptions
in connection with a shareholder vote unless shareholder approval is not required by applicable law or stock exchange listing requirements
and we choose to conduct redemptions pursuant to the tender offer rules of the SEC for business or other legal reasons.
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, pursuant
to our amended and restated memorandum and articles of association:
| 
| 
| 
conduct the
redemptions pursuant to Rule 13e-4 and Regulation 14E of the Exchange Act, 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 Regulation 14A of the Exchange Act, which regulates
the solicitation of proxies. | |
Upon
the public announcement of our initial business combination, we or our Sponsor will terminate any plan established in accordance with
Rule 10b5-1 to purchase our Class A ordinary shares in the open market if we elect to redeem our public shares through a tender offer,
to comply with Rule 14e-5 under the Exchange Act.
In
the event we conduct redemptions pursuant to the tender offer rules, our offer to redeem will remain open for at least 20 business days,
in accordance with Rule 14e-1(a) under the Exchange Act, 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.
If,
however, shareholder approval of the transaction is required by law or stock exchange listing requirement, or we decide to obtain shareholder
approval for business or other legal reasons, we will, pursuant to our amended and restated memorandum and articles of association:
| 
| 
| 
conduct the
redemptions in conjunction with a proxy solicitation pursuant to Regulation 14A of the Exchange Act, which regulates the solicitation
of proxies, and not pursuant to the tender offer rules and | |
| 
| 
| 
| |
| 
| 
| 
file proxy materials with
the SEC. | |
We
expect that a final proxy statement would be mailed to public shareholders at least 20 days prior to the shareholder vote. However, we
expect that a draft proxy statement would be made available to such shareholders well in advance of such time, providing additional notice
of redemption if we conduct redemptions in conjunction with a proxy solicitation. Although we are not required to do so, we currently
intend to comply with the substantive and procedural requirements of Regulation 14A in connection with any shareholder vote even if we
are not able to maintain our NYSE listing or Exchange Act registration.
| 12 | |
| | |
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 obtain the approval of an ordinary resolution
under Cayman Islands law and our amended and restated memorandum and articles of association, being 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 a general meeting of the company, or a resolution approved in writing by all of the holders of the issued shares entitled to vote
on such matter. 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 a majority of at least 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 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. A quorum for such meeting will be present if the holders of at least one third of the issued and outstanding
shares entitled to vote at the meeting are represented in person or by proxy. In such case, pursuant to the terms of a letter agreement
entered into with us, our Sponsor, officers and directors have agreed (and their permitted transferees will agree) to vote any founder
shares and/or private placement 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 Rule
14e-5 under the Exchange Act, which would not be voted in favor of approving the business combination transaction), in favor of our initial
business combination. We expect that at the time of any shareholder vote relating to our initial business combination, our Sponsor and
its permitted transferees will own at least 25% of our issued and outstanding ordinary shares entitled to vote thereon. Each public shareholder
may elect to redeem their public shares without voting and, if they do vote, irrespective of whether they vote for or against the proposed
transaction. In addition, our initial shareholders, directors and officers have entered into a letter agreement with us, pursuant to
which they have agreed to waive their redemption rights with respect to any founder shares and public shares held by them in connection
with the completion of a business combination.
Redemptions
of our public shares may be subject to a net tangible asset test or cash requirement pursuant to an agreement relating to our initial
business combination. For example, the proposed business combination may require: (1) cash consideration to be paid to the target or
its owners (2) cash to be transferred to the target for working capital or other general corporate purposes or (3) the retention
of cash to satisfy other conditions in accordance with the terms of the proposed business combination. In the event the aggregate cash
consideration we would be required to pay for all public shares that are validly submitted for redemption plus any amount required to
satisfy cash conditions pursuant to the terms of the proposed business combination exceed the aggregate amount of cash available to us,
we will not complete the business combination or redeem any shares, and all ordinary shares submitted for redemption will be returned
to the holders thereof. We may, however, raise funds through the issuance of equity-linked securities or through loans, advances or other
indebtedness in connection with our initial business combination, including pursuant to forward purchase agreements or backstop arrangements,
in order to, among other reasons, satisfy such net tangible assets or minimum cash requirements.
****
| 13 | |
| | |
****
**Limitation
on redemption upon completion of our initial business combination if we seek shareholder approval**
Notwithstanding
the foregoing, 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 memorandum and articles of association
will provide that a public shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder
is acting in concert or as a group (as defined under Section 13 of the Exchange Act), will be restricted from exercising
redemption rights with respect to more than an aggregate of 20% of the shares sold in our initial public offering, without prior consent,
which we refer to as the Excess Shares. We believe this restriction will discourage shareholders from accumulating large
blocks of 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 Sponsor or its affiliates to purchase their shares at a significant premium to the
then-current market price or on other undesirable terms. Absent this provision, a public shareholder holding more than an aggregate of
15% of the shares sold in the initial public offering could threaten to exercise its redemption rights if such holders shares
are not purchased by us or our Sponsor or its affiliates at a premium to the then-current market price or on other undesirable terms.
By limiting our shareholders ability to redeem no more than 15% of the shares sold in the initial public offering, 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 would not be restricting our shareholders ability to vote all of their
shares (including Excess Shares) for or against our initial business combination. Our Sponsor, officers and directors have, pursuant
to a letter agreement entered into with us, waived their right to have any founder shares, private placement shares or public shares
held by them redeemed in connection with our initial business combination. Unless any of our other affiliates acquires founder shares
through a permitted transfer from an initial shareholder, and thereby becomes subject to the letter agreement, no such affiliate is subject
to this waiver. However, to the extent any such affiliate acquired public shares in the initial public offering or thereafter through
open market purchases, it would be a public shareholder and restricted from seeking redemption rights with respect to any Excess Shares.
****
**Tendering
share certificates in connection with a tender offer or redemption rights**
We
may require our public shareholders seeking to exercise their redemption rights, whether they are record holders or hold their shares
in street name, to either tender their share certificates (if any) to our transfer agent prior to the date set forth in
the tender offer documents, or up to two business days prior to the vote on the proposal to approve the business combination in the event
we distribute proxy materials, or to deliver their shares to the transfer agent electronically using The Depository Trust Companys
Deposit/Withdrawal At Custodian (DWAC) System, rather than simply voting against the initial business combination. The
tender offer or proxy materials, 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 from the time we send out our tender offer materials until the close of the tender offer period, or up to two days prior to
the vote on the business combination if we distribute proxy materials, as applicable, to tender its shares if it wishes to seek to exercise
its redemption rights. Pursuant to the tender offer rules, the tender offer period will be not less than 20 business days and, in the
case of a shareholder vote, a final proxy statement would be mailed to public shareholders at least 20 days prior to the shareholder
vote. However, we expect that a draft proxy statement would be made available to such shareholders well in advance of such time, providing
additional notice of redemption if we conduct redemptions in conjunction with a proxy solicitation. Given the relatively short exercise
period, it is advisable for shareholders to use electronic delivery of their public shares.
There
is a nominal cost associated with the above-referenced tendering process and the act of certificating the shares or delivering them through
the DWAC System. The transfer agent will typically charge the tendering broker $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 tender their shares. The need to deliver shares is a requirement of exercising redemption rights regardless
of the timing of when such delivery must be effectuated.
****
In
order to perfect redemption rights in connection with their business combinations, many blank check companies would distribute proxy
materials for the shareholders vote on an initial business combination, and a holder could simply vote against a proposed business
combination and check a box on the proxy card indicating such holder was seeking to exercise his or her redemption rights. After the
business combination was approved, the company would contact such shareholder to arrange for him or her to deliver his or her certificate
to verify ownership. As a result, the shareholder then had an option window after the completion of the business combination
during which he or she could monitor the price of the companys shares in the market. If the price rose above the redemption price,
he or she could sell his or her shares in the open market before actually delivering his or her shares to the company for cancellation.
As a result, the redemption rights, to which shareholders were aware they needed to commit before the general meeting, would become option
rights surviving past the completion of the business combination until the redeeming holder delivered its certificate. The requirement
for physical or electronic delivery prior to the general meeting ensures that a redeeming holders election to redeem is irrevocable
once the business combination is approved.
| 14 | |
| | |
Any
request to redeem such shares, once made, may be withdrawn at any time up to the date set forth in the tender offer materials or the
date of the general meeting set forth in our proxy materials, 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 up to 24 months from the closing of the initial public offering.
****
**Liquidation
if No Business Combination**
Our
amended and restated memorandum and articles of association provides that we have only up to 24 months from the closing of the
initial public offering or until such earlier liquidation date as our board of directors may approve to complete an initial business
combination. If we have not completed an initial business combination by such date, we will (i) cease all operations except for the
purpose of winding up, liquidation and subsequent dissolution pursuant to the terms of our amended and restated memorandum and
articles of association (ii) as promptly as reasonably possible but not more than ten (10) business days thereafter, redeem 100% of
the outstanding 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 (which interest shall be net of permitted withdrawals, and
up to $100,000 of interest to pay dissolution expenses), divided by the number of then issued and outstanding public shares, which
redemption will completely extinguish public shareholders rights as shareholders (including the right to receive further
liquidation 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
the cases of (ii) and (iii) above) to our obligations under the Cayman Islands laws to provide for claims of creditors and the
requirements of other applicable law.
Our
Sponsor, executive officers and directors have agreed pursuant to a written letter agreement with us that they will not propose any amendment
to our amended and restated memorandum and articles of association that would stop our public shareholders from converting, redeeming
or selling their public shares to us in connection with a business combination in a manner that would affect 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 a business combination within 24 months from the closing of the initial public offering or with respect to any other
material provision relating to shareholders rights or pre-initial business 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-share price,
payable in cash, equal to the aggregate amount then on deposit in the trust account, net of permitted withdrawals, divided by the number
of then issued and outstanding public shares. This redemption right shall apply in the event of the approval of any such amendment, whether
proposed by our Sponsor, any executive officer, director or director nominee, or any other person.
We
are required to use our reasonable best efforts to have all third parties and any prospective target businesses enter into agreements
with us waiving any right, title, interest or claim of any kind they may have in or to any monies held in the trust account. As a result,
the claims that could be made against us will be limited, thereby lessening the likelihood that any claim would result in any liability
extending to the trust. We therefore believe that any necessary provision for creditors will be reduced and should not have a significant
impact on our ability to distribute the funds in the trust account (net of permitted withdrawals) to our public shareholders. Nevertheless,
we cannot assure you of this fact as there is no guarantee that vendors, service providers and prospective target businesses will execute
such agreements. If any third party refuses to execute an agreement waiving such claims to the monies held in the trust account, our
management will perform an analysis of the alternatives available to it and will only enter into an agreement with a third party that
has not executed a waiver if management believes that such third partys engagement would be significantly more beneficial to us
than any alternative. 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. Our underwriters and auditor are the only third parties we are currently aware of that may not execute a waiver. Nor is there
any guarantee that, even if they execute such agreements with us, they will not seek recourse against the trust account.
| 15 | |
| | |
We
anticipate notifying the trustee of the trust account to begin liquidating such assets promptly after such date and anticipate it will
take no more than ten (10) business days to effectuate such distribution. Our initial shareholders have waived their rights to participate
in any liquidation distribution with respect to the founder shares and private placement shares. There will be no distribution from the
trust account with respect to our warrants, which will expire worthless. We will pay the costs of any subsequent liquidation from our
remaining assets outside of the trust account and the interest earned on the funds held in the trust account that we are permitted to
withdraw to pay such expenses.
If
we are unable to complete an initial business combination and expend all of the net proceeds of the initial public offering, other than
the proceeds deposited in the trust account, and without taking into account interest, if any, earned on the trust account, the initial
per-share redemption price would be $10.00. The proceeds deposited in the trust account could, however, become subject to claims of our
creditors that are in preference to the claims of public shareholders.
Our
public shareholders shall be entitled to receive funds from the trust account only in the event of our failure to complete a business
combination within the required time period or if the shareholders seek to have us redeem or purchase their respective shares upon a
business combination which is actually completed by us or upon certain amendments to our charter documents as described elsewhere herein.
In no other circumstances shall a shareholder have any right or interest of any kind to or in the trust account.
Our
initial shareholders will not participate in any redemption distribution from our trust account with respect to their founder shares
and private placement shares. Additionally, any loans made by our officers, directors, Sponsors or their affiliates for working capital
needs will be forgiven and not repaid if we are unable to complete an initial business combination.
If
we are forced to file a bankruptcy case or an involuntary bankruptcy case is filed against us which is not dismissed, the proceeds held
in the trust account could be subject to applicable bankruptcy 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 make any assurance of the amount we will be able to return to our public shareholders.
If
we are forced to file a bankruptcy case or an involuntary bankruptcy case is filed against us which is not dismissed, any distributions
received by shareholders could be viewed under applicable debtor/creditor and/or bankruptcy laws as either a preferential transfer
or a fraudulent conveyance. As a result, a bankruptcy court could seek to recover all amounts received by our shareholders.
Furthermore, because we intend to distribute the proceeds held in the trust account to our public shareholders promptly after the completion
window ends, this may be viewed or interpreted as giving preference to our public shareholders over any potential creditors with respect
to access to or distributions from our assets. Furthermore, our board of directors may be viewed as having breached their fiduciary duties
to 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 you that claims will not be
brought against us for these reasons.
****
**Competition**
In
identifying, evaluating and selecting a target business, we may encounter intense competition from other entities having a business objective
similar to ours. Many of these entities are well established and have extensive experience identifying and effecting business combinations
directly or through affiliates. Many of these competitors possess greater technical, human and other resources than us and our financial
resources will be relatively limited when contrasted with those of many of these competitors. Although we believe there may be numerous
potential target businesses that we could acquire with the net proceeds of the initial public offering, our ability to compete in acquiring
certain sizable target businesses may be limited by our available financial resources.
| 16 | |
| | |
The
following also may not be viewed favorably by certain target businesses:
| 
| 
| 
our obligation
to seek shareholder approval of a business combination or engage in a tender offer may delay the completion of a transaction | |
| 
| 
| 
| |
| 
| 
| 
our obligation to convert
or repurchase Class A ordinary shares held by our public shareholders may reduce the resources available to us for a business combination
and | |
| 
| 
| 
| |
| 
| 
| 
our outstanding warrants
and unit purchase options, and the potential future dilution they represent. | |
Any
of these factors may place us at a competitive disadvantage in successfully negotiating a business combination. Our management believes,
however, that our status as a public entity and potential access to the United States public equity markets may give us a competitive
advantage over privately held entities having a similar business objective as ours in acquiring a target business with significant growth
potential on favorable terms.
If
we succeed in effecting a business combination, there will be, in all likelihood, intense competition from competitors of the target
business. We cannot assure our shareholders that, subsequent to a business combination, we will have the resources or ability to compete
effectively.
**Employees**
We
have one executive officer, Paul Packer, who serves as our chief executive officer and chief financial officer. Mr. Packer is not obligated
to devote any specific number of hours to our matters and intends to devote only as much time as he deems necessary to our affairs. The
amount of time he devotes in any time period varies based on the stage of the business combination process the company is in. Accordingly,
once management locates a suitable target business to acquire, he will spend more time investigating such target business and negotiating
and processing the business combination (and consequently spend more time on our affairs) than he would prior to locating a suitable
target business. We presently expect our executive officer to devote such amount of time as he reasonably believes is necessary for our
business (which could range from only a few hours a week while we are trying to locate a potential target business to a majority of his
time as we move into serious negotiations with a target business for a business combination). We do not intend to have any full-time
employees prior to the consummation of a business combination.
****
**Periodic
Reporting and Audited Financial Statements**
****
We
have registered our units, Class A ordinary shares and public warrants under the Exchange Act 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 Exchange
Act, our annual reports, including this report, contain financial statements audited and reported on by our independent registered public
auditors.
In
connection with the business combination, we will provide our shareholders with audited financial statements of the prospective target
business as part of the proxy solicitation materials or tender offer materials sent to shareholders to assist them in assessing the target
business. These financial statements may be required to be prepared in accordance with, or be reconciled to, U.S. GAAP, or IFRS, depending
on the circumstances and the historical financial statements may be required to be audited in accordance with the PCAOB. These financial
statement requirements may limit the pool of potential target businesses we may acquire 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. While this may limit the pool of potential acquisition candidates, we do not believe that this limitation
will be material.
We
will be required to evaluate our internal control procedures for the fiscal year ending December 31, 2026, as required by the Sarbanes-Oxley
Act of 2002 (the Sarbanes-Oxley Act). Only in the event we are deemed to be a large accelerated filer or an accelerated
filer will we be required to have our internal control procedures audited. A target company may not be in compliance with the provisions
of the Sarbanes-Oxley Act regarding adequacy of their internal controls. The development of the internal controls of any such entity
to achieve compliance with the Sarbanes-Oxley Act may increase the time and costs necessary to complete any such acquisition.
We
are an emerging growth company, as defined in Section 2(a) of the Securities Act of 1933, as amended (the Securities
Act), as modified by the 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 Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations
regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a non-binding
advisory 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, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended
transition period provided in Section 7(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 take advantage of the benefits of this extended transition period.
We
will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following January 30, 2031, (b) in
which we have total annual gross revenue of at least $1.235 billion, or (c) in which we are deemed to be a large accelerated filer, which
means the market value of our ordinary shares that is held by non-affiliates equals or exceeds $700 million as of the end of that years
second fiscal quarter, and (2) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the
prior three-year period. References herein to emerging growth company shall have the meaning associated with it in the
JOBS Act.
| 17 | |
| | |
Item
1A. Risk Factors
*An
investment in our securities involves a high degree of risk. Our public shareholders should consider carefully all of the risks described
below, together with the other information contained in this Annual Report, before making a decision to invest in our securities. If
any of the following events occur, our business, financial condition and operating results may be materially adversely affected. In that
event, the trading price of our securities could decline, and our public shareholders could lose all or part of their investment.*
**
Risks
Relating to Our Search for, and Consummation of or Inability to Consummate, a Business Combination
Our
public shareholders may not be afforded an opportunity to vote on our proposed initial business combination, which means we may complete
our initial business combination even though a majority of our public shareholders do not support such a combination.
We
may not hold a shareholder vote to approve our initial business combination unless the business combination would require shareholder
approval under applicable Cayman Islands law or the rules of NYSE or if we decide to hold a shareholder vote for business or other reasons.
Examples of transactions that would not ordinarily require shareholder approval include asset acquisitions and share purchases, while
transactions such as a statutory merger or consolidation with our company or transactions where we issue more than 20% of our outstanding
shares would require shareholder approval. For instance, the NYSE rules currently allow us to engage in a tender offer in lieu of a general
meeting but would still require us to obtain shareholder approval if we were seeking to issue more than 20% of our outstanding shares
to a target business as consideration in any business combination. Therefore, if we were structuring a business combination that required
us to issue more than 20% of our outstanding shares, we would seek shareholder approval of such business combination. Except as required
by law or NYSE rules, the decision as to whether we will seek shareholder approval of a proposed business combination or will allow shareholders
to sell their shares to us in 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 otherwise require us to seek shareholder approval.
Accordingly, we may consummate our initial business combination even if holders of a majority of the issued and outstanding ordinary
shares do not approve of the business combination we consummate.
**If
we seek shareholder approval of our initial business combination, our Sponsor, officers and directors have agreed to vote in favor of
such initial business combination, regardless of how our public shareholders vote.**
Our
Sponsor, officers and directors have agreed (and their permitted transferees will agree), pursuant to the terms of a letter
agreement entered into with us, to vote any founder shares and/or private placement shares held by them, as well as any public
shares purchased during or after the initial public offering (aside from shares they may purchase in compliance with the
requirements of Rule 14e-5 under the Exchange Act, which would not be voted in favor of approving the business combination
transaction), in favor of our initial business combination. We expect that our Sponsor and its permitted transferees will own
approximately 25% of our issued and outstanding ordinary shares at the time of any such shareholder vote. As a result, in addition
to the founder shares held by our Sponsor and directors and the private placement shares held by our Sponsor and the underwriters, we would need only
3,255,461, or approximately 32.0%, of the 10,182,300 public shares sold in the initial public offering to be voted in favor of an
ordinary resolution approving the transaction (assuming all outstanding shares are voted and the parties to the letter agreement do
not acquire any public shares). Assuming that only the holders of one-third of our issued and outstanding ordinary shares,
representing a quorum under our amended and restated memorandum and articles of association, attend and vote their shares at a
general meeting of the company, we will not need any public shares in addition to our founder shares and placement shares to be
voted in favor of an initial business combination in order to approve an initial business combination. Accordingly, if we seek
shareholder approval of our initial business combination, it is more likely that the necessary shareholder approval will be received
than would be the case if such persons agreed to vote their founder shares in accordance with the majority of the votes cast by our
public shareholders.
| 18 | |
| | |
Our
shareholders only opportunity to affect the investment decision regarding a potential business combination may be limited to the
exercise of their right to redeem their shares from us for cash.
At
the time of public shareholders investment in us, they will not be provided with an opportunity to evaluate the specific merits
or risks of any target businesses. Since our board of directors may complete a business combination without seeking shareholder approval,
public shareholders may not have the right or opportunity to vote on the business combination, unless we seek such shareholder approval.
Accordingly, our public shareholders only opportunity to affect the investment decision regarding a potential business combination
may be limited to exercising their redemption rights within the period of time (which will be at least 20 business days) set forth in
our tender offer documents mailed to our public shareholders in which we describe our initial business combination. The amount of the
deferred underwriting commissions payable to the underwriters will not be adjusted for any shares that are redeemed in connection with
an initial business combination. The per-share amount we will distribute to shareholders who properly exercise their redemption rights
will not be reduced by the deferred underwriting commission and after such redemptions and the per-share value of shares held by non-redeeming
shareholders may reflect our obligation to pay the deferred underwriting commissions.
**The
ability of our public shareholders to redeem their 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.**
We
may seek to enter into a business combination transaction agreement with a prospective target that requires as a closing condition that
we have a minimum net worth or a certain amount of cash. If too many public shareholders exercise their redemption rights, we would not
be able to meet such closing condition and, as a result, would not be able to proceed with the business combination. Consequently, if
accepting all properly submitted redemption requests would cause our net worth or minimum cash to be less than required by the prospective
target either immediately prior to or upon completion of our initial business combination, we may determine not to proceed with such
redemption and the related business combination and may instead search for an alternate business combination, or we may raise funds through
the issuance of equity-linked securities or through loans, advances or other indebtedness in connection with our initial business combination,
including pursuant to forward purchase agreements or backstop arrangements we may enter into following consummation of the initial public
offering, in order to, among other reasons, satisfy such net worth or minimum cash requirements. Prospective targets will be aware of
these risks and, thus, may be reluctant to enter into a business combination transaction with us.
**The
ability of our public shareholders to exercise redemption rights with respect to a large number of our shares may not allow us to complete
the most desirable business combination or optimize our capital structure.**
At
the time we enter into an agreement for our initial business combination, we will not know how many shareholders may exercise their redemption
rights, and therefore we will need to structure the transaction based on our expectations as to the number of shares that will be submitted
for redemption. If our initial business combination agreement requires us to use a portion of the cash in the trust account to pay the
purchase price, or requires us to have a minimum amount of cash at closing, we will need to reserve a portion of the cash in the trust
account to meet such requirements, or arrange for third-party financing. In addition, if a larger number of shares are submitted for
redemption than we initially expected, we may need to restructure the transaction to reserve a greater portion of the cash in the trust
account or arrange for third-party financing. Raising additional third-party financing may involve dilutive equity issuances or the incurrence
of indebtedness at higher than desirable levels. Furthermore, this dilution would increase to the extent that the anti-dilution provisions
of the Class B ordinary shares result in the issuance of Class A ordinary shares on a greater than one-to-one basis upon conversion of
the Class B ordinary shares at the time of the initial business combination. The above considerations may limit our ability to complete
the most desirable business combination available to us or optimize our capital structure.
**The
ability of our public shareholders to exercise redemption rights with respect to a large number of our 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 shares.**
If
our initial business combination agreement requires us to use a portion of the cash in the trust account to pay the purchase price, or
requires us to have a minimum amount of cash at closing, the probability that our initial business combination would be unsuccessful
is increased. If our initial business combination is unsuccessful, our public shareholders would not receive their pro rata portion of
the funds in the trust account until we liquidate the trust account. If public shareholders are in need of immediate liquidity, they
could attempt to sell their shares in the open market however, at such time our shares may trade at a discount to the pro rata
amount per share in the trust account. In either situation, our public shareholders may suffer a material loss on their investment or
lose the benefit of funds expected in connection with their exercise of redemption rights until we liquidate or they are able to sell
their shares in the open market.
****
| 19 | |
| | |
****
**The
requirement that we complete our initial business combination within the prescribed time frame may give potential target businesses leverage
over us in negotiating a business combination and may decrease our ability to conduct due diligence on potential business combination
targets as we approach our dissolution deadline, which could undermine our ability to complete our initial business combination on terms
that would produce value for our shareholders.**
Any
potential target business with which we enter into negotiations concerning a business combination will be aware that we must complete
our initial business combination within 24 months from the closing of the initial public offering. Consequently, such target business
may obtain leverage over us in negotiating a business combination, knowing that if we do not complete our initial business combination
with that particular target business, we may be unable to complete our initial business combination with any target business. This risk
will increase as we get closer to the end of the prescribed time frame. In addition, we may have limited time to conduct due diligence
and may enter into our initial business combination on terms that we would have rejected upon a more comprehensive investigation.
**If
the net proceeds of the initial public offering and the sale of the private securities not being held in the trust account are insufficient,
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, to pay our taxes and to complete our initial business
combination.**
Of
the net proceeds of the initial public offering and the sale of the private securities, only approximately $2,250,000 is available to
us initially outside the trust account to fund our working capital requirements. If we are required to seek additional capital, we will
need to borrow funds from our Sponsor, members of our management team or any of their affiliates to operate or may be forced to liquidate.
Neither our Sponsor, members of our management team nor any of their affiliates is under any obligation to advance funds to us in such
circumstances. Any such advances would be repaid only from funds held outside the trust account or from funds released to us upon completion
of our initial business combination. 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 cease operations and liquidate the trust account. In such case, our public shareholders may
only receive $10.00 per share, and our warrants will expire worthless. In certain circumstances, our public shareholders may receive
less than $10.00 per share on the redemption of their shares.
**We
may not be able to complete our initial business combination within the prescribed time frame, in which case we would cease all operations
except for the purpose of winding up and we would redeem our public shares and liquidate, in which case our public shareholders may only
receive $10.00 per share, or less than such amount in certain circumstances, and our warrants will expire worthless.**
Our
amended and restated memorandum and articles of association provide that we must complete our initial business combination within 24
months from the closing of the initial public offering or before such earlier liquidation date as our board of directors may approve. We
may not be able to find a suitable target business and complete our initial business combination within such time period. Our ability
to complete our initial business combination may be negatively impacted by general market conditions, volatility in the capital and debt
markets and the other risks described herein. For example, geopolitical instability emanating from the ongoing conflict between Russia
and the Ukraine as well as tensions in the Middle East could limit our ability to complete our initial business combination, including
as a result of increased market volatility, decreased market liquidity and third-party financing being unavailable on terms acceptable
to us or at all. Additionally, geopolitical instability may negatively impact businesses we may seek to acquire.
If
we have not completed our initial business combination within such time period, we will: (1) cease all operations except for the purpose
of winding up (2) as promptly as reasonably possible but not more than 10 business days thereafter (and subject to lawfully available
funds therefor), redeem the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the
trust account, including interest (which interest shall be net of permitted withdrawals, and up to $100,000 of interest to pay dissolution
expenses), divided by the number of then issued and 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
(3) 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. In such case, our public shareholders may receive only $10.00 per share, or less than $10.00
per share, on the redemption of their shares, and our warrants will expire worthless.
| 20 | |
| | |
If
we are unable to complete an initial business combination within the 24-month period, we may seek an amendment to our amended and restated
memorandum and articles of association to extend the period of time we have to complete an initial business combination beyond 24 months.
Amending our memorandum and articles of association will require a special resolution of our shareholders as a matter of Cayman Islands
law and our amended and restated memorandum and articles of association. If we seek shareholder approval to extend the initial 24 month
period, in which to complete an initial business combination to a later date, we will offer our public shareholders the right to have
their public ordinary shares redeemed for a pro rata share of the aggregate amount then on deposit in the trust account, as described
in greater detail in this Annual Report.
**If
we seek shareholder approval of our initial business combination, our Sponsor, directors, executive officers, advisors and their affiliates
may elect to purchase shares or warrants from public shareholders, which may influence a vote on a proposed business combination and
reduce the public float of our ordinary shares or public warrants.**
At
any time prior to the general meeting to approve our initial business combination, during a period when they are not then aware of any
material non-public information regarding the company or its securities, the Sponsor, directors, executive officers, advisors or any
of their affiliates, may, in privately negotiated transactions or in the open market, (i) purchase shares from institutional and other
investors who vote, or indicate an intention to vote, against the business combination, (ii) execute agreements to purchase such shares
from institutional and other investors in the future, and/or (iii) enter into transactions with institutional and other investors to
provide such persons with incentives to acquire Class A ordinary shares. Such an agreement may include a contractual acknowledgement
that such shareholder, although still the record holder of such shares, is no longer the beneficial owner thereof and therefore agrees
not to exercise its redemption rights. In the event that the Sponsor, directors, executive officers, advisors or any of their affiliates
purchase shares in privately negotiated transactions from public shareholders who have already elected to exercise their redemption rights,
such selling public shareholders would be required to revoke their prior elections to redeem their shares. While the exact nature of
any such incentives has not been determined as of the date of this Annual Report, they might include, without limitation, arrangements
to protect such investors or holders against potential loss in value of their shares, including the granting of put options and the transfer
of shares or the companys warrants owned by the Sponsor for nominal value to such investors or holders. Any Class A ordinary shares
acquired by the persons described above would not be voted in connection with the business combination.
The
purpose of any such transaction could be to reduce the number of public shares or warrants outstanding or vote such shares or warrants
on any matters submitted to the share or warrant holders for approval in connection with our initial business combination or to satisfy
a closing condition in an agreement with a target that requires us to have a certain amount of cash at the closing of our initial business
combination. Any such purchases of our securities may result in the completion of our initial business combination that may not otherwise
have been possible. Any such purchases will be reported pursuant to Section 13 and Section 16 of the Exchange Act 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.
In
addition, if such purchases are made, the public float of our Class A ordinary shares or warrants 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. Any such purchases will be reported pursuant to Section 13 and Section
16 of the Exchange Act to the extent such purchasers are subject to such reporting requirements. Additionally, in the event our Sponsor,
initial shareholders, directors, officers, advisors and their affiliates were to purchase public shares or warrants from public shareholders,
such purchases would be structured in compliance with the requirements of Rule 14e-5 under the Exchange Act 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, initial
shareholders, directors, officers, advisors and their affiliates may purchase public shares or warrants from public shareholders
outside the redemption process, along with the purpose of such purchases | |
| 21 | |
| | |
| 
| 
| 
if our Sponsor, initial
shareholders, directors, officers, advisors and their 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, initial shareholders, directors, officers, advisors and their affiliates would not be voted in favor of approving the business
combination transaction | |
| 
| 
| 
| |
| 
| 
| 
our Sponsor, initial shareholders,
directors, officers, advisors and their 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, initial shareholders, directors, officers, advisors and
their affiliates, along with the purchase price | |
| 
| 
| 
| |
| 
| 
| 
the purpose of the purchases
by our Sponsor, initial shareholders, directors, officers, advisors and their affiliates | |
| 
| 
| 
| |
| 
| 
| 
the impact, if any, of
the purchases by our Sponsor, initial shareholders, directors, officers, advisors and their affiliates on the likelihood that the
business combination transaction will be approved | |
| 
| 
| 
| |
| 
| 
| 
the identities of our security
holders who sold to our Sponsor, initial shareholders, directors, officers, advisors and their 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, initial shareholders, directors,
officers, advisors and their affiliates and | |
| 
| 
| 
| |
| 
| 
| 
the number of our securities
for which we have received redemption requests pursuant to our redemption offer. | |
****
**Our
public shareholders will not be entitled to protections normally afforded to investors of many other blank check companies.**
Since
the net proceeds of the initial public offering and the sale of the private securities are intended to be used to complete an initial
business combination with a target business that has not been identified, we may be deemed to be a blank check company
under the United States securities laws. However, we are exempt from rules promulgated by the SEC to protect investors in blank check
companies, such as Rule 419. Accordingly, investors will not be afforded the benefits or protections of those rules. Among other things,
this means our units are immediately tradable and we will have a longer period of time to complete our initial business combination than
do companies subject to Rule 419. Moreover, if the initial public offering were subject to Rule 419, that rule would prohibit the release
of any interest earned on funds held in the trust account to us unless and until the funds in the trust account were released to us in
connection with our completion of an initial business combination.
| 22 | |
| | |
**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 approximately $10.00 per share, or less in certain circumstances, on our redemption, and our warrants will expire worthless.**
We
expect to encounter intense competition from other entities having a business objective similar to ours, including private investors
(which may be individuals or investment partnerships), other blank check companies and other entities, domestic and international, competing
for the types of businesses we intend to acquire. Many of these individuals and entities are well-established and have extensive experience
in identifying and effecting, directly or indirectly, acquisitions of companies operating in or providing services to various industries.
Many of these competitors possess greater technical, human and other resources or more local industry knowledge than we do and our financial
resources will be relatively limited when contrasted with those of many of these competitors. While we believe there are numerous target
businesses we could potentially acquire with the net proceeds of the initial public offering and the sale of the private securities,
our ability to compete with respect to the acquisition of certain target businesses that are sizable will be limited by our available
financial resources. This inherent competitive limitation gives others an advantage in pursuing the acquisition of certain target businesses.
Furthermore, if we are obligated to pay cash for the Class A ordinary shares redeemed and, in the event we seek shareholder approval
of our initial business combination, we make purchases of our Class A ordinary shares, potentially reducing the resources available to
us for our initial business combination. Any of these obligations may place us at a competitive disadvantage in successfully negotiating
a business combination. If we are unable to complete our initial business combination, our public shareholders may receive only approximately
$10.00 per share (or less in certain circumstances) on the liquidation of our trust account and our warrants will expire worthless. In
certain circumstances, our public shareholders may receive less than $10.00 per share on the redemption of their shares.
**If
the net proceeds of the initial public offering not being held in the trust account are insufficient to allow us to operate for at least
24 months following the closing of the initial public offering, we may be unable to complete our initial business combination.**
The
funds available to us outside of the trust account may not be sufficient to allow us to operate for at least the 24 months following
the closing of the initial public offering, assuming that our initial business combination is not completed during that time. We expect
to incur significant costs in pursuit of our acquisition plans. Our Sponsor may loan funds to us in such circumstances. However, our
affiliates, including our Sponsor, are not obligated to make additional loans to us in the future, and we may not be able to raise additional
financing from unaffiliated parties necessary to fund our expenses. Any such event in the future may negatively impact the analysis regarding
our ability to continue as a going concern at such time.
We
believe that the funds available to us outside of the trust account are sufficient to allow us to operate for at least the 24 months
following the closing of the initial public offering however, we cannot assure our public shareholders that our estimate is accurate.
Of the funds available to us, we could use a portion of the funds available to us to pay fees to consultants to assist us with our search
for a target business. We could also use a portion of the funds as a down payment or to fund a no-shop provision (a provision
in letters of intent designed to keep target businesses from shopping around for transactions with other companies on terms
more favorable to such target businesses) with respect to a particular proposed business combination, although we do not have any current
intention to do so. If we entered into a letter of intent where we paid for the right to receive exclusivity from a target business and
were subsequently required to forfeit such funds (whether as a result of our breach or otherwise), we might not have sufficient funds
to continue searching for, or conduct due diligence with respect to, a target business. If we are unable to complete our initial business
combination, our public shareholders may receive only approximately $10.00 per share (or less in certain circumstances) on the liquidation
of our trust account and our warrants will expire worthless. In such case, our public shareholders may only receive $10.00 per share,
and our warrants will expire worthless. In certain circumstances, our public shareholders may receive less than $10.00 per share on the
redemption of their shares.
****
| 23 | |
| | |
****
**Subsequent
to the 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 our share price,
which could cause our public shareholders to lose some or all of their investment.**
Even
if we conduct extensive due diligence on a target business with which we combine, we cannot assure our public shareholders that this
diligence will surface all material issues that may be present inside a particular target business, that it would be possible to uncover
all material issues through a customary amount of due diligence, or that factors outside of the target business and outside of our control
will not later arise. As a result of these factors, we may be forced to later write-down or write-off assets, restructure our operations,
or incur impairment or other charges that could result in our reporting losses. Even if our due diligence successfully identifies certain
risks, unexpected risks may arise and previously known risks may materialize in a manner not consistent with our preliminary risk analysis.
Even though these charges may be non-cash items and not have an immediate impact on our liquidity, the fact that we report charges of
this nature could contribute to negative market perceptions about us or our securities. In addition, charges of this nature may cause
us to violate net worth or other covenants to which we may be subject as a result of assuming pre-existing debt held by a target business
or by virtue of our obtaining post-combination debt financing. Accordingly, any shareholders who choose to remain shareholders following
the business combination could suffer a reduction in the value of their shares. Such shareholders are unlikely to have a remedy for such
reduction in value.
**If
third parties bring claims against us, the proceeds held in the trust account could be reduced and the per-share redemption amount received
by shareholders may be less than $10.00 per share.**
Our
placing of funds in the trust account may not protect those funds from third-party claims against us. Although we will seek to have all
third parties (other than our independent auditors), 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 any monies held in the trust account for the benefit
of our public shareholders, such parties may not execute such agreements, or even if they execute such agreements they may not 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 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 perform an analysis of the alternatives available to
it and will only enter into an agreement with a third party that has not executed a waiver if management believes that such third partys
engagement would be significantly more beneficial to us than any alternative.
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. 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. Upon redemption
of our public shares, if we are unable to complete our initial business combination within the prescribed time frame, or upon the exercise
of a redemption right in connection with our initial business combination or certain amendments to our amended and restated memorandum
and articles of association, we will be required to provide for payment of claims of creditors that were not waived that may be brought
against us within the 10 years following redemption. Accordingly, the per-share redemption amount received by public shareholders could
be less than the $10.00 per share initially held in the trust account, due to claims of such creditors.
The
Sponsor has agreed that it will be liable to us if and to the extent any claims by a third party (other than our independent auditors)
for services rendered or products sold to us, or a prospective target business with which we have discussed entering into a transaction
agreement, reduce the amount of funds in the trust account to below (i) $10.00 per public share or (ii) such lesser amount per public
share held in the trust account as of the date of the liquidation of the trust account due to reductions in the value of the trust assets,
in each case net of permitted withdrawals, except as to any claims by a third party who executed a waiver of any and all rights to seek
access to the trust account and except as to any claims under our indemnity of the underwriters of the initial public offering against
certain liabilities, including liabilities under the Securities Act. Moreover, in the event that an executed waiver is deemed to be unenforceable
against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. We have not independently
verified whether the Sponsor has sufficient funds to satisfy their indemnity obligations and believe that the Sponsors only assets
are securities of our company. The Sponsor may not have sufficient funds available to satisfy those obligations. We have not asked the
Sponsor to reserve for such obligations, and therefore, no funds are currently set aside to cover any such 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 our public shareholders 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 third parties and
prospective target businesses.
| 24 | |
| | |
**Our
directors may decide not to enforce the indemnification obligations of the Sponsor, resulting in a reduction in the amount of funds in
the trust account available for distribution to our public shareholders.**
In
the event that the proceeds in the trust account are reduced below the lesser of (i) $10.00 per public share or (ii) such lesser amount
per share held in the trust account as of the date of the liquidation of the trust account due to reductions in the value of the trust
assets, in each case net of permitted withdrawals, and the Sponsor asserts that it is unable to satisfy its obligations or that it has
no indemnification obligations related to a particular claim, our independent directors would determine whether to take legal action
against the Sponsor to enforce its indemnification obligations. While we currently expect that our independent directors would take legal
action on our behalf against the Sponsor to enforce its indemnification obligations to us, it is possible that our independent directors
in exercising their business judgment and subject to their fiduciary duties under Cayman Islands law, may choose not to do so in any
particular instance. If our independent directors choose not to enforce these indemnification obligations, the amount of funds in the
trust account available for distribution to our public shareholders may be reduced below $10.00 per share.
****
**If,
after we distribute the proceeds in the trust account to our public shareholders, we file a bankruptcy or winding-up petition or an involuntary
bankruptcy or winding-up petition is filed against us that is not dismissed, a bankruptcy or insolvency 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 our creditors, thereby
exposing the members of our board of directors and us to claims of punitive damages.**
If,
after we distribute the proceeds in the trust account to our public shareholders, we file a bankruptcy or winding-up petition or an involuntary
bankruptcy or winding-up petition is filed against us that is not dismissed, any distributions received by shareholders could be viewed
under applicable debtor/creditor and/or bankruptcy or insolvency laws as either a preferential transfer or a fraudulent
conveyance. As a result, a bankruptcy or insolvency court could seek to recover all amounts received by our shareholders. In addition,
our board of directors may be viewed as having breached its fiduciary duty to our creditors and/or having acted in bad faith, thereby
exposing itself and us to claims of punitive damages, by paying public shareholders from the trust account prior to addressing the claims
of creditors, thereby exposing itself and us to claims of punitive damages.
****
**If,
before distributing the proceeds in the trust account to our public shareholders, we file a bankruptcy or winding-up petition or an involuntary
bankruptcy or winding-up 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 the per-share amount that would otherwise be received by our shareholders in connection with
our liquidation may be reduced.**
If,
before distributing the proceeds in the trust account to our public shareholders, we file a bankruptcy or winding-up petition or an involuntary
bankruptcy or winding-up 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 or insolvency 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, the per-share
amount that would otherwise be received by our shareholders in connection with our liquidation may be reduced.
****
| 25 | |
| | |
****
**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 prospects.**
The
funds in our operating account and our trust account are held in banks or other financial institutions and are invested or held only
in either (i) U.S. government treasury obligations with a maturity of 185 days or less or in money market funds meeting certain conditions
under Rule 2a-7 under the Investment Company Act which invest only in direct U.S. government treasury obligations, (ii) as uninvested
cash, or (iii) an interest bearing bank demand deposit account or other accounts at a bank. 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 we hold investments in the trust
account, we may, at any time (and will no later than 24 months from the closing of the initial public offering) 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. Our cash held in non-interest bearing and interest-bearing accounts may exceed any applicable Federal Deposit
Insurance Corporation (FDIC) insurance limits. Should events, including limited liquidity, defaults, non-performance or
other adverse developments occur with respect to the banks or other financial institutions that hold our funds, or that affect financial
institutions or the financial services industry generally, or concerns or rumors about any events of these kinds or other similar risks,
the value of the assets in our trust account could be impaired, which could have a material impact on our operating results, liquidity,
financial condition and prospects. For example, on March 10, 2023, the FDIC announced that Silicon Valley Bank had been closed by the
California Department of Financial Protection and Innovation. We cannot guarantee that the banks or other financial institutions that
will hold our funds will not experience similar issues.
**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.**
Although
we have identified general criteria and guidelines for evaluating prospective target businesses, it is possible that a target business
with which we enter into our initial business combination will not have all of these positive attributes. If we complete our initial
business combination with a target that does not meet some or all of these guidelines, such combination may not be as successful as a
combination with a business that does meet all of our general criteria and guidelines. In addition, if we announce a prospective business
combination with a target that does not meet our general criteria and guidelines, a greater number of shareholders may exercise their
redemption rights, which may make it difficult for us to meet any closing condition with a target business that requires us to have a
minimum net worth or a certain amount of cash. In addition, if shareholder approval of the transaction is required by law, or we decide
to obtain shareholder approval for business or other legal reasons, it may be more difficult for us to attain shareholder approval of
our initial business combination if the target business does not meet our general criteria and guidelines. If we are unable to complete
our initial business combination, our public shareholders may receive only approximately $10.00 per share on the liquidation of our trust
account and our warrants will expire worthless.
****
**We
may seek acquisition opportunities in industries or sectors that may be outside of our managements areas of expertise.**
We
will consider a business combination outside of our managements areas of expertise if a business combination candidate is presented
to us and we determine that such candidate offers an attractive acquisition opportunity for our company. In the event we elect to pursue
an acquisition outside of the areas of our managements expertise, our managements expertise may not be directly applicable
to its evaluation or operation, and the information contained in this Annual Report regarding the areas of our managements expertise
would not be relevant to an understanding of the business that we elect to acquire. As a result, our management may not be able to adequately
ascertain or assess all of the significant risk factors. Accordingly, any shareholders who choose to remain shareholders following our
initial business combination could suffer a reduction in the value of their shares. Such shareholders are unlikely to have a remedy for
such reduction in value.
****
**We
are not required to obtain an opinion from an independent entity that commonly renders valuation opinions, and consequently, our public
shareholders may have no assurance from an independent source that the price we are paying for the business is fair to our company from
a financial point of view.**
Unless
we complete our business combination with an affiliated entity, or our board of directors cannot independently determine the fair market
value of the target business or businesses, we are not required to obtain an opinion from an independent entity that commonly renders
valuation opinions that the price we are paying for a target is fair to our company from a financial point of view. If no opinion is
obtained, our shareholders will be relying on the judgment of our board of directors, who will determine fair market value based on standards
generally accepted by the financial community. Such standards used will be disclosed in our tender offer documents or proxy solicitation
materials, as applicable, related to our initial business combination. However, if our board of directors is unable to determine the
fair value of an entity with which we seek to complete an initial business combination based on such standards, we will be required to
obtain an opinion as described above.
| 26 | |
| | |
**Because
we must furnish our shareholders with target business financial statements, we may lose the ability to complete an otherwise advantageous
initial business combination with some prospective target businesses.**
The
federal proxy rules require that a proxy statement with respect to a vote on a business combination meeting certain financial significance
tests include historical and/or pro forma financial statement disclosure in periodic reports. We will include the same financial statement
disclosure in connection with our tender offer documents, whether or not they are required under the tender offer rules. These financial
statements may be required to be prepared in accordance with, or be reconciled to, accounting principles generally accepted in the United
States of America (U.S. GAAP), or international financing reporting standards as issued by the International Accounting
Standards Board (IFRS), depending on the circumstances and the historical financial statements may be required to be audited
in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB). These financial
statement requirements may limit the pool of potential target businesses we may acquire 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.
****
**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 acquisition.**
Section
404 of the Sarbanes-Oxley Act requires that we evaluate and report on our system of internal controls beginning with our Annual Report
on Form 10-K for the year ending December 31, 2026. Only in the event we are deemed to be a large accelerated filer or an accelerated
filer will we be required to comply with the independent registered public accounting firm attestation requirement on our internal control
over financial reporting. Further, for as long as we remain an emerging growth company, we will not be required to comply with the independent
registered public accounting firm attestation requirement on our internal control over financial reporting. The fact that we are a blank
check company makes compliance with the requirements of the Sarbanes-Oxley Act particularly burdensome on us as compared to other public
companies because a target company with which we seek to complete our initial business combination may not be in compliance with the
provisions of the Sarbanes-Oxley Act regarding adequacy of its internal controls. The development of the internal control of any such
entity to achieve compliance with the Sarbanes-Oxley Act may increase the time and costs necessary to complete any such acquisition.
****
**We
may engage one or more of our underwriters or one of their respective affiliates to provide additional services to us after the initial
public offering, which may include acting as M&A advisor in connection with an initial business combination or as placement agent
in connection with a related financing transaction. Our underwriters are entitled to receive deferred underwriting commissions that will
be released from the trust account only upon a completion of an initial business combination. These financial incentives may cause our
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.**
We
may engage one or more of our underwriters or one of their respective affiliates to provide additional services to us after the initial
public offering, including, for example, identifying potential targets, providing M&A advisory services, acting as a placement agent
in a private offering or arranging debt financing transactions. We may pay such underwriter or its affiliate fair and reasonable fees
or other compensation that would be determined at that time in an arms length negotiation provided that no agreement will
be entered into with such underwriter or its respective affiliates and no fees or other compensation for such services will be paid to
such underwriter or its respective affiliates prior to the date that is 60 days from the effective date of our registration statement,
unless such payment would not be deemed underwriters compensation in connection with the initial public offering. The underwriters
are also entitled to receive deferred underwriting commissions that are conditioned on the completion of an initial business combination.
The underwriters or their respective affiliates financial interests tied to the consummation of a business combination
transaction may give rise to potential conflicts of interest in providing any such additional services to us, including potential conflicts
of interest in connection with the sourcing and consummation of an initial business combination. The underwriters are under no obligation
to provide any further services to us in order to receive all or any part of the deferred underwriting commissions.
****
| 27 | |
| | |
****
**We
do not have a specified maximum redemption threshold. The absence of such a redemption threshold may make it possible for us to complete
a business combination with which a substantial majority of our shareholders do not agree.**
Our
amended and restated memorandum and articles of association do not provide a specified maximum redemption threshold. As a result, we
may be able to complete our initial business combination even though a substantial majority of our public shareholders do not agree with
the transaction and have redeemed their shares. In the event the aggregate cash consideration we would be required to pay for all Class
A ordinary shares that are validly submitted for redemption plus any amount required to satisfy cash conditions pursuant to the terms
of the proposed business combination exceed the aggregate amount of cash available to us, we will not complete the business combination
or redeem any shares, all Class A ordinary shares submitted for redemption will be returned to the holders thereof, and we instead may
search for an alternate business combination.
****
**Investors
may not have sufficient time to comply with the delivery requirements for redemption.**
Pursuant
to our amended and restated memorandum and articles of association, we are required to give a minimum of only five clear days
notice for each general meeting. As a result, if we require public shareholders who wish to redeem their public shares into the right
to receive a pro rata portion of the funds in the trust account to comply with specific delivery requirements for redemption, holders
may not have sufficient time to receive the notice and deliver their shares for redemption. Accordingly, investors may not be able to
exercise their redemption rights and may be forced to retain our securities when they otherwise would not want to.
****
**In
order to effectuate an initial business combination, blank check companies have, in the recent past, amended various provisions of their
charters and modified governing instruments. We cannot assure our public shareholders that we will not seek to amend our amended and
restated memorandum and articles of association or governing instruments in a manner that will make it easier for us to complete our
initial business combination that some of our shareholders may not support.**
In
order to effectuate a business combination, blank check companies have, in the recent past, amended various provisions of their charters
and modified governing instruments. For example, blank check companies have amended the definition of business combination, increased
redemption thresholds and extended the period of time in which it had to consummate a business combination. Amending our amended and
restated memorandum and articles of association requires a special resolution of our shareholders as a matter of Cayman Islands law.
We cannot assure our public shareholders that we will not seek to amend our amended and restated memorandum and articles of association
or other governing instruments or extend the time in which we have to consummate a business combination in order to effectuate our initial
business combination.
****
**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.**
When
evaluating the desirability of effecting our initial business combination with a prospective target business, our ability to assess the
target businesss management may be limited due to a lack of time, resources or information. Our assessment of the capabilities
of the targets management, therefore, may prove to be incorrect and such management may lack the skills, qualifications or abilities
we suspected. Should the targets management not possess the skills, qualifications or abilities necessary to manage a public company,
the operations and profitability of the post-combination business may be negatively impacted. Accordingly, any shareholders who choose
to remain shareholders following the business combination could suffer a reduction in the value of their shares. Such shareholders are
unlikely to have a remedy for such reduction in value. The officers and directors of an acquisition candidate may resign upon completion
of our initial business combination. The departure of a business combination targets key personnel could negatively impact the
operations and profitability of our post-combination business. The role of an acquisition candidates key personnel upon the completion
of our initial business combination cannot be ascertained at this time. Although we contemplate that certain members of an acquisition
candidates management team will remain associated with the acquisition candidate following our initial business combination, it
is possible that members of the management of an acquisition candidate will not wish to remain in place.
****
| 28 | |
| | |
****
**Certain
provisions of our amended and restated memorandum and articles of association that relate to our pre-initial business combination activity
(and corresponding provisions of the agreement governing the release of funds from our trust account), including an amendment to permit
us to withdraw funds from the trust account such that the per share amount investors will receive upon any redemption or liquidation
is substantially reduced or eliminated, may be amended with the approval of a special resolution under Cayman Islands law and our amended
and restated memorandum and articles of association (and corresponding provisions of the trust agreement governing the release of funds
from our trust account may be amended in accordance with the terms of the trust agreement). It may be easier for us, therefore, to amend
our amended and restated memorandum and articles of association and the trust agreement to facilitate the completion of an initial business
combination that some of our shareholders may not support.**
Our
amended and restated memorandum and articles of association provide that any of its provisions (other than amendments relating to the
appointment or removal of directors prior to our initial business combination and amendments relating to the companys continuation
in a jurisdiction outside the Cayman Islands prior to our business combination, which would require the approval of a majority 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 the 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) related to pre-initial
business combination activity (including the requirement to deposit proceeds of the initial public offering and the private placement
into the trust account and not release such amounts except in specified circumstances, and to provide redemption rights to public shareholders
as described herein and in our amended and restated memorandum and articles of association or an amendment to permit us to withdraw funds
from the trust account such that the per share amount investors will receive upon any redemption or liquidation is substantially reduced
or eliminated) may be amended if approved by a special resolution under Cayman Islands law and our amended and restated memorandum and
articles of association, vote at a general meeting, and corresponding provisions of the trust agreement governing the release of funds
from our trust account may be amended in accordance with the terms of the trust agreement. Our initial holders and holders of placement
shares may participate in any vote to amend our amended and restated memorandum and articles of association and/or trust agreement and
have the discretion to vote in any manner they choose. As a result, we may be able to amend the provisions of our amended and restated
memorandum and articles of association which govern our pre-initial business combination behavior more easily than some other blank check
companies, and this may increase our ability to complete a business combination with which our public shareholders do not agree. Our
shareholders may pursue remedies against us for any breach of our amended and restated memorandum and articles of association.
****
**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.**
Although
we believe that the net proceeds of the initial public offering and the sale of the private securities will be sufficient to allow us
to complete our initial business combination, because we have not yet identified any prospective target business we cannot ascertain
the capital requirements for any particular transaction. If the net proceeds of the initial public offering and the sale of the private
securities prove to be insufficient, either because of the size of our initial business combination, the depletion of the available net
proceeds in search of a target business, the obligation to redeem for cash a significant number of shares from shareholders who elect
redemption in connection with our initial business combination or the terms of negotiated transactions to purchase shares in connection
with our initial business combination, we may be required to seek additional financing or to abandon the proposed business combination.
We cannot assure our public shareholders that such financing will be available on acceptable terms, if at all. To the extent that additional
financing proves to be unavailable when needed to complete our initial business combination, we would be compelled to either restructure
the transaction or abandon that particular business combination and seek an alternative target business candidate. In addition, even
if we do not need additional financing to complete our initial business combination, we may require such financing to fund the operations
or growth of the target business. The failure to secure additional financing could have a material adverse effect on the continued development
or growth of the target business. None of our officers, directors or shareholders is required to provide any financing to us in connection
with or after our initial business combination. If we are unable to complete our initial business combination, our public shareholders
may only receive approximately $10.00 per share on the liquidation of our trust account, and our warrants will expire worthless.
****
| 29 | |
| | |
****
**Resources
could be wasted in researching acquisitions that are not completed, which could materially adversely affect subsequent attempts to locate
and acquire or merge with another business. If we are unable to complete our initial business combination, our public shareholders may
receive only approximately $10.00 per share, or less than such amount in certain circumstances, on the liquidation of our trust account
and our warrants will expire worthless.**
We
anticipate that the investigation of each specific target business and the negotiation, drafting and execution of relevant agreements,
disclosure documents and other instruments will require substantial management time and attention and substantial costs for accountants,
attorneys and others. If we decide not to complete a specific initial business combination, the costs incurred up to that point for the
proposed transaction likely would not be recoverable. Furthermore, if we reach an agreement relating to a specific target business, we
may fail to complete our initial business combination for any number of reasons, including those beyond our control. Any such event will
result in a loss to us of the related costs incurred which could materially adversely affect subsequent attempts to locate and acquire
or merge with another business. If we are unable to complete our initial business combination, our public shareholders may receive only
approximately $10.00 per share on the liquidation of our trust account and our warrants will expire worthless.
**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 structure a business combination so that the post-transaction company in which our public shareholders own shares will own less than
100% of the equity interests or assets of a target business, 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 us not to be required to register as an investment company under the Investment Company Act. We will not
consider any transaction that does not meet such criteria. Even if the post-transaction company owns 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 business combination
company, depending on valuations ascribed to the target and us in the business combination transaction. For example, we could pursue
a transaction in which we issue a substantial number of new ordinary shares in exchange for all of the outstanding shares or other equity
interests of a target. In this case, we would acquire a 100% interest in the target. However, as a result of the issuance of a substantial
number of new ordinary shares, our shareholders immediately prior to such transaction could own less than a majority of our issued and
outstanding ordinary shares subsequent to such transaction. In addition, other minority shareholders may subsequently combine their holdings
resulting in a single person or group obtaining a larger share of the companys shares than we initially acquired. Accordingly,
this may make it more likely that our management will not be able to maintain our control of the target business.
**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.**
Although
we have no commitments as of the date of this Annual Report to issue any notes or other debt securities, or to otherwise incur outstanding
debt, we may choose to incur substantial debt to complete our initial business combination. We have agreed that we will not incur any
indebtedness unless we have obtained from the lender a waiver of any right, title, interest or claim of any kind in or to the monies
held in the trust account. As such, no issuance of debt will affect the per-share amount available for redemption from the trust account.
Nevertheless, the incurrence of debt could have a variety of negative effects, including:
| 
| 
| 
default and
foreclosure on our assets if our operating revenues after an initial business combination are insufficient to repay our debt obligations | |
| 30 | |
| | |
| 
| 
| 
acceleration
of our obligations to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants
that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant | |
| 
| 
| 
| |
| 
| 
| 
our immediate payment of
all principal and accrued interest, if any, if the debt security is payable on demand | |
| 
| 
| 
| |
| 
| 
| 
our inability to obtain
necessary additional financing if the debt security contains covenants restricting our ability to obtain such financing while the
debt security is outstanding | |
| 
| 
| 
| |
| 
| 
| 
our inability to pay dividends
on our ClassA ordinary shares | |
| 
| 
| 
| |
| 
| 
| 
using a substantial portion
of our cash flow to pay principal and interest on our debt, which will reduce the funds available for dividends on our ClassA
ordinary shares if declared, expenses, capital expenditures, acquisitions and other general corporate purposes | |
| 
| 
| 
| |
| 
| 
| 
limitations on our flexibility
in planning for and reacting to changes in our business and in the industry in which we operate | |
| 
| 
| 
| |
| 
| 
| 
increased vulnerability
to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation or prevailing
interest rates and | |
| 
| 
| 
| |
| 
| 
| 
limitations on our ability
to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy
and other purposes and other disadvantages compared to our competitors who have less debt. | |
****
**Holders
of Class A ordinary shares will not be entitled to vote on any appointment or removal of directors we hold prior to our initial business
combination unless there are no longer any Class B ordinary shares outstanding.**
Prior
to our initial business combination, only holders of our Class B ordinary shares will have the right to vote on the appointment and removal
of directors. Holders of our public shares will not be entitled to vote on the appointment or removal of directors during such time unless
there are no longer any Class B ordinary shares outstanding. In addition, prior to our initial business combination, holders of a majority
of our Class B ordinary shares may remove a member of the board of directors (the Board) for any reason. Accordingly, as
holders of our Class A ordinary shares, our public shareholders will not have any say in the management of our company prior to the consummation
of an initial business combination.
****
**Because
we are not limited to a particular industry or any specific target businesses with which to pursue our initial business combination,
our public shareholders will be unable to ascertain the merits or risks of any particular target businesss operations.**
We
may seek to complete a business combination with an operating company in any industry or sector. However, we will not, under our amended
and restated memorandum and articles of association, be permitted to effectuate our initial business combination with another blank check
company or similar company with nominal operations. Because we have not yet identified or approached any specific target business with
respect to a business combination, there is no basis to evaluate the possible merits or risks of any particular target businesss
operations, results of operations, cash flows, liquidity, financial condition or prospects. To the extent we complete our initial business
combination, we may be affected by numerous risks inherent in the business operations with which we combine. For example, if we combine
with a financially unstable business or an entity lacking an established record of sales or earnings, we may be affected by the risks
inherent in the business and operations of a financially unstable entity. Although our officers and directors will endeavor to evaluate
the risks inherent in a particular target business, we cannot assure our public shareholders that we will properly ascertain or assess
all of the significant risk factors or that we will have adequate time to complete due diligence. Furthermore, some of these risks may
be outside of our control and leave us with no ability to control or reduce the chances that those risks will adversely impact a target
business. We also cannot assure our public shareholders that an investment in our units will ultimately prove to be more favorable to
investors than a direct investment, if such opportunity were available, in a business combination target. Accordingly, any shareholders
who choose to remain shareholders following the business combination could suffer a reduction in the value of their shares. Such shareholders
are unlikely to have a remedy for such reduction in value.
****
| 31 | |
| | |
****
**We
may seek acquisition opportunities with an early-stage company, a financially unstable business or an entity lacking an established record
of revenue or earnings.**
To
the extent we complete our initial business combination with an early-stage company, a financially unstable business or an entity lacking
an established record of sales or earnings, we may be affected by numerous risks inherent in the operations of the business with which
we combine. These risks include volatile revenues or earnings and difficulties in obtaining and retaining key personnel. In recent years,
a number of target businesses have underperformed financially post-business combination. There are no assurances that the target business
with which we consummate our initial business combination will perform as anticipated. Although our officers and directors will endeavor
to evaluate the risks inherent in a particular target business, we may not be able to properly ascertain or assess all of the significant
risk factors and we may not have adequate time to complete due diligence. Furthermore, some of these risks may be outside of our control
and leave us with no ability to control or reduce the chances that those risks will adversely impact a target business.
****
**We
may only be able to complete one business combination with the proceeds of the initial public offering and the sale of the private securities,
which will cause us to be solely dependent on a single business which may have a limited number of products or services. This lack of
diversification may negatively impact our operations and profitability.**
Of
the gross proceeds from the initial public offering and the sale of the private securities, $101,823,000 is available to complete our
business combination and pay related fees and expenses (which includes $3,563,805 for the payment of deferred underwriting commissions).
We
may effectuate our initial business combination with a single target business or multiple target businesses simultaneously or within
a short period of time. However, we may not be able to effectuate our initial business combination with more than one target business
because of various factors, including the existence of complex accounting issues and the requirement that we prepare and file pro forma
financial statements with the SEC that present operating results and the financial condition of several target businesses as if they
had been operated on a combined basis. By completing our initial business combination with only a single entity, our lack of diversification
may subject us to numerous economic, competitive and regulatory risks. Further, we would not be able to diversify our operations or benefit
from the possible spreading of risks or offsetting of losses, unlike other entities which may have the resources to complete several
business combinations in different industries or different areas of a single industry. Accordingly, the prospects for our success may
be:
| 
| 
| 
solely dependent
upon the performance of a single business, property or asset or | |
| 
| 
| 
| |
| 
| 
| 
dependent upon the development
or market acceptance of a single or limited number of products, processes or services. | |
****
This
lack of diversification may subject us to numerous economic, competitive and regulatory risks, any or all of which may have a substantial
adverse impact upon the particular industry in which we may operate subsequent to our initial business combination.
****
**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.**
If
we determine to simultaneously acquire several businesses that are owned by different sellers, we will need for each of such sellers
to agree that our purchase of its business is contingent on the simultaneous closings of the other business combinations, which may make
it more difficult for us, and delay our ability, to complete our initial business combination. With multiple business combinations, we
could also face additional risks, including additional burdens and costs with respect to possible multiple negotiations and due diligence
investigations (if there are multiple sellers) and the additional risks associated with the subsequent assimilation of the operations
and services or products of the acquired companies in a single operating business. If we are unable to adequately address these risks,
it could negatively impact our profitability and results of operations.
****
| 32 | |
| | |
****
**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.**
In
pursuing our acquisition strategy, we may seek to effectuate our initial business combination with a privately held company. Very little
public information generally exists about private companies, and we could be required to make our decision on whether to pursue a potential
initial business combination on the basis of limited information, which may result in a business combination with a company that is not
as profitable as we suspected, if at all.
****
**We
may partner, submit a joint bid or enter into a similar transaction with holders of founder shares or an affiliate in connection with
our pursuit of, or in connection with, a business combination.**
We
are not prohibited from partnering, submitting a joint bid or entering into any similar transaction with holders of founder shares or
their affiliates in our pursuit of a business combination. Although we currently have no plans to do so, we could pursue such a transaction
if we determined that such affiliated entity met our criteria for a business combination and the transaction was approved by a majority
of our disinterested directors. Despite our agreement to obtain an opinion from an independent entity that commonly renders valuation
opinions regarding the fairness to our company from a financial point of view of a business combination with any holder of founder shares
or its affiliates, the terms of the business combination may not be as advantageous to our public shareholders as they would be absent
any conflicts of interest. Additionally, were we successful in consummating such a transaction, conflicts could invariably arise from
the interest of the holder of founder shares or its affiliate in maximizing its returns, which may be at odds with the strategy of the
post-business combination company or not in the best interests of the public shareholders of the post-business combination company. Any
or all of such conflicts could materially reduce the value of our public shareholders investment, whether before or after our
initial business combination.
****
**Risks
Relating to Our Sponsor and Management Team**
****
**We
are dependent upon our officers and directors and their departure could adversely affect our ability to operate.**
Our
operations are dependent upon a relatively small group of individuals. We believe that our success depends on the continued service of
our officers and directors, at least until we have completed our initial business combination. In addition, our officers and directors
are not required to commit any specified amount of time to our affairs and, accordingly, will have conflicts of interest in allocating
management time among various business activities, including identifying potential business combinations and monitoring the related due
diligence. We do not have an employment agreement with, or key-man insurance on the life of, any of our directors or officers. The unexpected
loss of the services of one or more of our directors or officers could have a detrimental effect on us.
****
**Our
ability to successfully effect our initial business combination and to be successful thereafter will be totally 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-combination business.**
Our
ability to successfully effect our initial business combination is dependent upon the efforts of our key personnel. The role of our key
personnel in the target business, however, cannot presently be ascertained. Although some of our key personnel may remain with the target
business in senior management or advisory positions following our initial business combination, it is likely that some or all of the
management of the target business will remain in place. While we intend to closely scrutinize any individuals we engage after our initial
business combination, we cannot assure our public shareholders that our assessment of these individuals will prove to be correct. These
individuals may be unfamiliar with the requirements of operating a company regulated by the SEC, which could cause us to have to expend
time and resources helping them become familiar with such requirements.
| 33 | |
| | |
In
addition, the directors and officers of an acquisition candidate may resign upon completion of our initial business combination. The
departure of a business combination targets key personnel could negatively impact the operations and profitability of our post-combination
business. The role of an acquisition candidates key personnel upon the completion of our initial business combination cannot be
ascertained at this time. Although we contemplate that certain members of an acquisition candidates management team will remain
associated with the acquisition candidate following our initial business combination, it is possible that members of the management of
an acquisition candidate will not wish to remain in place. The loss of key personnel could negatively impact the operations and profitability
of our post-combination business.
****
**Our
key personnel may negotiate employment or consulting agreements with a target business in connection with a particular business combination.
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.**
Our
key personnel may be able to remain with the company after the completion of our initial business combination only if they are able to
negotiate employment or consulting agreements in connection with the business combination. Such negotiations would take place simultaneously
with the negotiation of the business combination and could provide for such individuals to receive compensation in the form of cash payments
and/or our securities for services they would render to us after the completion of the business combination. The personal and financial
interests of such individuals may influence their motivation in identifying and selecting a target business, subject to his or her fiduciary
duties under Cayman Islands law. 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 law. However, we believe the ability of such individuals to remain with us after the completion of our initial
business combination will not be the determining factor in our decision as to whether or not we will proceed with any potential business
combination. There is no certainty, however, that any of our key personnel will remain with us after the completion of our initial business
combination. We cannot assure our public shareholders that any of our key personnel will remain in senior management or advisory positions
with us. The determination as to whether any of our key personnel will remain with us will be made at the time of our initial business
combination.
Item
1B. Unresolved Staff Comments
None.
Item
1C. Cybersecurity
As
a blank check company, our sole business activity has been to search for and seek to consummate a business combination. However, we and
third parties who provide services to us may be subject to attacks on or security breaches in our or their systems. Because of our reliance
on the technologies of third parties, we also depend upon the personnel and the processes of such third parties to protect against cybersecurity
incidents, and we have no personnel or established processes of our own for this purpose. The Board and the audit committee are responsible
to oversee risk and are generally responsible for the oversight of risks from cybersecurity threats. Our management anticipates that
it will promptly report to the Board and the audit committee any known cybersecurity incidents impacting us and provide updates on managements
incident response plan for addressing and mitigating any risks associated with such an incident. It is possible that the occurrence of
any cybersecurity incidents, or a combination of incidents, could lead to corruption or misappropriation of our assets, proprietary information
and sensitive or confidential data and could have a material adverse effect on our business, financial condition or reputation. We have
not encountered any cybersecurity incidents since our initial public offering.
Item
2. Property
We
currently maintain our executive offices at 7100 W. Camino Real, Suite 302-48, Boca Raton, FL 33433. The cost for our use of this space
is included in the $20,000 per month fee we pay to an affiliate of our Sponsor for office space, administrative and support services.
We consider our current office space adequate for our current operations.
Item
3. Legal Proceedings
To
the knowledge of our management, there is no material litigation, arbitration or governmental proceeding currently pending against us
or any of our officers or directors in their capacity as such or against any of our property.
Item
4. Mine Safety Disclosures
Not
applicable.
| 34 | |
| | |
PART
II
Item
5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Market
Information
Our
public units, Class A ordinary shares and public warrants are each traded on NYSE American under the symbols UACU, UAC
and UACW, respectively. Our units commenced public trading on January 29, 2026. Our Class A ordinary shares and public
warrants began separate trading on February 18, 2026.
Holders
As
of March 25, 2026, there were four holders of record of our units, one holder of record of our Class A ordinary shares, five holders
of our Class B ordinary shares and two holders of record of our warrants. The number of holders of record does not include a substantially
greater number of street name holders or beneficial holders whose units, Class A ordinary shares and warrants are held
of record by banks, brokers and other financial institutions.
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. There
is no certainty we will be in a position to, or decide to, pay cash dividends after completing any business combination. Further, if
we incur any indebtedness in connection with a business combination, our ability to declare dividends may be limited by restrictive covenants
we may agree to in connection therewith.
Securities
Authorized for Issuance Under Equity Compensation Plans
None.
Performance
Graph
Not
applicable.
Recent
Sales of Unregistered Securities Use of Proceeds from Registered Offerings
**Unregistered
Sales**
****
On
October 24, 2025, our Sponsor paid $25,000 to cover certain expenses on our behalf in exchange for the issuance of 2,875,000 founder
shares, or approximately $0.009 per share. In November 2025, we effected a share dividend of approximately 0.33 shares for each Class
B ordinary share outstanding. Prior to the initial public offering, our Sponsor transferred 25,000 of our founders shares to each of
our four independent directors at the same per-share purchase price that our Sponsor paid.
Simultaneously
with the closing of the initial public offering, we consummated the private placement of 175,000 private placement units to our Sponsor
and 100,000 units to Lucid Capital Markets, LLC and Chardan Capital Markets, LLC (collectively, the Private Placement Units),
at a price of $10.00 per unit, and the Company consummated the private placement of 2,333,333 warrants to the Sponsor (the Private
Placement Warrants) at a price of $0.75 per private placement warrant, generating gross proceeds of $4,500,000. On February 12,
2026, in connection with the underwriters of our initial public offering partially exercising their option to purchase additional units,
we consummated the private placement of 457 units to our Sponsor and 1,823 units to the underwriters at a price of $10.00 per private
placement unit, and the private placement of 6,060 warrants to the Sponsor at a price of $0.75 per private placement warrant, generating
gross proceeds of $27,345. Each whole warrant entitles the registered holder to purchase one Class A ordinary share at a price of $11.50
per share, subject to adjustment.
| 35 | |
| | |
No
underwriting discounts or commissions were paid with respect to such sales. The issuance of the securities was made pursuant to the exemption
from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended.
**Use
of Proceeds**
****
On
January 30, 2026, we consummated the initial public offering of 10,000,000 units, at $10.00 per unit, generating gross proceeds of $100,000,000.
On February 12, 2026, as a result of the underwriters partially exercising their option to purchase additional units, we completed
the issuance and sale of an additional 182,300 units, at $10.00 per unit, generating gross proceeds of $1,823,000. Lucid Capital Markets,
LLC and Chardan Capital Markets, LLC acted as lead bookrunners of the initial public offering. The securities sold in the offering were
registered under the Securities Act on registration on Form S-1 (No. 333-291904). The SEC declared the registration statement effective
on January 28, 2026.
Of
the gross proceeds received from our initial public offering (including the additional units sold as a result of the partial exercise
by the underwriters of their over-allotment option) and the private placement, a total of $101,823,000 was placed in a U.S.-based trust
account maintained by Continental Stock Transfer & Trust Company, acting as trustee.
We
incurred transaction costs amounting to $5,627,730 consisting of $1,527,345 of upfront discount to the underwriters, $3,563,805 of deferred
underwriting fees and $536,580 of other offering costs.
There
has been no material change in the planned use of proceeds from such use as described in the Companys registration statement on
Form S-1 (File No. 333-291904), dated January 23, 2026, which was declared effective by the SEC on January 28, 2026.
Purchases
of Equity Securities by the Issuer and Affiliated Purchasers
None.
Item
6. [Reserved]
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 Annual Report including, without limitation, statements under this
Item regarding our financial position, business strategy and the plans and objectives of Management for future operations, are forward-looking
statements. When used in this Annual Report, words such as anticipate, believe, estimate, expect,
intend and similar expressions, as they relate to us or our Management, identify forward-looking statements. Such forward-looking
statements are based on the beliefs of our Management, 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 contained elsewhere in this Annual Report.
| 36 | |
| | |
Overview
We
are a blank check company incorporated in the Cayman Islands on October 22, 2025 formed for the purpose of entering into a merger, share
exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more businesses.
We intend to effectuate our business combination using cash derived from the proceeds of the initial public offering and the sale of
the Private Placement Warrants, our shares, debt or a combination of cash, shares and debt.
We
expect to continue to incur significant costs in the pursuit of our acquisition plans. We cannot assure you that our plans to complete
a business combination will be successful.
Results
of Operations
We
have neither engaged in any operations nor generated any revenues to date. Our only activities from October 22, 2025 (inception) through
December 31, 2025 were organizational activities, those necessary to prepare for the initial public offering, described below, and subsequent
to the closing of the initial public offering, identifying a target company for a business combination. We do not expect to generate
any operating revenues until after the completion of our business combination. We expect to generate non-operating income in the form
of interest and/or dividend income on investments held in the trust account. We incur 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 October 22, 2025 (inception) through December 31, 2025, we had a net loss $395,502, which consisted of formation, general,
and administrative costs of $49,502 and share-based compensation expense of $346,000.
Liquidity,
Capital Resources and Going Concern
Until
the consummation of the initial public offering, our only source of liquidity was an initial purchase of shares of Class B ordinary shares,
par value $0.0001 per share, by the Sponsor and loans from the Sponsor. As of December 31, 2025, we had cash of $1,960 and working capital
deficit of $354,610.
Subsequent
to the annual period covered by this Annual Report on Form 10-K, on January 30, 2026, we consummated the initial public offering of 10,000,000
units, at $10.00 per unit, generating gross proceeds of $100,000,000. Simultaneously with the closing of the initial public offering,
we consummated the sale of an aggregate of 275,000 private placement units, at a price of $10.00 per Private Placement Unit, generating
gross proceeds of $2,750,000. Of those 275,000 private placement units, the Sponsor purchased 175,000 private placement units, and the
underwriters purchased 100,000 private placement units. In addition, we consummated the sale of an aggregate of 2,333,333 private placement
warrants, at a price of $0.75 per private placement warrant, $1,750,000 in the aggregate, to the Sponsor.
We
incurred total transaction costs of $5,536,580, consisting of $1,500,000 of cash underwriting fees, $3,500,000 of deferred underwriting
fees, and $536,580 of other offering costs.
On
February 12, 2026, we consummated the closing of an additional 182,300 units sold pursuant to the underwriters partial exercise
of their over-allotment option, generating gross proceeds of $1,823,000. On February 12, 2026, simultaneously with the sale of the additional
units, we consummated the private sale of an additional 2,280 private placement units to the Sponsor and underwriters generating gross
proceeds of $22,800. Of those 2,280 private placement units, the Sponsor purchased 457 private placement units while the underwriters
purchased 1,823 private placement units. In addition, we also consummated the private sale of an additional 6,060 private placement warrants
to the Sponsor generating gross proceeds of $4,545.
We
incurred additional transaction costs totaling to $91,150, consisting of $27,345 of cash underwriting fees and $63,805 of deferred underwriting
fees.
| 37 | |
| | |
As
of February 12, 2026, a total of $101,823,000 of the net proceeds from the initial public offering (including the additional units sold
as the result of the partial exercise by the underwriters of their over-allotment option) and the sale of the private placement units
and private placement warrants were placed in the trust account.
For
the period from October 22, 2025 (inception) through December 31, 2025, net cash used in operating activities was $26,040. Net loss of
$395,502 was affected by payment of formation, general, and administrative costs through promissory note related party of $11,462,
share-based compensation expense of $346,000, and changes in accrued expenses of $12,000.
We
intend to use substantially all of the funds held in the trust account, including any amounts representing interest earned on the trust
account (less income taxes payable), 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.
We
intend to 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.
In
order to finance transaction costs in connection with a business combination, the Sponsor or an affiliate of the Sponsor or certain of
our officers and directors may, but are not obligated to, loan the Company up to $1,500,000. If we complete a business combination, we
would repay the 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 the working capital loans but no proceeds from the trust account would be used to repay the working
capital loans. The working capital loans are convertible into units of the post-business combination entity at a price of $10.00 per
unit at the option of the lender. The units would be identical to the private placement units. The terms of such loans by our officers
and directors, if any, have not been determined and no written agreements exist with respect to such loans.
We
do not believe we will need to raise additional funds in order to meet the expenditures required for operating our business. However,
if our 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, we may have insufficient funds available to operate our business prior to our business
combination. Moreover, we may need to obtain additional financing either to complete our business combination or because we become obligated
to redeem a significant number of our public shares upon consummation of our business combination, in which case we may issue additional
securities or incur debt in connection with such business combination.
Off-Balance
Sheet Financing Arrangements
We
have no obligations, assets or liabilities, which would be considered off-balance sheet arrangements as of December 31, 2025. We do not
participate in transactions that create relationships with unconsolidated entities or financial partnerships, often referred to as variable
interest entities, which would have been established for the purpose of facilitating off-balance sheet arrangements. We have not entered
into any off-balance sheet financing arrangements, established any special purpose entities, guaranteed any debt or commitments of other
entities, or purchased any non-financial assets.
Contractual
Obligations
We
do not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities, other than an agreement
to pay the Sponsor, or affiliates of the Sponsor, a monthly fee of $20,000 for office space, utilities and secretarial and administrative
services. Upon completion of the initial business combination or liquidation, we will cease paying these monthly fees.
The
underwriters had a 45-day option from the date of the initial public offering to purchase up to an additional 1,500,000 units to cover
over-allotments, if any. On February 12, 2026, the underwriters elected to partially exercise their over-allotment option to purchase
an additional 182,300 units at a price of $10.00 per unit. On March 14, 2026, the remaining portion of the underwriters over-allotment
option expired.
| 38 | |
| | |
The
underwriters were entitled to a cash underwriting discount of $1,500,000 (1.50% of the gross proceeds of the Units sold in the initial
public offering) paid at the closing of the initial public offering. The underwriters were entitled to a cash underwriting discount of
$0.15 per additional Unit or $27,345 in aggregate, paid on February 12, 2026.
Additionally,
the underwriters are entitled to a deferred underwriting discount of 3.50% of the gross proceeds of the initial public offering held
in the trust account, $3,500,000 in the aggregate, due upon the completion of the Companys initial business combination subject
to the terms of the underwriting agreement. The underwriters are also entitled to a deferred underwriting discount of 3.50% of the gross
proceeds of the sale of additional units held in the trust account, $63,805 in the aggregate, due upon the completion of the Companys
initial business combination subject to the terms of the underwriting agreement.
Critical
Accounting Estimates and Policies
We
have identified the following as our critical accounting policies. See Note 2 Summary of Significant Accounting Policies
of our financial statements and notes thereto included in this Annual Report under Item 8. Financial Statements and Supplementary
Data 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 in this Annual Report under Item 8. Financial Statements and
Supplementary Data in conformity with accounting principles generally accepted in the United States of America (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 in this Annual Report under Item 8. Financial Statements and Supplementary Data
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.
**Deferred
Offering Costs**
The
Company complies with the requirements of the Financial Accounting Standards Board (FASB) ASC Topic 340-10-S99 and SEC
Staff Accounting Bulletin Topic 5A, Expenses of Offering. Deferred offering costs consist principally of professional
and registration fees that are related to the initial public offering. FASB ASC 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 applies this guidance to allocate initial public offering proceeds from the Units between Class A ordinary shares and
warrants, using the residual method by allocating initial public offering proceeds first to assigned value of the warrants and then
to the Class A ordinary shares. On January 30, 2026, upon completion of the initial public offering, and on February 12, 2026 upon
the sale of the additional Units as a result of the underwriters partial exercise of their over-allotment option, offering
costs allocated to the Public Shares subject to possible redemption are charged to temporary equity and offering costs allocated to
the Public Warrants, Private Placement Units, and Private Placement Warrants are charged to shareholders deficit as Public
and Private Placement Warrants, after managements evaluation, are accounted for under equity treatment.
| 39 | |
| | |
**Share-Based
Payment Arrangements**
The
Company accounts for share awards in accordance with FASB ASC Topic 718, CompensationStock Compensation, which requires
that all equity awards be accounted for at their fair value. Fair value is measured on the grant date and is equal to the
underlying value of the share. Costs equal to these fair values are recognized ratably over the requisite service period based on the
number of awards that are expected to vest, in the period of grant for awards that vest immediately and have no future service condition,
or in the period the awards vest immediately after meeting a performance condition becomes probable (i.e., the occurrence of a business
combination). For awards that vest over time, cumulative adjustments in later periods are recorded to the extent actual forfeitures differ
from the Companys initial estimates; previously recognized compensation cost is reversed if the service or performance conditions
are not satisfied and the award is forfeited.
**Recent
Accounting Pronouncements**
In
November 2023, the FASB issued ASU 2023-07, Segment reporting (Topic 280): Improvements to Reportable Segment Disclosures
(ASU 2023-07). The amendments in ASU 2023-07 require disclosures, on an annual and interim basis, of significant segment
expenses that are regularly provided to the chief operating decision maker (CODM), as well as the aggregate amount of other
segment items included in the reported measure of segment profit or loss. The ASU requires that a public entity disclose the title and
position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance
and deciding how to allocate resources. Public entities will be required to provide all annual disclosures currently required by Topic
280 in interim periods, and entities with a single reportable segment are required to provide all the disclosures required by the amendments
in ASU 2023-07 and existing segment disclosures in Topic 280. The ASU is effective for fiscal years beginning after December 15, 2023,
and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-07
on October 22, 2025, the date of its inception.
Management
does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material
effect on the Companys financial statements.
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-15 comprising a portion of this Annual Report, which are incorporated herein by reference.
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 to ensure that information required to be disclosed by us in our Exchange Act reports is recorded,
processed, summarized, and reported within the time periods specified in the SECs rules and forms, and that such information is
accumulated and communicated to our management, including our principal executive officer and principal financial officer or persons
performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
As
required by Rules 13a-15 and 15d-15 under the Exchange Act, our Chief Executive Officer and Chief Financial Officer carried out an evaluation
of the effectiveness of the design and operation of our disclosure controls and procedures as of December 31, 2025. Based upon their
evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures (as defined
in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were effective, accordingly, management believes that the financial statements
includedin this Annual Report present fairly in all material respects our financial position, results of operations and cash flows
for the period presented.
| 40 | |
| | |
**Managements
Report on Internal Controls Over Financial Reporting**
This
Annual Report on Form 10-K does not include a report of managements assessment regarding internal control over financial reporting
or an attestation report of our independent registered public accounting firm due to a transition period established by rules of the
SEC for newly public companies.
**Changes
in Internal Control over Financial Reporting**
There
were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange
Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting.
Item
9B. Other Information
None.
Item
9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Not
applicable.
PART
III
Item
10. Directors, Executive Officers and Corporate Governance
Directors
and Executive Officers
As
of the date of this Annual Report, our directors and officers are as follows:
| 
NAME | 
| 
AGE | 
| 
POSITION | |
| 
Paul Packer | 
| 
54 | 
| 
Chairman, Chief Executive Officer and Chief Financial
Officer | |
| 
John Horne | 
| 
59 | 
| 
Director | |
| 
Timothy Hasara | 
| 
62 | 
| 
Director | |
| 
Thomas Hicks Jr. | 
| 
48 | 
| 
Director | |
| 
Johnny DeStefano | 
| 
46 | 
| 
Director | |
The
experience of our directors and executive officers is as follows:
****
**Paul
Packer**has served as our Chief Executive Officer, Chief Financial Officer and Chairman of our board of directors since October
2025. Since 2001, Mr. Packer has served as the Managing Member of Globis Capital Advisors LLC, an investment advisory firm he founded.
From October 2017 until January 2022, Mr. Packer served as Chairman of The United States Commission for the Preservation of Americas
Heritage Abroad, a position to which he was first appointed by President Donald J. Trump. From June 2022 until February 2026, he served
on the board of directors of Forafric Global Plc (NASDAQ: AFRI), an integrated global business involved in the purchase, storage, transport,
processing and sale of agricultural commodities and related products. Since April 2020, he has served on the board of directors of Zedge,
Inc. (NYSE AMERICAN: ZDGE), a provider of content distribution platforms. Since 2016, Mr. Packer has served as a director of Elementor
Ltd., a privately held company that offers an intuitive, front-end site builder for WordPress. Previously, he served on the board of
directors of Wakingapp Ltd., an augmented reality technology company, until its sale to Scope AR and on the board of directors of Penguin
Digital, Inc., a mobile application developer, until its acquisition by Shutterfly Inc. Mr. Packer received a B.A. from Yeshiva University.
**John
Horne**has served on our board since the closing of our initial public offering. Mr. Horne is an entrepreneur and venture capitalist.
Over the past 25 years, Mr. Horne has had a diverse career in both the private and public sectors, including recently serving as both
Deputy Assistant to President Donald J. Trump and Deputy Chief of Staff to Vice President Michael R. Pence from May 2018 to October 2019.
From September 2019 until January 2022, Mr. Horne served as a member of The United States Commission for the Preservation of Americas
Heritage Abroad, a position to which he was first appointed by President Donald J. Trump. Mr. Horne is also the founder and President
of multiple successful private companies, and has served as President of Zurmos, Inc., a consulting company which focuses on providing
U.S. and international companies with strategic international market sector analyses, strategic expansion plans, risk and political stability
assessments and international government affairs plans, since founding the company in December 2006. Mr. Horne has significant political
experience, including serving as a Member of the Executive Roundtable of the Republican Governors Association since its inception in
2009, serving as a Senior Advisor to Governor Mike Huckabee during the 2008 Presidential campaign and working with the Trump Presidential
Finance and Transition and Inaugural Committees. He has also served as a Senior Advisor to Secretary of Commerce Don Evans and was appointed
by President George W. Bush to serve as the Executive Director of Export Assistance and Business Outreach for the International Trade
Administration. Mr. Horne holds an MBA degree from the University of Arkansas, a Finance degree from the University of Tulsa, and studied
International Business at the University of Salzburg, Austria.
| 41 | |
| | |
**Timothy
Hasara**has served on our board since the closing of our initial public offering. Since June 2021, Mr. Hasara has served as Founder
and Managing Partner of Sinnet Capital Management, a microcap value investment fund. Between 1994 and June 2021, Mr. Hasara managed an
institutional microcap fund with more than $1 billion in assets under management at Kennedy Capital Management. Mr. Hasara has a B.A.
in Business Administration from the University of Notre Dame and a Masters Degree in Management from Johns Hopkins University.
**Thomas
Hicks Jr.**has served on our board since the closing of our initial public offering. Since 2023, Mr. Hicks has served as Chairman
and Chief Executive Officer of 90 Degree North Holdings LLC, an investment and advisory firm. In April 2019, he co-founded and has since
served on the board of directors of Sempre, Inc., a global provider of resilient networks for critical infrastructure. In May 2023, he
co-founded and has since served on the board of directors of SpaceBilt, Inc., a leading innovator in dual use logistics for the space
economy. Since July 2024, he has also served as a partner and member of the advisory board of ENTRA1 Capital Holdings, an American global
energy production company. He served two terms as Co-Chairman of the Republican National Committee from February 2019 until January 2023,
and in February 2025 he was appointed by President Donald J. Trump to serve on the Presidents Intelligence Advisory Board. Previously,
Mr. Hicks was a partner of Hicks Holdings LLC, a family investment firm, focusing on equity investments in media, technology, consumer
brands, manufacturing and energy. Prior to that, he was an analyst at Greenhill & Co, LLC, a New York-based advisory and investment
firm. He previously served on the boards of Drilling Tools International, Resolute Energy Corporation, Carols Daughter Holdings,
Berkshire Resources LLC, Standard Industrial Manufacturing Partners LTD, and Sight Sciences, Inc. Mr. Hicks was on the national board
of the American Enterprise Institutes Enterprise Club and was a founding member for its Dallas chapter and served as Chapter Chair
of Young Presidents Organizations Dallas Chapter. Prior to that, Mr. Hicks was Chairman of Big Brothers Big Sisters of North Texas
Campaign for Children in Crisis, successfully raising more than $35 million to support mentoring for children in Dallas Fort Worth. Mr.
Hicks also served on the board of Big Brothers Big Sisters of North Texas and the board of the SM Wright Foundation, organized to engage
with the citizens in the Fair Park area of Dallas. Mr. Hicks, a former Golden Gloves boxer, graduated from the University of Texas at
Austin.
**Johnny
DeStefano**has served on our board since the closing of our initial public offering. Since May 2019, Mr. DeStefano serves as a
President and Founder of Utility Strategic Advisors, where he helps a diverse set of clients navigate an increasingly complex Washington.
Between January 2017 and May 2019, Mr. DeStefano served in the Trump Administration, first as Assistant to the President and Director
of Presidential Personnel (PPO), and later as an Assistant to the President and Counselor to the President. In addition to PPO, as Counselor
to the President, Mr. DeStefano oversaw the Offices of Intergovernmental Affairs, Public Liaison, and Political Affairs. Prior to the
White House, Mr. DeStefano was President and Chief Executive Officer of Data Trust, a right of center voter file and political data company.
Mr. DeStefano helped grow Data Trust to become the premier data organization on the right, providing the foundational data that powered
President Trumps historic 2016 victory and Republican majorities in both the House and Senate. In addition, between January 2011
and July 2013, Mr. DeStefano served as a Senior Advisor to House Speaker John Boehner and held leadership roles between January 2007
and January 2011 at the National Republican Congressional Committee and the House Republican Conference. In 2006, Mr. DeStefano managed
the campaign of then House Conference Chair Deborah Pryce. Mr. DeStefano has served on the board of the National Park Foundation since
January 2019 and served on the board of the Fulbright Scholarship Program between June 2019 and September 2021 as an appointee of the
President. He has a B.A. from Saint Louis University.
**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 10 years that are material to an evaluation
of the ability or integrity of any director or officer.
| 42 | |
| | |
**Number,
Terms of Office and Election of Executive Officers and Directors**
****
Our
board of directors is divided into three classes, with only one class of directors being elected in each year, and with each class (except
for those directors appointed prior to our first annual general meeting) serving a three-year term. The term of office of the first class
of directors, consisting of John Horne, will expire at our first annual general meeting. The term of office of the second class of directors,
consisting of Johnny DeStefano and Thomas Hicks Jr., will expire at our second annual general meeting. The term of office of the third
class of directors, consisting of Paul Packer and Timothy Hasara, will expire at our third annual general meeting.
We
may not hold an annual general meeting until after we consummate our initial business combination. In accordance with NYSE corporate
governance requirements, we are not required to hold an annual general meeting until no later than one year after our first fiscal year
end following our listing on NYSE American. Further, as a Cayman Islands exempted company, there is no requirement under the Companies
Act for us to hold an annual meeting of shareholders to elect new directors prior to the consummation of our initial business combination.
Holders of our founder shares have the right to elect all of our directors or remove any one of them for any reason prior to consummation
of our initial business combination and holders of our public shares do not have the right to vote on the appointment or removal of directors
during such time. These provisions of our amended and restated memorandum and articles of association may only be amended if approved
by a special resolution passed by a majority of at least 90% (or, where such amendment is proposed in respect of the consummation of
our initial business combination, two-thirds) of our ordinary shares voting at the applicable general meeting.
Our
executive officers are elected by our board of directors and serve at the discretion of the board of directors, rather than for specific
terms of office. Our board of directors and the holders of our Class B ordinary shares are authorized to appoint persons to the offices
set forth in our amended and restated memorandum and articles of association as it deems appropriate.
Committees
of the Board of Directors
Our
board of directors has three standing committees: an audit committee, a compensation committee and a nominating and corporate governance
committee. Subject to phase-in rules and a limited exception, the rules of NYSE and Rule 10A-3 of the Exchange Act require that the audit
committee of a listed company be comprised solely of independent directors, and the rules of NYSE require that the compensation committee
and the nominating and corporate governance committee of a listed company be comprised solely of independent directors. Each committee
operates under a charter that was approved by our board and has the composition and responsibilities described below. The charter of
each committee is available on our website at www.unitedacqcorp1.com.
*Audit
Committee*
**
We
have established an audit committee of the board of directors. Messrs. Hasara, Hicks and Horne currently serve as members of our audit
committee. Mr. Horne serves as the chairperson of the audit committee. Under NYSE listing standards and applicable SEC rules, we are
required to have at least three members of the audit committee, all of whom must be independent. Each of Messrs. Hasara, Hicks and Horne
are independent. Each member of the audit committee is financially literate and our board of directors has determined that Mr. Hasara
qualifies as an audit committee financial expert as defined in applicable SEC rules.
We
have adopted an audit committee charter, which details the purpose and principal functions of the audit committee, including:
| 
| 
| 
assisting the
board of directors in the oversight of (1) the accounting and financial reporting processes of the Company and the audits of the
financial statements of the Company, (2) the preparation and integrity of the financial statements of the Company, (3) the compliance
by the Company with financial statement and regulatory requirements, (4) the performance of the Companys internal finance
and accounting personnel and its independent registered public accounting firms, and (5) the qualifications and independence of the
Companys independent registered public accounting firms | |
| 
| 
| 
| |
| 
| 
| 
reviewing with each of
the internal and independent registered public accounting firms the overall scope and plans for audits, including authority and organizational
reporting lines and adequacy of staffing and compensation | |
| 43 | |
| | |
| 
| 
| 
reviewing and
discussing with management and internal auditors the Companys system of internal control and discussing with the independent
registered public accounting firm any significant matters regarding internal controls over financial reporting that have come to
its attention during the conduct of its audit | |
| 
| 
| 
| |
| 
| 
| 
reviewing and discussing
with management, internal auditors and the independent registered public accounting firm the Companys financial and critical
accounting practices, and policies relating to risk assessment and management | |
| 
| 
| 
| |
| 
| 
| 
receiving and reviewing
reports of the independent registered public accounting firm and discussing (1) all critical accounting policies and practices to
be used in the firms audit of the Companys financial statements, (2) all alternative treatments of financial information
within U.S. GAAP that have been discussed with management, ramifications of the use of such alternative disclosures and treatments,
and the treatment preferred by the independent registered public accounting firm, and (3) other material written communications between
the independent registered public accounting firm and management, such as any management letter or schedule of unadjusted differences | |
| 
| 
| 
| |
| 
| 
| 
reviewing and discussing
with management and the independent registered public accounting firm the annual and quarterly financial statements and section entitled
Managements Discussion and Analysis of Financial Condition and Results of Operations of the Company prior
to the filing of the Companys Annual Report on Form 10-K and Quarterly Reports on Form 10-Q | |
| 
| 
| 
| |
| 
| 
| 
reviewing, or establishing,
standards for the type of information and the type of presentation of such information to be included in, earnings press releases
and earnings guidance provided to analysts and rating agencies | |
| 
| 
| 
| |
| 
| 
| 
discussing with management
and the independent registered public accounting firm any changes in the Companys critical accounting principles and the effects
of alternative U.S. GAAP methods, off-balance sheet structures and regulatory and accounting initiatives | |
| 
| 
| 
| |
| 
| 
| 
reviewing material pending
legal proceedings involving the Company and other contingent liabilities | |
| 
| 
| 
| |
| 
| 
| 
meeting periodically with
the Chief Executive Officer, Chief Financial Officer, the senior internal auditing executive and the independent registered public
accounting firm in separate executive sessions to discuss results of examinations | |
| 
| 
| 
| |
| 
| 
| 
reviewing and approving
all transactions between the Company and related parties or affiliates of the officers of the Company requiring disclosure under
Item 404 of Regulation S-K prior to the Company entering into such transactions | |
| 
| 
| 
| |
| 
| 
| 
establishing procedures
for the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls
or auditing matters, and the confidential, anonymous submissions by employees or contractors of concerns regarding questionable accounting
or accounting matters | |
| 
| 
| 
| |
| 
| 
| 
reviewing periodically
with the Companys management, independent registered public accounting firm and outside legal counsel (i) legal and regulatory
matters which may have a material effect on the financial statements, and (ii) corporate compliance policies or codes of conduct,
including any correspondence with regulators or government agencies and any employee complaints or published reports that raise material
issues regarding the Companys financial statements or accounting policies and any significant changes in accounting standards
or rules promulgated by the FASB, the SEC or other regulatory authorities and | |
| 
| 
| 
| |
| 
| 
| 
establishing policies for
the hiring of employees and former employees of the independent registered public accounting firm. | |
| 44 | |
| | |
****
*Compensation
Committee*
**
We
have established a compensation committee of the board of directors. Messrs. Hicks, DeStefano and Horne currently serve as members of
our compensation committee. Mr. Hicks serves as the chairperson of the compensation committee. Our board of directors has determined
that each of Messrs. Hicks, DeStefano and Horne are independent.
We
have adopted a compensation committee charter, which details the purpose and principal functions of the compensation committee, including:
| 
| 
| 
reviewing the
performance of the Chief Executive Officer and executive management | |
| 
| 
| 
| |
| 
| 
| 
assisting the board of
directors in developing and evaluating potential candidates for executive positions (including Chief Executive Officer) | |
| 
| 
| 
| |
| 
| 
| 
reviewing and approving
goals and objectives relevant to the Chief Executive Officer and other executive officer compensation, evaluating the Chief Executive
Officers and other executive officers performance in light of these corporate goals and objectives, and setting the
Chief Executive Officer and other executive officer compensation levels consistent with its evaluation and the company philosophy | |
| 
| 
| 
approving the salaries,
bonus and other compensation for all executive officers | |
| 
| 
| 
| |
| 
| 
| 
reviewing and approving
compensation packages for new corporate officers and termination packages for corporate officers as requested by management | |
| 
| 
| 
| |
| 
| 
| 
reviewing and discussing
with the board of directors and senior officers plans for officer development and corporate succession plans for the Chief Executive
Officer and other senior officers | |
| 
| 
| 
| |
| 
| 
| 
reviewing and making recommendations
concerning executive compensation policies and plans | |
| 
| 
| 
| |
| 
| 
| 
reviewing and recommending
to the board of directors the adoption of or changes to the compensation of the Companys directors | |
| 
| 
| 
| |
| 
| 
| 
reviewing and approving
the awards made under any executive officer bonus plan, and providing an appropriate report to the board of directors | |
| 
| 
| 
| |
| 
| 
| 
reviewing and making recommendations
concerning long-term incentive compensation plans, including the use of stock options and other equity-based plans, and, except as
otherwise delegated by the board of directors, acting as the Plan Administrator for equity-based and employee benefit
plans | |
| 
| 
| 
| |
| 
| 
| 
approving all special perquisites,
special cash payments and other special compensation and benefit arrangements for the Companys executive officers and employees | |
| 
| 
| 
| |
| 
| 
| 
reviewing periodic reports
from management on matters relating to the Companys personnel appointments and practices | |
| 
| 
| 
| |
| 
| 
| 
assisting management in
complying with the Companys proxy statement and annual report disclosure requirements | |
| 
| 
| 
| |
| 
| 
| 
issuing an annual Report
of the Compensation Committee on Executive Compensation for the Companys annual proxy statement in compliance with applicable
SEC rules and regulations | |
| 
| 
| 
| |
| 
| 
| 
annually evaluating the
committees performance and the committees charter and recommending to the board of directors any proposed changes to
the charter or the committee and | |
| 
| 
| 
| |
| 
| 
| 
undertaking all further
actions and discharge all further responsibilities imposed upon the compensation committee from time to time by the board of directors,
the federal securities laws or the rules and regulations of the SEC. | |
| 45 | |
| | |
The
charter also provides that the compensation committee may, in its sole discretion, retain or obtain the advice of a compensation consultant,
independent legal counsel or other advisor 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
advisor, the compensation committee will consider the independence of each such adviser, including the factors required by NYSE and the
SEC.
Nominating
and Corporate Governance Committee
We
have established a nominating and corporate governance committee of the board of directors. Messrs. DeStefano, Hasara and Hicks currently
serve as members of our nominating and corporate governance committee. Mr. DeStefano serves as the chairperson of the nominating and
corporate governance committee. Under NYSE listing standards and applicable SEC rules, all members of the nominating and corporate governance
committee must be independent. Our board of directors has determined that each of Messrs. DeStefano, Hasara and Hicks are independent.
We
have adopted a nominating and corporate governance committee charter, which details the purpose and responsibility of the nominating
and corporate governance committee, including:
| 
| 
| 
identifying,
screening and reviewing individuals qualified to serve as directors, consistent with criteria approved by the board of directors,
and recommending to the board of directors candidates for nomination for election at the annual meeting of shareholders or to fill
vacancies on the board of directors; | |
| 
| 
| 
| |
| 
| 
| 
developing and recommending
to the board of directors and overseeing implementation of our corporate governance guidelines; | |
| 
| 
| 
| |
| 
| 
| 
coordinating and overseeing
the annual self-evaluation of the board of directors, its committees, individual directors and management in the governance of the
company; and | |
| 
| 
| 
| |
| 
| 
| 
reviewing on a regular
basis our overall corporate governance and recommending improvements as and when necessary. | |
The
charter also provides that the nominating and corporate governance committee may, in its sole discretion, retain or obtain the advice
of, and terminate, any search firm to be used to identify director candidates, and will be directly responsible for approving the search
firms fees and other retention terms.
**Director
Nominations**
****
Our
nominating and corporate governance committee will recommend to the board of directors candidates for nomination for election at the
annual meeting of the shareholders. 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 do not have the right to recommend director candidates for nomination to our board of directors.
****
| 46 | |
| | |
****
Code
of Ethics
We
have adopted a code of conduct and ethics applicable to our directors, officers and employees in accordance with applicable federal securities
laws (our Code of Ethics). A copy of our Code of Ethics is available on our website at www.unitedacqcorp1.com. Our Code
of Ethics is a code of ethics, as defined in Item 406(b) of Regulation S-K. 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 NYSE 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 Annual 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.
Insider
Trading Policy
On
January 28, 2026, we adopted insider trading policies and procedures 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 NYSE listing rules (the Insider Trading Policy).
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 as Exhibit 19 to this Annual Report and is incorporated herein
by reference.
**Compensation
Committee Interlocks and Insider Participation**
****
None
of our officers currently serves, or in the past year has served, as a member of the compensation committee of any entity that has one
or more officers serving on our board of directors.
**Conflicts
of Interest**
****
Under
Cayman Islands law, directors and officers owe the following fiduciary duties:
| 
| 
| 
duty
to act in good faith in what the director or officer believes to be in the best interests of the company as a whole | |
| 
| 
| 
| |
| 
| 
| 
duty
to exercise powers for the purposes for which those powers were conferred and not for a collateral purpose | |
| 
| 
| 
| |
| 
| 
| 
directors
should not improperly fetter the exercise of future discretion | |
| 
| 
| 
| |
| 
| 
| 
duty
to exercise authority for the purpose for which it is conferred and a duty to exercise powers fairly as between different sections
of shareholders | |
| 
| 
| 
| |
| 
| 
| 
duty
not to put themselves in a position in which there is a conflict between their duty to the company and their personal interests
and | |
| 
| 
| 
| |
| 
| 
| 
duty
to exercise independent judgment. | |
In
addition to the above, directors also owe a duty of care which is not fiduciary in nature. This duty has been defined as a requirement
to act as a reasonably diligent person having both the general knowledge, skill and experience that may reasonably be expected of a person
carrying out the same functions as are carried out by that director in relation to the company and the general knowledge skill and experience
of that director.
| 47 | |
| | |
As
set out above, directors have a duty not to put themselves in a position of conflict and this includes a duty not to engage in self-dealing,
or to otherwise benefit as a result of their position. However, in some instances what would otherwise be a breach of this duty can be
forgiven and/or authorized in advance by the shareholders provided that there is full disclosure by the directors. This can be done by
way of permission granted in the amended and restated memorandum and articles of association or alternatively by shareholder approval
at shareholder meetings.
Certain
of our officers and directors presently have, and any of them in the future may have additional, fiduciary or contractual obligations
to other entities, including entities that are affiliates of our Sponsor, pursuant to which such officer or director is or will be required
to present a business combination opportunity to such entity. 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 may honor his or her fiduciary or contractual obligations to present such business combination opportunity to such entity. Our
amended and restated memorandum and articles of association 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 unless such opportunity is expressly offered
to such director or officer in their capacity as a director or officer of the company and the opportunity is one the company is legally
and contractually permitted to undertake and would otherwise be reasonable for the company to pursue or (b) the presentation of which
would breach an existing legal obligation of a director or officer to any other entity. However, we do not believe that any potential
conflicts would materially affect our ability to complete our initial business combination.
Below
is a table summarizing the entities to which our executive officers and directors currently have fiduciary duties, contractual obligations
or other material management relationships:
| 
INDIVIDUAL | 
| 
ENTITY | 
| 
ENTITYS
BUSINESS | 
| 
AFFILIATION | |
| 
Paul Packer | 
| 
Globis Capital Advisors, LLC (and affiliated entities) | 
| 
Investment Advisory | 
| 
Founder and Managing Member | |
| 
| 
| 
Zedge, Inc. | 
| 
Digital Media | 
| 
Director | |
| 
| 
| 
Elementor Ltd. | 
| 
Software | 
| 
Director | |
| 
| 
| 
United Acquisition Corp. II | 
| 
Special Purpose Acquisition Company | 
| 
Chief Executive Officer, Chief Financial Officer and
Chairman | |
| 
John Horne | 
| 
Zurmos, Inc. | 
| 
Software | 
| 
Founder and President | |
| 
Timothy Hasara | 
| 
Sinnet Capital Management | 
| 
Asset Management | 
| 
Founder and Managing Partner | |
| 
Thomas Hicks Jr. | 
| 
90 Degree North Holdings LLC | 
| 
Investment Holding Company | 
| 
Founder, Chairman and Chief Executive Officer | |
| 
| 
| 
Sempre, Inc. | 
| 
Telecommunication | 
| 
Co-Founder and Director | |
| 
| 
| 
SpaceBilt, Inc. | 
| 
Aerospace | 
| 
Co-Founder and Director | |
| 
Johnny DeStefano | 
| 
Utility Strategic Advisors | 
| 
Consulting | 
| 
Founder and President | |
| 
| 
| 
National Park Foundation | 
| 
Nonprofit | 
| 
Director | |
| 
| 
| 
M1 Solutions, LLC | 
| 
Consulting | 
| 
Partner | |
Shareholders
should also be aware of the following other potential conflicts of interest:
| 
| 
| 
Our
executive officers and directors are not required to, and will not, commit their full time to our affairs, which may result in a
conflict of interest in allocating their time between our operations and our search for a business combination and their other businesses.
We do not intend to have any full-time employees prior to the completion of our initial business combination. Each of our executive
officers is engaged in several other business endeavors for which he may be entitled to substantial compensation, and our executive
officers are not obligated to contribute any specific number of hours per week to our affairs. Further, our Sponsor and our officers
and directors 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. Any such companies, businesses or investments
may present additional conflicts of interest in pursuing an initial business combination. However, we do not believe that any such
potential conflicts would materially affect our ability to complete our initial business combination. | |
| 48 | |
| | |
| 
| 
| 
Our
Sponsor subscribed for founder shares prior to the initial public offering and purchased private placement units and private
placement warrants in a transaction that closed simultaneously with the closing of the initial public offering. Our Sponsor and our
management team have entered into an agreement with us, pursuant to which they have agreed to waive their redemption rights with
respect to their founder shares, private placement shares included in any private placement units and public shares in connection
with (i) the completion of our initial business combination and (ii) the implementation by the directors of, following a shareholder
vote to approve, an amendment to our amended and restated memorandum and articles of association (A) that would modify the substance
or timing of our obligation to provide holders of our Class A ordinary shares the right to have their shares redeemed 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 completion window or (B) with respect to any other provision relating to the rights of holders of our Class A ordinary
shares. Additionally, our Sponsor and each member of our management team have agreed to waive their rights to liquidating
distributions from the trust account with respect to their founder shares and their private placement units if we fail to complete
our initial business combination within the required time period. Except as described herein, our Sponsor and our management team
have agreed not to transfer, assign or sell any of their founder shares until the earliest of (A) 180 days after the completion of
our initial business combination and (B) subsequent to our initial business combination, the date on which we complete a
liquidation, merger, share exchange, reorganization or other similar transaction that results in all of our public shareholders
having the right to exchange their ordinary shares for cash, securities or other property. With certain limited exceptions, the
private placement units and private placement warrants (and any private placement share or private placement warrant included in
such private placement units) will not be transferable until 30 days following the completion of our initial business combination.
Except as described herein, our Sponsor, directors and officers also agreed not to transfer any of their securities until 180 days
following the date of this Annual Report. Because each of our executive officers and directors own ordinary shares and/or private
placement units (including their underlying securities) directly or indirectly, they 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. | |
| 
| 
| 
| |
| 
| 
| 
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. 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 do not complete our initial business
combination within the completion window, the founder shares, private placement units and private placement warrants held by our
Sponsor may lose most of their value, except to the extent that the founder shares or the Class A ordinary shares included in the
private placement units 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. Similarly, additional conflicts of interests may arise and incentives
may be created to select an acquisition target that subsequently declines in value and is unprofitable for public shareholders instead
of not consummating a business combination if (i) after the redemption of public shareholders no assets are available outside of
the trust account to repay any loans extended to us by our Sponsor, affiliates of our Sponsor or our officers and directors and to
reimburse our Sponsor and others for any out-of-pocket expenses incurred in connection with identifying, investigating and completing
an initial business combination or (ii) not consummating a business combination within the allotted time may require service providers
to forfeit their fees. | |
| 49 | |
| | |
We
are not prohibited from pursuing an initial business combination with a company that is affiliated with our Sponsor, officers, directors
or advisors (or their respective affiliates or related entities). In the event we seek to complete our initial business combination with
a company that is affiliated (as defined in our amended and restated memorandum and articles of association) with our Sponsor, officers,
advisors or directors, we, or a committee of independent directors, will obtain an opinion from an independent entity that commonly renders
valuation opinions that our initial business combination is fair to our company from a financial point of view.
We
cannot assure our public shareholders that any of the above-mentioned conflicts will be resolved in our favor.
If
we seek shareholder approval, we will complete our initial business combination only if a majority of the ordinary shares, represented
in person or by proxy and entitled to vote thereon, voted at a shareholder meeting are voted in favor of the business combination. In
such case, our Sponsor and each member of our management team have agreed to vote their founder shares, private placement shares included
in any private placement units and public shares purchased during or after the initial public offering in favor of our initial business
combination (except with respect to any such public shares which may not be voted in favor of approving the business combination transaction
in accordance with the requirements of Rule 14e-5 under the Exchange Act and any SEC interpretations or guidance relating thereto).
Item
11. Executive Compensation.
None
of our officers or directors have received any cash compensation for services rendered to us. We pay our Sponsor up to $20,000 per month
for office space, administrative and support services. Our Sponsor, officers and directors, or any of their respective affiliates, will
be reimbursed for any out-of-pocket expenses incurred in connection with activities on our behalf such as identifying potential target
businesses and performing due diligence on suitable business combinations. Our audit committee will review on a quarterly basis all payments
that were made to our Sponsor, officers, directors or our or any of their affiliates.
After
the completion of 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 shareholders, to the extent then known, in
the tender offer materials or proxy solicitation materials furnished to our shareholders in connection with a proposed business combination.
It is unlikely the amount of such compensation will be known at the time, as it will be up to the directors of the post-combination business
to determine executive and director compensation. Any compensation to be paid to our officers will be determined, or recommended to our
board of directors for determination, either by a committee constituted solely of independent directors or by a majority of the independent
directors on our board of directors.
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 the 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.
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 available to us as of March 30, 2026,
with respect to the beneficial ownership of our ordinary shares, by:
| 
| 
| 
each
person known by us to be the beneficial owner of more than 5% of our outstanding ordinary shares | |
| 
| 
| 
| |
| 
| 
| 
each
of our officers and directors that beneficially owns our ordinary shares and | |
| 
| 
| 
| |
| 
| 
| 
all our
officers and directors as a group. | |
| 50 | |
| | |
In
the table below, percentage ownership is based on 13,853,680 shares of our ordinary shares, consisting of (i) 10,459,580 Class A ordinary
shares and (ii) 3,394,100 Class B ordinary shares, issued and outstanding as of March 30, 2026. On all matters to be voted upon, except
for the election of directors of the board, 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.
Unless
otherwise indicated, we believe that all persons named in the table have sole voting and investment power with respect to all shares
of ordinary shares beneficially owned by them. The following table does not reflect record or beneficial ownership of the private placement
warrants as these warrants are not exercisable within 60 days of the date of this Annual Report.
| 
| | 
Class
B Ordinary Shares | | | 
Class
A Ordinary Shares | | | 
Approximate
Percentage | | |
| 
Name
and Address of Beneficial Owner(1) | | 
Number
of Shares Beneficially Owned(2) | | | 
Approximate
Percentage of Class | | | 
Number
of Shares Beneficially Owned | | | 
Approximate
Percentage of Class | | | 
of Total Outstanding Ordinary Shares | | |
| 
United Acquisition
SPAC LLC(3) | | 
| 3,294,100 | | | 
| 97.1 | % | | 
| 175,457 | | | 
| 1.7 | % | | 
| 25.0 | % | |
| 
Paul Packer(3) | | 
| 3,294,100 | | | 
| 97.1 | % | | 
| 175,457 | | | 
| 1.7 | % | | 
| 25.0 | % | |
| 
John Horne | | 
| 25,000 | | | 
| * | | | 
| - | | | 
| - | | | 
| * | | |
| 
Timothy Hasara(4) | | 
| 25,000 | | | 
| * | | | 
| - | | | 
| - | | | 
| * | | |
| 
Thomas Hicks Jr. | | 
| 25,000 | | | 
| * | | | 
| - | | | 
| - | | | 
| * | | |
| 
Johnny DeStefano | | 
| 25,000 | | | 
| * | | | 
| - | | | 
| - | | | 
| * | | |
| 
All officers and directors
as a group (five individuals) | | 
| 3,394,100 | | | 
| 100 | % | | 
| 175,457 | | | 
| 1.7 | % | | 
| 25.8 | % | |
| 
Other 5%
Shareholders | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
MM Asset Management Inc.(5) | | 
| - | | | 
| - | | | 
| 1,050,000 | | | 
| 10.0 | % | | 
| 7.6 | % | |
| 
Harraden Circle Investments,
LLC(6) | | 
| - | | | 
| - | | | 
| 1,000,000 | | | 
| 9.6 | % | | 
| 7.2 | % | |
| 
RP Investment Advisors LP(7) | | 
| - | | | 
| - | | | 
| 925,000 | | | 
| 8.8 | % | | 
| 6.7 | % | |
| 
* | 
less
than 1% | |
| 
| 
| |
| 
(1) | 
Unless
otherwise noted, the principal business address of the following entities or individuals is c/o United Acquisition Corp. I, 7100
W. Camino Real, Suite 302-48, Boca Raton, Florida 33433. | |
| 
| 
| |
| 
(2) | 
Interests
shown consist of founder shares, classified as Class B ordinary shares. Such shares will automatically convert into Class A ordinary
shares at the time of our initial business combination or earlier at the option of the holder on a one-for-one basis, subject to
adjustment. | |
| 
| 
| |
| 
(3) | 
United
Acquisition SPAC LLC is the record holder of the shares reported herein. Paul Packer, our Chairman, Chief Executive Officer and Chief
Financial Officer, is the sole managing member of United Acquisition SPAC LLC, our Sponsor. Accordingly, all shares held by our Sponsor
may be deemed to be beneficially owned by Mr. Packer. Mr. Packer disclaims beneficial ownership of such securities except to the
extent of his pecuniary interest therein. | |
| 
| 
| |
| 
(4) | 
Does
not include any shares indirectly owned by this individual as a result of his direct or indirect ownership interest in our Sponsor. | |
| 
| 
| |
| 
(5) | 
According
to a Schedule 13G filed with the SEC on February 5, 2026, by MMCAP International Inc. SPC and MM Asset Management Inc. The principal
address of MMCAP International Inc. SPC 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 address of MM Asset Management Inc. is 161 Bay Street, TD Canada Trust
Tower, Suite 2240, Toronto, Ontario M5J 2S1, Canada. | |
| 
| 
| |
| 
(6) | 
According
to a Schedule 13G filed with the SEC on February 5, 2026, by Harraden Circle Investments, LLC (Harraden Adviser), Harraden
Circle Investors GP, LP (Harraden GP), Harraden Circle Investors GP, LLC (Harraden LLC), Frederick V.
Fortmiller, Jr. and each of Harraden Circle Investors, LP, Harraden Circle Special Opportunities, LP, Harraden Circle Strategic Investments,
LP, Harraden Circle Concentrated, LP (collectively, the Harraden Funds). The reported shares are directly beneficially
owned by the Harraden Funds. Harraden GP is the general partner of each of the Harraden Funds, and Harraden LLC is the general partner
Harraden GP. Harraden Adviser serves as investment manager to each of the Harraden Funds. 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 reported shares. The principal business address of each reporting person is 885
Third Avenue, Suite 2600B, New York, New York 10022. | |
| 
| 
| |
| 
(7) | 
According
to a Schedule 13G filed with the SEC on February 20, 2026, by RP Investment Advisors LP and each of RP Select Opportunities Master
Fund Ltd., RP Debt Opportunities Fund Ltd., RP Alternative Global Bond Fund and RP Alternative Credit Opportunities Fund (collectively,
the RP Funds). The reported shares are directly beneficially owned by the RP Funds. RP Investment Advisors LP is the
investment advisor of, and may be deemed to beneficially own the securities owned by, the Funds. The principal business address of
each reporting person is 39 Hazelton Avenue, Toronto, Ontario M5R 2E3, Canada. | |
| 51 | |
| | |
Item
13. Certain Relationships and Related Transactions, and Director Independence
On
October 24, 2025, our Sponsor purchased 2,875,000 Class B ordinary shares from us for an aggregate purchase price of $25,000, or approximately
$0.009 per share. We subsequently effected a share dividend of approximately 0.33 shares for each Class B ordinary share outstanding,
resulting in the Sponsor holding an aggregate of 3,833,333 founder shares. Prior to the initial public offering, our Sponsor transferred
25,000 founder shares to each of our independent directors, in each case at the same per-share purchase price paid by our Sponsor. As
of March 16, 2026, the underwriters elected to only partially exercise the over-allotment option and the option expired, and 439,233
founder shares were cancelled, resulting in the Sponsor holding an aggregate of 3,294,100 founder shares. The number of founder shares
and the forfeiture mechanism underlying the founder shares was determined in order to ensure that such founder shares would represent
25% of the outstanding ordinary shares upon completion of the initial public offering (not including the Class A ordinary shares underlying
the private placement units). The founder shares (including the Class A ordinary shares issuable upon exercise thereof) may not, subject
to certain limited exceptions, be transferred, assigned or sold by the holder.
Our
Sponsor purchased an aggregate 175,457 private placement units for a purchase price of $10.00 per unit, including 175,000 units purchased
in a private placement that occurred simultaneously with the closing of the initial public offering and an additional 457 units purchased
in a private placement that occurred simultaneously with the underwriters partial exercise of their over-allotment option. Our
Sponsor also purchased an aggregate 2,339,393 private placement warrants for a purchase price of $0.75 per warrant, including 2,333,333
warrants purchased in a private placement that occurred simultaneously with the closing of the initial public offering and an additional
6,060 warrants purchased in a private placement that occurred simultaneously with the underwriters partial exercise of their over-allotment
option. The private placement warrants will become exercisable on the later of the consummation of our initial business combination and
January 30, 2027. The private placement units and private placement warrants (including the Class A ordinary shares issuable upon exercise
of the private placement warrants) will not be transferable, assignable or salable until 30 days after the completion of our initial
business combination, subject to certain limited exceptions. The Private Placement Warrants will be non-redeemable and exercisable for
cash or on a cashless basis. The private placement units and the private placement warrants, as well as their underlying
securities, may not, subject to certain limited exceptions, be transferred, assigned or sold by their respective holders until 30 days
after the completion of the business combination.
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 may be required to honor his or her fiduciary or contractual obligations
to present such business combination opportunity to such other entity. Our officers and directors currently have certain relevant fiduciary
duties or contractual obligations that may take priority over their duties to us.
Commencing
on January 28, 2026, we reimburse an affiliate of our Sponsor in an amount equal to $20,000 per month for office space, utilities and
secretarial and administrative support made available to us. Upon completion of our initial business combination or our liquidation,
we will cease paying these monthly fees.
Our
Sponsor, officers and directors, or any of their respective affiliates, are reimbursed for any out-of-pocket expenses incurred in connection
with activities on our behalf such as identifying potential target businesses and performing due diligence on suitable business combinations.
Our board of directors may also approve the payment of advisory fees to directors in connection with such activities, including board
committee service and extraordinary administrative and analytical services. Our audit committee will review on a quarterly basis all
payments that were made to our Sponsor, officers, directors or our or any of their affiliates and will determine which expenses and the
amount of expenses that will be reimbursed. There is no cap or ceiling on the reimbursement of out-of-pocket expenses incurred by such
persons in connection with activities on our behalf.
| 52 | |
| | |
On
October 24, 2025, our Sponsor agreed to loan us up to $300,000 to cover expenses related to our initial public offering pursuant to a
promissory note, which was amended and restated on November 26, 2025, to increase the principal amount to $500,000. Such loans and advances
were non-interest bearing and payable on the earlier of April 23, 2026 or the completion of our initial public offering. On January 30,
2026, the outstanding balance under the promissory note was $97,670.74, the entirety of which was repaid upon the consummation of our
initial public offering. As of December 31, 2025, there was no outstanding balance on the promissory note and borrowings under the promissory
note were no longer available.
In
addition, in order to finance transaction costs in connection with an intended initial business combination, our Sponsor, officers, directors,
or their affiliates may, but are not obligated to, loan us funds as may be required. If we consummate our initial business combination,
we would repay such loaned amounts. In the event that the initial business combination does not close, we may use a portion of the offering
proceeds held outside the trust account to repay such loaned amounts but no proceeds from our trust account would be used to repay such
loaned amounts. Up to $1,500,000 of such loans may be convertible into additional units of the post-business combination entity at a
price of $10.00 per unit at the option of the lender, which could result in a material dilution to the public shareholders equity
interests. The units would be identical to the private placement units. Except as set forth above, the terms of such loans by our officers
and directors, if any, have not been determined and no written agreements exist with respect to such loans. After the completion of 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 shareholders, to the extent then known, in the tender offer materials
or proxy solicitation materials furnished to our shareholders in connection with a proposed business combination. It is unlikely the
amount of such compensation will be known at the time, as it will be up to the directors of the post-combination business to determine
executive and director compensation. Any compensation to be paid to our officers will be determined, or recommended to our board of directors
for determination, either by a committee constituted solely of independent directors or by a majority of the independent directors on
our board of directors.
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 tender
offer or proxy solicitation 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 shareholder meeting held to consider our initial
business combination, as applicable, as it will be up to the directors of the post-combination business to determine executive and director
compensation.
The
holders of our (i) founder shares, (ii) private placement units (including any units issued upon conversion of working capital loans)
and (iii) private placement warrants (and all underlying securities) are entitled to registration rights pursuant to the Registration
Rights Agreement, dated January 28, 2026, among such holders and the company, requiring us to register such securities for resale. The
holders of a majority of these securities are entitled to make up to three demands that we register such securities and may elect to
exercise these registration rights at any time after we consummate a business combination. In addition, the holders have certain piggy-back
registration rights with respect to registration statements filed subsequent to our consummation of a business combination. We will bear
the expenses incurred in connection with the filing of any such registration statements.
Our
Sponsor, directors and officers have also entered into a letter agreement with us, pursuant to which they have agreed to waive their
rights to liquidating distributions from the trust account with respect to their founder shares and private placement shares if we fail
to complete our business combination within the completion window. 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 business combination within the completion window.
Additionally,
pursuant to the Insider Letter Agreement, dated January 28, 2026, among the company, its directors and officers and our Sponsor, the
companys directors, officers and our Sponsor will not propose any amendment to our amended and restated memorandum and articles
of association (i) to modify the substance or timing of our obligation to allow redemption of 100% of our public shares if we do not
complete our initial business combination with the completion window, or (ii) with respect to any other material provision 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 (which shall be net of permitted
withdrawals), divided by the number of then outstanding public shares.
| 53 | |
| | |
Policy
for Approval of Related Party Transactions
We
have adopted a Related Party Transactions Policy, providing for the review, approval and/or ratification of related party transactions,
which are those transactions required to be disclosed pursuant to Item 404 of Regulation S-K. Under the Related Party Transactions Policy,
proposed related party transactions must be reported to our Chief Executive Officer for evaluation, who shall report the transaction
to the audit committee for its approval as necessary. The audit committee will consider all relevant factors when determining whether
to approve a related party transaction, including whether the related party transaction is on terms no less favorable to us than terms
generally available from an unaffiliated third party under the same or similar circumstances and the extent of the related partys
interest in the transaction. No director may participate in the approval of any transaction in which he is a related party, and that
director is required to provide the audit committee with all material information concerning the transaction. The committee will approve
the related party transaction only if it determines in good faith that, under all of the circumstances, the transaction is in the best
interests of the Company and its shareholders. The committee, in its sole discretion, may impose such conditions as it deems appropriate
on the Company or the related party in connection with the approval of the related party transaction.
**Director
Independence**
****
NYSE
requires that a majority of our board must be composed of independent directors, which is defined generally as a person
other than an executive officer or employee of the Company or its subsidiaries or any other individual having a relationship, which,
in the opinion of the Companys board of directors would interfere with the directors exercise of independent judgment in
carrying out the responsibilities of a director. Our board of directors has determined that each of Messrs. Horne, Hasara, Hicks and
DeStefano are independent directors as defined in NYSEs listing standards and applicable SEC rules. Our independent
directors will have regularly scheduled meetings at which only independent directors are present.
Item
14. Principal Accountant Fees and Services
The
firm of WithumSmith+Brown, PC, or Withum, acts as our independent registered public accounting firm. The following is a summary of fees
paid to Withum for services rendered.
**Audit
Fees**
Audit
fees consist of 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 audit
of our annual financial statements, audit of the financial information included in our initial registration and other required filings
with the SEC for the period from October 22, 2025 (inception) through December 31, 2025 totaled approximately $104,225. 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 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 October 22, 2025 (inception) through December 31, 2025.
**Tax
Fees**
Tax
fees consist of 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 October 22, 2025 (inception) through December 31, 2025.
**All
Other Fees**
All
other fees consist of fees billed for all other services. We did not pay Withum for any other services for the period from October 22,
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.
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).
| 54 | |
| | |
PART
IV
Item
15. Exhibits, Financial Statement Schedules
(a)
The following documents are filed as part of this Annual Report on Form 10-K:
(1)
Financial Statements:
| 
| 
Page | |
| 
Report of Independent Registered Public Accounting Firm | 
F-2 | |
| 
Balance Sheet | 
F-3 | |
| 
Statement of Operations | 
F-4 | |
| 
Statement of Changes in Shareholders Deficit | 
F-5 | |
| 
Statement of Cash Flows | 
F-6 | |
| 
Notes to Financial Statements | 
F-7 | |
(2)
Financial Statement Schedules: None.
(3)
Exhibits
We
hereby file as part of this Annual Report the exhibits listed in the attached Exhibit Index. Exhibits which are incorporated herein by
reference can be inspected and copied at the public reference facilities maintained by the SEC, 100 F Street, N.E., Room 1580, Washington,
D.C. 20549. Copies of such material can also be obtained from the Public Reference Section of the SEC, 100 F Street, N.E., Washington,
D.C. 20549, at prescribed rates or on the SEC website at www.sec.gov.
| 
Exhibit
No. | 
| 
Description | |
| 
| 
| 
| |
| 
3.1 | 
| 
Amended and Restated Memorandum and Articles of Association.(1) | |
| 
4.1 | 
| 
Specimen Unit Certificate.(2) | |
| 
4.2 | 
| 
Specimen Ordinary Share Certificate.(2) | |
| 
4.3 | 
| 
Specimen Warrant Certificate.(2) | |
| 
4.4 | 
| 
Warrant Agreement dated as of January 28, 2026 between Continental Stock Transfer & Trust Company and the Registrant.(1) | |
| 
4.5* | 
| 
Description of Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934, As Amended. | |
| 
10.1 | 
| 
Private Placement Securities Purchase Agreement, dated January 28, 2026, by and between the Registrant and the Sponsor.(1) | |
| 
10.2 | 
| 
Investment Management Trust Agreement, dated January 28, 2026, by and between Continental Stock Transfer & Trust Company and the Registrant.(1) | |
| 
10.3 | 
| 
RegistrationRights Agreement, dated January 28, 2026, by and among the Registrant, the Sponsor and certain other security holders named therein.(1) | |
| 
10.4 | 
| 
Insider Letter Agreement, dated January 28, 2026, by and among the Registrant, the Sponsor and the Registrants officers and directors.(1) | |
| 
10.5 | 
| 
Administrative Services Agreement, dated January 28, 2026, by and between the Registrant and Globis Capital Management, LP.(1) | |
| 
10.6 | 
| 
Form of Indemnity Agreement.(2) | |
| 
10.7 | 
| 
Underwriting Agreement, dated January 28, 2026, by and between the Registrant and Lucid Capital Markets, LLC, as representative of the underwriters named therein.(1) | |
| 
10.8 | 
| 
Private Placement Unit Purchase Agreement, dated January 28, 2026, by and between the Registrant and Lucid Capital Markets, LLC and Chardan Capital Markets, LLC.(1) | |
| 
10.9 | 
| 
Securities Purchase Agreement, dated October 24, 2025, by and between the Registrant and the Sponsor.(2) | |
| 
19* | 
| 
Insider Trading Policy. | |
| 
31.1* | 
| 
Certification of the Registrants Chief Executive Officer (Principal Executive Officer) Pursuant to Rules 13a-14(a) and 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 Registrants Chief Financial Officer (Principal Financial and Accounting Officer) Pursuant to Rules 13a-14(a) and 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 Registrants Chief Executive Officer (Principal Executive Officer) Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| 
32.2* | 
| 
Certification of the Registrants Chief Financial Officer (Principal Financial and Accounting Officer) Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| 
97 | 
| 
Clawback Policy.(2) | |
| 
101.INS* | 
| 
Inline XBRL Instance
Document | |
| 
101.SCH* | 
| 
Inline XBRL Taxonomy
Extension Schema | |
| 
101.CAL* | 
| 
Inline XBRL Taxonomy
Extension Calculation Linkbase | |
| 
101.DEF* | 
| 
Inline XBRL Taxonomy
Extension Definition Linkbase | |
| 
101.LAB* | 
| 
Inline XBRL
Taxonomy Extension Label Linkbase | |
| 
101.PRE* | 
| 
Inline XBRL Taxonomy
Extension Presentation Linkbase | |
| 
104* | 
| 
Cover Page
Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |
| 
* | 
Filed
herewith. | |
| 
| 
| |
| 
(1) | 
Incorporated
by reference to the Registrants Current Report on Form 8-K, filed with the SEC on January 30, 2026. | |
| 
| 
| |
| 
(2) | 
Incorporated
by reference to the Registrants Registration Statement on Form S-1, filed with the SEC on December 2, 2025. | |
Item
16. Form 10-K Summary
Not
applicable.
| 55 | |
| | |
****
**UNITED
ACQUISITION CORP. I**
**INDEX
TO FINANCIAL STATEMENTS**
F.
| 
Report of Independent Registered Public Accounting Firm | 
F-2 | |
| 
Financial Statements: | 
| |
| 
Balance Sheet as of December 31, 2025 | 
F-3 | |
| 
Statement of Operations for the Period from October 22, 2025 (inception) through December 31, 2025 | 
F-4 | |
| 
Statement of Changes in Shareholders Deficit for the Period from October 22, 2025 (inception) through December 31, 2025 | 
F-5 | |
| 
Statement of Cash Flows for the Period from October 22, 2025 (inception) through December 31, 2025 | 
F-6 | |
| 
Notes to Financial Statements | 
F-7 to F-15 | |
| F-1 | |
| | |
**REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
To
the Shareholders and the Board of Directors of
United
Acquisition Corp. I:
**Opinion
on the Financial Statements**
We
have audited the accompanying balance sheet of United Acquisition Corp. I (the Company) as of December 31, 2025, and the
related statements of operations, changes in shareholders deficit and cash flows for the period from October 22, 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 United Acquisition Corp. I as of December
31, 2025, and the results of its operations and its cash flows for the period from October 22, 2025 (inception) through December 31,
2025, in conformity with accounting principles generally accepted in the United States of America.
**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 entitys 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 the Companys auditor since 2025.
New
York, New York
March
30, 2026
PCAOB
ID Number 100
****
| F-2 | |
| | |
****
**UNITED
ACQUISITION CORP. I**
**BALANCE
SHEET**
**DECEMBER
31, 2025**
****
| 
| | 
| | |
| 
Assets: | | 
| | |
| 
Cash | | 
$ | 1,960 | | |
| 
Prepaid expenses | | 
| 28,600 | | |
| 
Total current assets | | 
| 30,560 | | |
| 
Deferred offering costs | | 
| 330,108 | | |
| 
Total Assets | | 
$ | 360,668 | | |
| 
| | 
| | | |
| 
Liabilities and Shareholders Deficit | | 
| | | |
| 
Liabilities: | | 
| | | |
| 
Current liabilities | | 
| | | |
| 
Accrued offering costs | | 
$ | 287,500 | | |
| 
Accrued expenses | | 
| 12,000 | | |
| 
Promissory note related party | | 
| 85,670 | | |
| 
Total current liabilities | | 
| 385,170 | | |
| 
Total Liabilities | | 
| 385,170 | | |
| 
| | 
| | | |
| 
Commitments and Contingencies (Note 6) | | 
| - | | |
| 
| | 
| | | |
| 
Shareholders Deficit | | 
| | | |
| 
Preference shares, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding | | 
| | | |
| 
Class A ordinary shares, $0.0001 par value; 100,000,000 shares authorized; none issued or outstanding | | 
| | | |
| 
Class B ordinary shares, $0.0001 par value; 10,000,000 shares authorized; 3,833,333 shares issued and outstanding (1)(2)(3) | | 
| 383 | | |
| 
Ordinary shares, value | | 
| 383 | | |
| 
Additional paid-in capital | | 
| 370,617 | | |
| 
Accumulated deficit | | 
| (395,502 | ) | |
| 
Total Shareholders Deficit | | 
| (24,502 | ) | |
| 
Total Liabilities and Shareholders Deficit | | 
$ | 360,668 | | |
****
| 
(1) | 
Included 500,000
Class B ordinary shares subject to forfeiture if the over-allotment option was not exercised in full or in part by the underwriters
(Note 7). | |
| 
(2) | 
On November 26, 2025, the
Company effected a share dividend of approximately 0.33 shares for each Class B ordinary share outstanding, resulting in the Sponsor
holding an aggregate of 3,833,333 founder shares (Note 7). All share and per-share data has been retrospectively presented. | |
| 
(3) | 
As a result of the partial
exercise by the underwriters of the over-allotment option on February 12, 2026, 60,767 founder shares were no longer subject to forfeiture.
On March 14, 2026, the underwriters over-allotment option expired, resulting in 439,233 founder shares being forfeited to
the Company (Note 7). | |
The
accompanying notes are an integral part of the financial statements.
| F-3 | |
| | |
**UNITED
ACQUISITION CORP. I**
**STATEMENT
OF OPERATIONS**
**FOR
THE PERIOD FROM OCTOBER 22, 2025 (INCEPTION) THROUGH DECEMBER 31, 2025**
****
| 
| | 
| | | |
| 
Formation, general, and administrative costs | | 
$ | 49,502 | | |
| 
Loss from operations | | 
| (49,502 | ) | |
| 
| | 
| | | |
| 
Other expense: | | 
| | | |
| 
Share-based compensation expense | | 
| 346,000 | | |
| 
Net loss | | 
$ | (395,502 | ) | |
| 
| | 
| | | |
| 
Weighted average shares outstanding, Class B ordinary shares (1)(2)(3) | | 
| 3,333,333 | | |
| 
| | 
| | | |
| 
Basic and diluted net loss per share, Class B ordinary shares | | 
$ | (0.12 | ) | |
| 
(1) | 
Excludes 500,000
Class B ordinary shares subject to forfeiture if the over-allotment option was not exercised in full or in part by the underwriters
(Note 7). | |
| 
(2) | 
On November 26, 2025, the
Company effected a share dividend of approximately 0.33 shares for each Class B ordinary share outstanding, resulting in the Sponsor
holding an aggregate of 3,833,333 founder shares (Note 7). All share and per-share data has been retrospectively presented. | |
| 
(3) | 
As a result of the partial
exercise by the underwriters of the over-allotment option on February 12, 2026, 60,767 founder shares are no longer subject to forfeiture.
On March 14, 2026, the underwriters over-allotment option expired, resulting in 439,233 founder shares being forfeited to
the Company (Note 7). | |
The
accompanying notes are an integral part of the financial statements.
| F-4 | |
| | |
**UNITED
ACQUISITION CORP. I**
**STATEMENT
OF CHANGES IN SHAREHOLDERS DEFICIT**
**FOR
THE PERIOD FROM OCTOBER 22, 2025 (INCEPTION) THROUGH DECEMBER 31, 2025**
****
| 
| | 
Shares | | | 
Amount | | | 
Shares | | | 
Amount | | | 
Capital | | | 
Deficit | | | 
Deficit | | |
| 
| | 
Class A Ordinary Shares | | | 
Class B Ordinary Shares | | | 
Additional Paid-in | | | 
Accumulated | | | 
Total Shareholders | | |
| 
| | 
Shares | | | 
Amount | | | 
Shares | | | 
Amount | | | 
Capital | | | 
Deficit | | | 
Deficit | | |
| 
Balance October 22, 2025 (Inception) | | 
| | | | 
$ | | | | 
| | | | 
$ | | | | 
$ | | | | 
$ | | | | 
$ | | | |
| 
Balance | | 
| | | | 
$ | | | | 
| | | | 
$ | | | | 
$ | | | | 
$ | | | | 
$ | | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Issuance of Class B ordinary shares to Sponsor(1)(2) | | 
| | | | 
| | | | 
| 3,833,333 | | | 
| 383 | | | 
| 24,617 | | | 
| | | | 
| 25,000 | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Share-based compensation expense | | 
| | | | 
| | | | 
| | | | 
| | | | 
| 346,000 | | | 
| | | | 
| 346,000 | | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Net loss | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| (395,502 | ) | | 
| (395,502 | ) | |
| 
| | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | | 
| | | |
| 
Balance December 31, 2025 | | 
| | | | 
$ | | | | 
| 3,833,333 | | | 
$ | 383 | | | 
$ | 370,617 | | | 
$ | (395,502 | ) | | 
$ | (24,502 | ) | |
| 
Balance | | 
| | | | 
$ | | | | 
| 3,833,333 | | | 
$ | 383 | | | 
$ | 370,617 | | | 
$ | (395,502 | ) | | 
$ | (24,502 | ) | |
****
| 
(1) | 
Includes 500,000
Class B ordinary shares subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriters
(Note 7). | |
| 
(2) | 
On November 26, 2025, the
Company effected a share dividend of approximately 0.33 shares for each Class B ordinary share outstanding, resulting in the Sponsor
holding an aggregate of 3,833,333 founder shares (Note 7). All share and per-share data have been retrospectively presented. | |
| 
(3) | 
As a result of the partial
exercise by the underwriters of the over-allotment option on February 12, 2026, 60,767 founder shares are no longer subject to forfeiture.
On March 14, 2026, the underwriters over-allotment option expired, resulting in 439,233 founder shares being forfeited to
the Company (Note 7). | |
The
accompanying notes are an integral part of these financial statements.
| F-5 | |
| | |
**UNITED
ACQUISITION CORP. I**
**STATEMENT
OF CASH FLOWS**
**FOR
THE PERIOD FROM OCTOBER 22, 2025 (INCEPTION) THROUGH DECEMBER 31, 2025**
****
| 
| | 
| | |
| 
Cash Flows from Operating Activities: | | 
| | |
| 
Net loss | | 
$ | (395,502 | ) | |
| 
Adjustments to reconcile net loss to net cash used in operating activities: | | 
| | | |
| 
Share-based compensation expense | | 
| 346,000 | | |
| 
Payment of formation, general, and administrative costs through promissory note related party | | 
| 11,462 | | |
| 
Changes in operating assets and liabilities: | | 
| | | |
| 
Accrued expenses | | 
| 12,000 | | |
| 
Net cash used in operating activities | | 
| (26,040 | ) | |
| 
| | 
| | | |
| 
Cash Flows from Financing Activities: | | 
| | | |
| 
Proceeds from promissory note related party | | 
| 36,000 | | |
| 
Payment of deferred offering costs | | 
| (8,000 | ) | |
| 
Net cash provided by financing activities | | 
| 28,000 | | |
| 
| | 
| | | |
| 
Net Change in Cash | | 
| 1,960 | | |
| 
Cash Beginning of period | | 
| | | |
| 
Cash End of period | | 
$ | 1,960 | | |
| 
| | 
| | | |
| 
Noncash investing and financing activities: | | 
| | | |
| 
Deferred offering costs included in accrued offering costs | | 
$ | 287,500 | | |
| 
Deferred offering costs paid through promissory note related party | | 
$ | 34,608 | | |
| 
Prepaid expenses paid by Sponsor in exchange for issuance of Class B ordinary shares | | 
$ | 25,000 | | |
| 
Prepaid expenses paid through promissory note related party | | 
$ | 3,600 | | |
****
The
accompanying notes are an integral part of the financial statements.
| F-6 | |
| | |
**UNITED
ACQUISITION CORP. I**
**NOTES
TO FINANCIAL STATEMENTS**
**DECEMBER
31, 2025**
**1.
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS**
**Organization
and General**
United
Acquisition Corp. I (the Company) was incorporated as a Cayman Islands exempted company with limited liability on October
22, 2025. The Company is a newly organized blank check company or special purpose acquisition company (SPAC), formed for
the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar
business combination with one or more businesses (the Business Combination). The Company has not selected any specific
Business Combination target. Its efforts to identify a prospective target business will not be limited to a particular industry or geographic
region although it intends to focus on target businesses in the energy and power industries.
As
of December 31, 2025, the Company had not commenced any operations. All activity for the period from October 22, 2025 (inception) through
December 31, 2025 relates to the Companys formation, the initial public offering (Initial Public Offering), subsequent
to the Initial Public Offering, sale of additional units as a result of the partial exercise by the underwriters of their over-allotment
option, and identifying a target company for a Business Combination. The Company will not generate any operating revenues until after
completion of the Business Combination, at the earliest. The Company will generate non-operating income in the form of interest and/or
dividend income from the proceeds derived from the Initial Public Offering and from the sale of additional units as a result of the partial
exercise by the underwriters of their over-allotment option. The Company has selected December 31 as its fiscal year end.
**Sponsor,
Founder and Financing**
The
Companys sponsor is United Acquisition SPAC LLC (the Sponsor). The registration statement for the Companys
Initial Public Offering was declared effective on January 28, 2026. On January 30, 2026, the Company consummated the Initial Public Offering
of 10,000,000 units (the Units), at $10.00 per Unit, generating gross proceeds of $100,000,000. Each Unit consists of one
Class A ordinary share and one-quarter of one redeemable warrant (each Public Warrant, and collectively, the Public
Warrants). Each whole Public Warrant entitles the holder thereof to purchase one Class A ordinary share at a price of $11.50 per
share, subject to adjustment.
Simultaneously
with the closing of the Initial Public Offering, the Company consummated the sale of an aggregate of 275,000 private placement units
(each Private Placement Unit, and collectively, the Private Placement Units) at a price of $10.00 per Private
Placement Unit, generating gross proceeds of $2,750,000. Each Private Placement Unit consists of one Class A ordinary share and one-quarter
of one redeemable warrant (each Private Placement Warrant, and collectively, the Private Placement Warrants).
Of those 275,000 Private Placement Units, the Sponsor purchased 175,000 Private Placement Units, and the underwriters purchased 100,000
Private Placement Units. In addition, the Company consummated the sale of an aggregate of 2,333,333 Private Placement Warrants, at a
price of $0.75 per Private Placement Warrant, $1,750,000 in the aggregate, to the Sponsor. Each whole Private Placement Warrant entitles
the holder thereof to purchase one Class A ordinary share at a price of $11.50 per share, subject to adjustment.
Transaction
costs amounted to $5,536,580, consisting of $1,500,000 of cash underwriting fees, $3,500,000 of deferred underwriting fees, and $536,580
of other offering costs.
On
February 12, 2026, the Company consummated the closing of an additional 182,300 Units sold pursuant to the underwriters partial
exercise of their over-allotment option, generating gross proceeds of $1,823,000. On February 12, 2026, simultaneously with the sale
of additional Units, the Company consummated the private sale of an additional 2,280 Private Placement Units to the Sponsor and underwriters
generating gross proceeds of $22,800. Of those 2,280 Private Placement Units, the Sponsor purchased 457 Private Placement Units while
the underwriters purchased 1,823 Private Placement Units. In addition, the Company also consummated the private sale of an additional
6,060 Private Placement Warrants to the Sponsor generating gross proceeds of $4,545.
Additional
transaction costs amounted to $91,150, consisting of $27,345 of cash underwriting fees and $63,805 of deferred underwriting fees.
**The
Trust Account**
Following
the closing of the Initial Public Offering, on January 30, 2026, an amount of $100,000,000 ($10.00 per Unit) from the net proceeds of
the sale of the Units, Private Placement Units, and Private Placement Warrants was placed in a U.S.-based trust account (the Trust
Account), with Continental Stock Transfer & Trust Company, acting as trustee. Following the sale of the additional Units,
on February 12, 2026, all of the net proceeds from the sale of additional Units and additional Private Placement Units and Warrants totaling
to $1,823,000 have been added in the Trust Account. The funds in the Trust Account will be invested or held only in either (i) U.S. government
treasury obligations with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the
Investment Company Act of 1940 which invest only in direct U.S. government treasury obligations, (ii) as uninvested cash, or (iii) an
interest bearing bank demand deposit account or other accounts at a bank. The funds will remain in the Trust Account until the earlier
of (i) the completion of the Business Combination or (ii) the distribution of the Trust Account as described below. The Company is permitted
to withdraw amounts from the Trust Account (i) to fund its working capital requirements, which amount will be the lesser of $500,000
or 5% of the interest earned on the Trust Account, and/or (ii) to pay its taxes (other than excise taxes, if any), provided that all
permitted withdrawals can only be made (x) from interest and not from the principal held in the Trust Account and (y) only to the extent
such interest is in amount sufficient to cover the permitted withdrawal amount (permitted withdrawals).
The
Company will provide the holders of the public shares, or the public shareholders, with the opportunity to redeem all or
a portion of their public shares upon the completion of the initial Business Combination at a per-share price, payable in cash, equal
to the aggregate amount then on deposit in the Trust Account as of two business days prior to consummation of the initial Business Combination,
including interest (which interest shall be net of permitted withdrawals), divided by the number of then issued and outstanding public
shares, subject to limitations. The amount in the Trust Account will initially be $10.00 per public share.
| F-7 | |
| | |
**UNITED
ACQUISITION CORP. I**
**NOTES
TO FINANCIAL STATEMENTS**
**DECEMBER
31, 2025**
**Business
Combination**
The
Companys management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering,
although substantially all of the net proceeds of the Initial Public Offering are intended to be generally applied toward consummating
a Business Combination with (or acquisition of) a Target Business. As used herein, Target Business must be with one or
more target businesses that together have a fair market value equal to at least 80% of the balance in the Trust Account (less the deferred
underwriting commissions and the taxes payable on interest earned) at the time the Company signs a definitive agreement in connection
with the Business Combination. There is no assurance that the Company will be able to successfully effect a Business Combination.
The
Company, after signing a definitive agreement for a Business Combination, will either (i) seek shareholder approval of the Business Combination
at a meeting called for such purpose in connection with which shareholders may seek to redeem their shares, regardless of whether they
vote for or against or vote at all with respect to the Business Combination, for cash equal to their pro rata share of the aggregate
amount then on deposit in the Trust Account including interest (which interest shall be net of permitted withdrawals) or (ii) provide
shareholders with the opportunity to have their shares redeemed by the Company by means of a tender offer (and thereby avoid the need
for a shareholder vote) for an amount in cash equal to their pro rata share of the aggregate amount then on deposit in the Trust Account,
net of taxes payable, if any. The decision as to whether the Company will seek shareholder approval of the Business Combination or will
allow shareholders to redeem their shares in a tender offer will be made by the Company, solely in its 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 otherwise require the Company
to seek shareholder approval unless a vote is required by the New York Stock Exchange rules. If the Company seeks shareholder approval,
it will complete its Business Combination only if it obtains the approval of an ordinary resolution under Cayman Islands law and its
amended and restated memorandum and articles of association, save if the Business Combination is structured as a statutory merger or
consolidation with another company under the laws of the Cayman Islands which would require the approval of a special resolution.
The
Company has 24 months from the closing date of the Initial Public Offering, or until such earlier liquidation date as the Companys
board of directors may approve, to complete its initial Business Combination (the Completion Window). If the Company does
not complete a Business Combination within the Completion Window, it shall (i) cease all operations except for the purposes of winding
up; (ii) as promptly as reasonably possible, but not more than ten (10) business days thereafter, redeem 100% of the outstanding 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 (which interest shall be net of permitted withdrawals, and up to $100,000 of interest to
pay dissolution expenses), divided by the number of then issued and outstanding public shares, which redemption will completely extinguish
public shareholders rights as shareholders (including the right to receive further liquidation distributions, if any), subject
to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the remaining shareholders
and the board of directors, liquidate and dissolve, subject (in the case of (ii) and (iii) above) to obligations under the Cayman Islands
laws to provide for claims of creditors and the requirements of other applicable law. The initial shareholders will each enter into agreements
with the Company, pursuant to which they will agree: (1) to waive their redemption rights with respect to their founder shares, Private
Placement Units, Private Placement Warrants and shares underlying any Private Placement Warrants and Private Placement Units held in
connection with the consummation of the initial Business Combination or a tender offer conducted prior to a Business Combination or in
connection with it; and (2) to waive their rights to liquidating distributions from the Trust Account with respect to the founder shares
and Private Placement Shares if the Company fails to complete the initial Business Combination within 24 months from the closing of the
Initial Public Offering, 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 prescribed time frame.
The
Class A ordinary shares subject to redemption are recorded at redemption value and classified as temporary equity upon the completion
of the Initial Public Offering and sale of additional Units as a result of the partial exercise by the underwriters of their over-allotment
option, in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC)
Topic 480, Distinguishing Liabilities from Equity.
**Liquidity
and Capital Resources**
****
The
Companys liquidity needs up to December 31, 2025 had been satisfied through the loan under an unsecured promissory note from the
Sponsor of up to $500,000 (see Note 5). As of December 31, 2025, the Company had cash of $1,960 and had a working capital deficit of
$354,610.
In
connection with the Companys assessment of going concern in accordance with FASB ASC Topic 205-40, Presentation of Financial
Statements - Going Concern, the Company completed its Initial Public Offering on January 30, 2026 and the sale of additional Units
as a result of the partial exercise by the underwriters of their over-allotment option on February 12, 2026, at which time the capital
in excess of the funds deposited in Trust Account and/or used to fund offering costs and other expenses was released to the Company for
general capital purposes. The Company does not believe it will need to raise additional funds in order to meet the expenditures required
to operate 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 upon the consummation of the Initial
Public Offering and the sale of the Private Placement Units and Private Placement Warrants on January 30, 2026, and the sale of additional
Units, additional Private Placement Units and additional Private Placement Warrants as a result of the partial exercise by the underwriters
of their over-allotment option, the Company has sufficient funds to finance the working capital needs of the Company within one year
from the date of issuance of the financial statements.
**2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**
**Basis
of Presentation**
The
accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America
(GAAP) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the SEC).
****
| F-8 | |
| | |
****
**UNITED
ACQUISITION CORP. I**
**NOTES
TO FINANCIAL STATEMENTS**
**DECEMBER
31, 2025**
****
**Emerging
Growth Company**
The
Company is an emerging growth company, as defined in Section 2(a) of the Securities Act of 1933, as amended (the Securities
Act), as modified by the Jumpstart Our Business Startups Act of 2012 (the JOBS Act), and it may take advantage of
certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies
including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley
Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from
the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments
not previously approved.
Further,
Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting
standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do
not have a class of securities registered under the Securities Exchange Act of 1934, as amended (the Exchange Act) are
required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out
of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such 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
Companys financial statements with another public company which is neither an emerging growth company nor an emerging growth company
which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting
standards used.
**Fair
Value of Financial Instruments**
The
fair value of the Companys assets and liabilities, which qualify as financial instruments under FASB ASC Topic 820, Fair
Value Measurements and Disclosures, approximates the carrying amounts represented in the balance sheet, primarily due to its short-term
nature.
**Use
of Estimates**
****
The
preparation of the financial statements in conformity with GAAP requires the Companys management 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 financial
statements and the reported amounts of expenses during the reporting period.
Making
estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of
a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating
its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ
significantly from those estimates.
**Cash
and Cash Equivalents**
The
Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents.
The Company had cash of $1,960 and did not have any cash equivalent as of December 31, 2025.
**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.
**Deferred
Offering Costs**
The
Company complies with the requirements of the FASB ASC Topic 340-10-S99 and SEC Staff Accounting Bulletin Topic 5A, Expenses of
Offering. Deferred Offering costs consist principally of professional and registration fees that are related to the Initial Public
Offering. FASB ASC 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 applies this guidance to allocate Initial Public Offering proceeds
from the Units between Class A ordinary shares and warrants, using the residual method by allocating Initial Public Offering proceeds
first to assigned value of the warrants and then to the Class A ordinary shares. On January 30, 2026, upon completion of the Initial
Public Offering, and on February 12, 2026 upon the sale of the additional Units as a result of the underwriters partial exercise
of their over-allotment option, offering costs allocated to the Public Shares subject to possible redemption are charged to temporary
equity and offering costs allocated to the Public Warrants, Private Placement Units, and Private Placement Warrants are charged to shareholders
deficit as Public and Private Placement Warrants, after managements evaluation, are accounted for under equity treatment.
**Income
Taxes**
The
Company follows the asset and liability method of accounting for income taxes under FASB ASC Topic 740, Income Taxes. Deferred
tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to
be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period
that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected
to be realized.
| F-9 | |
| | |
**UNITED
ACQUISITION CORP. I**
**NOTES
TO FINANCIAL STATEMENTS**
**DECEMBER
31, 2025**
FASB
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 Company recognizes accrued interest and penalties related to unrecognized
tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of December
31, 2025. 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 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, and the Company believes it is presently not subject to income taxes or
income tax filing requirements in the United States. As such, the Companys tax provision was zero for the period presented.
**Derivative
Financial Instruments**
The
Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded
derivatives in accordance with FASB ASC Topic 815, Derivatives and Hedging. For derivative financial instruments that are
accounted for as liabilities, the derivative instrument is initially recorded at its fair value on the grant date and is then re-valued
at each reporting date, with changes in the fair value reported in the statement of operations. The classification of derivative instruments,
including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period.
Derivative liabilities are classified in the balance sheet as current or non-current based on whether or not net cash settlement or conversion
of the instrument could be required within 12 months of the balance sheet date. The underwriters over-allotment option is deemed
to be a freestanding financial instrument indexed on the contingently redeemable shares and is accounted for as a liability pursuant
to FASB ASC 480 since the over-allotment option was not exercised at the time of the Initial Public Offering. As of December 31, 2025,
there is no over-allotment option liability recognized in the Companys balance sheet. On January 30, 2026, the Company recognized
a total of $94,122 of over-allotment option liability. On February 12, 2026, the Company reduced the over-allotment option liability
by $11,659 as a result of the partial exercise by the underwriters of their over-allotment option. On March 14, 2026, the underwriters
over-allotment option expired, the Company closed the remaining $82,463 over-allotment option liability against accumulated deficit.
**Warrant
Instruments**
The
Company accounts for the Public and Private Placement Warrants issued in connection with the Initial Public Offering and the private
placement in accordance with the guidance contained in FASB ASC Topic 815, Derivatives and Hedging. Accordingly, the Company
evaluated and classified the warrant instruments under equity treatment at their assigned value. As of December 31, 2025, there were
no Public Warrants and Private Placement Warrants issued or outstanding.
**Share-Based
Payment Arrangements**
The
Company accounts for share awards in accordance with FASB ASC Topic 718, CompensationStock Compensation, which requires
that all equity awards be accounted for at their fair value. Fair value is measured on the grant date and is equal to the
underlying value of the share. Costs equal to these fair values are recognized ratably over the requisite service period based on the
number of awards that are expected to vest, in the period of grant for awards that vest immediately and have no future service condition,
or in the period the awards vest immediately after meeting a performance condition becomes probable (i.e., the occurrence of a Business
Combination). For awards that vest over time, cumulative adjustments in later periods are recorded to the extent actual forfeitures differ
from the Companys initial estimates; previously recognized compensation cost is reversed if the service or performance conditions
are not satisfied and the award is forfeited.
**Net
Loss per Class B Ordinary Share**
Net
loss per Class B ordinary share is computed by dividing net loss by the weighted average number of Class B ordinary shares outstanding
during the period, excluding Class B ordinary shares subject to forfeiture. Weighted average shares were reduced for the effect of an
aggregate of 500,000 Class B ordinary shares that are subject to forfeiture if the over-allotment option is not exercised by the underwriters
(see Note 7). As of December 31, 2025, the Company did not have any dilutive securities or other contracts that could, potentially, be
exercised or converted into ordinary shares and then share in the earnings of the Company. As a result, diluted net loss per Class B
ordinary share is the same as basic net loss per Class B ordinary share for the period presented.
**Recent
Accounting Pronouncements**
In
November 2023, the FASB issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements
to Reportable Segment Disclosures. The amendments in this ASU require disclosures, on an annual and interim basis, of significant
segment expenses that are regularly provided to the chief operating decision maker (CODM), as well as the aggregate amount
of other segment items included in the reported measure of segment profit or loss. The ASU requires that a public entity disclose the
title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing
segment performance and deciding how to allocate resources. Public entities will be required to provide all annual disclosures currently
required by Topic 280 in interim periods, and entities with a single reportable segment are required to provide all the disclosures required
by the amendments in this ASU and existing segment disclosures in Topic 280. This ASU is effective for fiscal years beginning after December
15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted
ASU 2023-07 on October 22, 2025, inception.
The
Company does not believe that any other recently issued, but not yet effective, accounting pronouncements, if currently adopted, would
have a material effect on the Companys financial statements.
| F-10 | |
| | |
**UNITED
ACQUISITION CORP. I**
**NOTES
TO FINANCIAL STATEMENTS**
**DECEMBER
31, 2025**
**3.
INITIAL PUBLIC OFFERING**
Pursuant
to the Initial Public Offering on January 30, 2026, the Company sold 10,000,000 Units, at a purchase price of $10.00 per Unit, generating
gross proceeds of $100,000,000. On February 12, 2026, the Company consummated the closing of an additional 182,300 Units sold pursuant
to the underwriters partial exercise of their over-allotment option, at $10.00 per additional Unit, generating gross proceeds
of $1,823,000. Each Unit consists of one Public Share and one-quarter of one Public Warrant. Each Public Warrant entitles the holder
to purchase one Class A ordinary share at a price of $11.50 per share, subject to adjustment.
**Warrants
** As of December 31, 2025, there were no Public Warrants and Private Placement Warrants issued or outstanding. Each whole warrant
entitles the registered holder to purchase one Class A ordinary share at a price of $11.50 per share, at any time commencing on the later
of 12 months from the closing of the Initial Public Offering and after the completion of the initial Business Combination. Pursuant to
the warrant agreement, a warrant holder may exercise its warrants only for a whole number of Class A ordinary shares. This means that
only a whole warrant may be exercised at any given time by a warrant holder. No fractional warrants will be issued upon separation of
the Units and only whole warrants will trade. The warrants will expire at 5:00 p.m., New York City time, on the fifth anniversary of
the completion of an initial Business Combination, or earlier upon redemption.
In
addition, if (x) the Company issues additional Class A ordinary shares or equity-linked securities for capital raising purposes in connection
with the closing of the initial Business Combination at an issue price or effective issue price of less than $9.20 per Class A ordinary
share (with such issue price or effective issue price to be determined in good faith by the board of directors, and in the case of any
such issuance to the Sponsor or its affiliates, without taking into account any founder shares held by them prior to such issuance),
(y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available
for the funding of the initial Business Combination on the date of the consummation of the initial Business Combination (net of redemptions),
and (z) the volume weighted average trading price of Class A ordinary shares during the 20 trading-day period starting on the trading
day prior to the day on which the Company consummates its initial Business Combination (such price, the Market Value) is
below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the greater of
(i) the Market Value or (ii) the price at which the Company issues the additional Class A ordinary shares or equity-linked securities.
On the exercise of any warrant, the exercise price will be paid directly to the Company and not placed in the Trust Account.
The
Company has agreed that as soon as practicable, but in no event later than 20 business days after the closing of the initial Business
Combination, the Company will use its best efforts to file with the SEC a registration statement for the registration under the Securities
Act of the warrant shares and thereafter use its best efforts to cause the registration statement to become effective and to maintain
the effectiveness of such registration statement until the expiration of the warrants. No warrants will be exercisable for cash unless
the Company has an effective and current registration statement covering the issuance of the warrant shares and a current prospectus
relating thereto.
If
a registration statement covering the issuance of the warrant shares is not effective within 90 days following the consummation of the
initial Business Combination, warrant holders may nevertheless, until such time as there is such an effective registration statement
and during any period when the Company shall have failed to maintain such an effective registration statement, exercise warrants on a
cashless basis in accordance with Section 3(a)(9) of the Securities Act. In this circumstance, each holder would pay the exercise price
by surrendering warrants exercisable for the number of Class A ordinary shares equal to the quotient obtained by dividing (x) the product
of the number of Class A ordinary shares underlying such warrants and the difference between the exercise price of such warrants and
the fair market value (defined below) by (y) the fair market value. The fair market value means the average
reported last sale price of the Class A ordinary shares for the ten trading days ending on the third trading day prior to the date of
exercise.
*Redemption
of Warrants:* 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 30 days
prior written notice of redemption (the 30-day redemption period); and | |
| 
| 
| 
| |
| 
| 
| 
if, and only if, the last
reported sale price of the Class A ordinary shares equals or exceeds $16.50 per share (as adjusted for share splits, dividends, reorganizations,
recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the
date on which the Company will send the notice of redemption to the warrant holders. | |
The
Company will not redeem the warrants unless a registration statement under the Securities Act covering the issuance of the warrant shares
underlying the warrants to be so redeemed is then effective and a current prospectus relating to those warrant shares is available throughout
the 30-day redemption period, except if the warrants may be exercised on a cashless basis and such cashless exercise is exempt from registration
under the Securities Act. If and when the warrants become redeemable by the Company, it may exercise its redemption right even if it
is unable to register or qualify the underlying securities for sale under all applicable state securities laws.
If
the foregoing conditions are satisfied and the Company issues a notice of redemption, each warrant holder may exercise his, her or its
warrants prior to the scheduled redemption date. However, the price of the Class A ordinary shares may fall below the $16.50 trigger
price (as adjusted) as well as the $11.50 exercise price (as adjusted) after the redemption notice is issued. The redemption criteria
for the warrants have been established at a price which is intended to provide warrant holders a reasonable premium to the initial exercise
price and provide a sufficient differential between the then-prevailing share price and the exercise price so that if the share price
declines as a result of the redemption call, the redemption will not cause the share price to drop below the exercise price of the warrants.
If the Company calls the warrants for redemption as described above, the management will have the option to require all holders that
wish to exercise warrants to do so on a cashless basis. In making such determination, management will consider, among other
factors, the Companys cash position, the number of warrants that are outstanding and the dilutive effect on the shareholders of
issuing the maximum number of warrant shares issuable upon exercise of outstanding warrants. In such event, the holder would pay the
exercise price by surrendering the warrants for that number of Class A ordinary shares equal to the quotient obtained by dividing (x)
the product of the number of warrant shares underlying the warrants to be so exercised, and the difference between the exercise price
of the warrants and the fair market value by (y) the fair market value.
| F-11 | |
| | |
**UNITED
ACQUISITION CORP. I**
**NOTES
TO FINANCIAL STATEMENTS**
**DECEMBER
31, 2025**
No
fractional Class A ordinary share will be issued upon redemption. If, upon redemption, a holder would be entitled to receive a fractional
interest in a share, the Company will round down to the nearest whole number of the number of Class A ordinary shares to be issued to
the holder.
**4.
PRIVATE PLACEMENTS**
Simultaneously
with the closing of the Initial Public Offering on January 30, 2026, the Company consummated the sale of an aggregate of 275,000 Private
Placement Units at a price of $10.00 per Private Placement Unit, generating gross proceeds of $2,750,000. Each Private Placement Unit
consists of one Class A ordinary share and one-quarter of one redeemable warrant. Of those 275,000 Private Placement Units, the Sponsor
purchased 175,000 Private Placement Units, and the underwriters purchased 100,000 Private Placement Units. In addition, the Company also
consummated the sale of an aggregate of 2,333,333 Private Placement Warrants, at a price of $0.75 per Private Placement Warrant, $1,750,000
in the aggregate, to the Sponsor.
On
February 12, 2026, simultaneously with the sale of additional Units, the Company consummated the private sale of an additional 2,280
Private Placement Units to the Sponsor and underwriters generating gross proceeds of $22,800. Of those 2,280 Private Placement Units,
the Sponsor purchased 457 Private Placement Units while the underwriters purchased 1,823 Private Placement Units. In addition, the Company
also consummated the private sale of an additional 6,060 Private Placement Warrants to the Sponsor generating gross proceeds of $4,545.
The
Private Placement Warrants are identical to the Public Warrants except that (i) the Private Placement Warrants may be exercised for cash
or on a cashless basis, (ii) the Private Placement Warrants and the Class A ordinary shares issuable upon exercise thereof may be subject
to certain transfer restrictions contained in the letter agreement among the Company, the Sponsor and other parties thereto, as amended
from time to time, (iii) the Private Placement Warrants will not be redeemable by the Company, and (iv) the holders of the Private Placement
Warrants (including Class A ordinary shares issuable upon exercise thereof) may be entitled to certain registration rights. With respect
to any cashless exercise of the Private Placement Warrants, the fair market value means, at the discretion of the holder,
either (x) the average last reported sale price of the public shares for the ten trading days ending on the third trading day prior to
the date of exercise or (y) the last reported sale price of the public shares for the trading day prior to the date of exercise.
A
portion of the purchase price of the Private Placement Units and Private Placement Warrants was added to the proceeds of Initial Public
Offering held in the Trust Account. If the initial Business Combination is not completed within the Completion Window, the proceeds from
the sale of the Private Placement Units and Private Placement Warrants held in the Trust Account will be used to fund the redemption
of the public shares (subject to the requirements of applicable law).
**5.
RELATED PARTY TRANSACTIONS**
**Founder
Shares**
On
October 24, 2025, the Sponsor purchased 2,875,000 Class B ordinary shares (the founder shares) from the Company for an
aggregate purchase price of $25,000, or $0.009 per share. On November 26, 2025, the Company effected a share dividend of approximately
0.33 shares for each Class B ordinary share issued and outstanding, resulting in the Sponsor holding an aggregate of 3,833,333 founder
shares. All share and per-share data have been retrospectively presented. Up to 500,000 founder shares were subject to forfeiture depending
on the extent to which the underwriters over-allotment option was exercised during the Initial Public Offering. As a result of
the partial exercise by the underwriters of the over-allotment option on February 12, 2026, 60,767 founder shares were no longer subject
to forfeiture. On March 14, 2026, the underwriters over-allotment option expired, resulting in 439,233 founder shares being forfeited
to the Company.
The
forfeiture was adjusted depending on the extent to which the over-allotment option was not exercised in full by the underwriters such
that the Sponsor owns 25% of the Companys issued and outstanding Class A and Class B ordinary shares. On November 26, 2025, the
Sponsor transferred 25,000 founder shares each to four of the Companys independent directors (an aggregate of 100,000 founder
shares) at their original purchase price share of $0.007 per share. The founder shares transferred to the independent directors were
not subject to forfeiture.
The
founder shares granted to the independent directors and advisors are in the scope of FASB ASC Topic 718. Under FASB ASC Topic 718, stock-based
compensation associated with equity-classified awards is measured at fair value on the assignment date. The Company established the initial
fair value of the founder shares on November 26, 2025, the date of the grant agreement, using a calculation prepared by a third-party
valuation experts which takes into consideration the probability of De-SPAC and instrument specific market adjustment was assumed to
be 35.0%; the implied Class A share price was $9.88; and volatility of 7.5%. The total fair value of the 100,000 founder shares transferred
to the four independent directors was $346,000 or $3.46 per share. The Company recognized share-based compensation expense of $346,000
at the grant date.
**Promissory
Note Related Party**
The
Sponsor had agreed to loan the Company an aggregate of up to $300,000, which was amended and restated on November 26, 2025 to increase
the principal amount to $500,000, to be used for a portion of the expenses of the Initial Public Offering (the Promissory Note).
The loan was non-interest bearing and unsecured with maturity date at the earlier of April 23, 2026 or the closing of the Initial Public
Offering. As of December 31, 2025, there was $85,670 outstanding under the Promissory Note. On January 30, 2026, the Company had total
borrowings of $97,671 under the Promissory Note, which has been paid in full by the Company at the closing of the Initial Public Offering
and the borrowings under the Promissory Note are no longer available.
| F-12 | |
| | |
**UNITED
ACQUISITION CORP. I**
**NOTES
TO FINANCIAL STATEMENTS**
**DECEMBER
31, 2025**
**Administrative
Service Agreement**
Commencing
on January 28, 2026, the date that the registration statement for the Companys Initial Public Offering was declared effective,
the Company agreed to pay the Sponsor, or its affiliates, a monthly fee of $20,000 for office space, utilities and secretarial and administrative
services. Upon completion of the initial Business Combination or liquidation, the Company will cease paying these monthly fees. As of
December 31, 2025, such arrangements had not been executed and no amount has been accrued for these services in the Companys balance
sheet.
****
**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 up to $1,500,000 (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. The Working Capital Loans
are convertible into units of the post-Business Combination entity at a price of $10.00 per unit at the option of the lender. The units
would be identical to the Private Placement Units. The terms of such loans by the Companys officers and directors, if any, have
not been determined and no written agreements exist with respect to such loans. As of December 31, 2025, no such Working Capital Loans
were outstanding.
**6.
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 and the Middle East. 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
Companys initial shareholders and their permitted transferees can demand that the Company register the founder shares, the Private
Placement Units, the Private Placement Warrants and underlying securities and any securities issued upon conversion of Working Capital
Loans, pursuant to an agreement signed on the date of the Initial Public Offering. The holders of a majority of these securities are
entitled to make up to three demands that the Company register such securities. The holders of a majority of these securities or units
issued in payment of working capital loans made to the Company (or underlying securities) can elect to exercise these registration rights
at any time after the Company consummates a Business Combination. In addition, the holders have certain piggyback registration rights
on registration statements filed after the Companys consummation of a Business Combination. Notwithstanding anything to the contrary,
the underwriters may only make a demand on one occasion and only during the five-year period beginning on the effective date of Initial
Public Offering. In addition, the underwriters may participate in a piggyback registration only during the seven-year period beginning
on the effective date of the Initial Public Offering. The Company will bear the expenses incurred in connection with the filing of any
such registration statement.
****
**Underwriting
Agreement**
The
Company granted the Underwriters a 45-day option to purchase up to 1,500,000 additional Units to cover any over-allotments, at the Initial
Public Offering price less the underwriting discounts. On February 12, 2026, the underwriters partially exercised their over-allotment
option and purchased an additional 182,300 Units. The underwriters had 45 days from the date of the Initial Public Offering to purchase
the remaining 1,317,700 Units. On March 14, 2026, the underwriters over-allotment option expired for the 1,317,700 Units.
The
underwriters were entitled to a cash underwriting discount of $1,500,000 (1.50% of the gross proceeds of the Units sold in the Initial
Public Offering) paid at the closing of the Initial Public Offering. The underwriters were entitled to a cash underwriting discount of
$0.15 per additional Unit or $27,345 in aggregate, paid on February 12, 2026.
Additionally,
the underwriters are entitled to a deferred underwriting discount of 3.50% of the gross proceeds of the Initial Public Offering held
in the Trust Account, $3,500,000 in the aggregate, due upon the completion of the Companys initial Business Combination subject
to the terms of the underwriting agreement. The underwriters are also entitled to a deferred underwriting discount of 3.50% of the gross
proceeds of the sale of additional Units held in the Trust Account, $63,805 in the aggregate, due upon the completion of the Companys
initial Business Combination subject to the terms of the underwriting agreement.
**7.
SHAREHOLDERS DEFICIT**
**Preference
Shares**
The
Company is authorized to issue 1,000,000 shares of preference shares with a par value of $0.0001 per share with such designations, voting
and other rights and preferences as may be determined from time to time by the board of directors. As of December 31, 2025, there were
no preference shares issued or outstanding.
| F-13 | |
| | |
**UNITED
ACQUISITION CORP. I**
**NOTES
TO FINANCIAL STATEMENTS**
**DECEMBER
31, 2025**
**Class
A Ordinary Shares**
The
Company is authorized to issue 100,000,000 Class A ordinary shares with a par value of $0.0001 per share. As of December 31, 2025, there
were no Class A ordinary shares issued or outstanding.
**Class
B Ordinary Shares**
The
Company is authorized to issue 10,000,000 Class B ordinary shares with a par value of $0.0001 per share. On November 26, 2025, the Company
effected a share dividend of approximately 0.33 shares for each Class B ordinary share outstanding, resulting in the Sponsor holding
an aggregate of 3,833,333 founder shares. All share and per-share data have been retrospectively presented. As of December 31, 2025,
there were 3,833,333 Class B ordinary shares issued and outstanding, of which an aggregate of up to 500,000 Class B ordinary shares are
subject to forfeiture to the extent that the underwriters over-allotment option is not exercised in full or in part so that the
number of founder shares will equal 25% of the Companys issued and outstanding ordinary shares after the Initial Public Offering.
As a result of the partial exercise by the underwriters of the over-allotment option on February 12, 2026, 60,767 founder shares were
no longer subject to forfeiture. On March 14, 2026, the underwriters over-allotment option expired, resulting in 439,233 founder
shares being forfeited to the Company.
The
founder shares will automatically convert into Class A ordinary shares in connection with 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. The Class A ordinary shares issuable in connection
with the conversion of the founder shares may result in material dilution to public shareholders due to the anti-dilution rights of thefounder
shares that may result in an issuance of Class A ordinary shares on a greater than one-to-one basis upon conversion. In the case that
additional Class A ordinary shares, or any other equity-linked securities, are issued or deemed issued in excess of the amounts sold
in this offering and related to or in connection with the closing of the initial Business Combination, the ratio at which Class B ordinary
shares convert into Class A ordinary shares will be adjusted (unless the holders of a majority of the outstanding Class B ordinary shares
agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of Class A ordinary shares issuable
upon conversion of all Class B ordinary shares will equal, in the aggregate, 25% of the sum of (i) the total number of all ordinary shares
outstanding upon the completion of the offering (including any Class A ordinary shares issued in connection with the exercise of the
underwriters over-allotment option and excluding any shares underlying the private securities), plus (ii) all Class A 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 private placement-equivalent
units issued to the Sponsor or any of its affiliates or to the Companys officers or directors upon conversion of working capital
loans) minus (iii) any redemptions of Class A 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.
****
**8.
SEGMENT INFORMATION**
FASB
ASC Topic 280, Segment Reporting, establishes standards for companies to report in their financial statement information
about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of
an enterprise for which separate financial information is available that is regularly evaluated by the Companys 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 operating results 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 reportable 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 statement of operations as net income or loss. The measure of segment assets is reported on the balance sheet as total assets.
When evaluating the Companys performance and making key decisions regarding resource allocation the CODM reviews several key metrics,
which include the following:
SCHEDULE OF SEGMENT REPORTING
| 
| | 
December 31, 2025 | | |
| 
Cash | | 
$ | 1,960 | | |
| 
Prepaid expenses | | 
$ | 28,600 | | |
| 
Deferred offering costs | | 
$ | 330,108 | | |
| 
| | 
For the Period from October 22,
2025 (Inception) Through December 31, 2025 | | |
| 
Formation, general, and administrative costs | | 
$ | 49,502 | | |
| 
Share-based compensation expense | | 
$ | 346,000 | | |
The
CODM reviews formation, general, and administrative costs to manage and forecast cash to ensure enough capital is available to complete
a Business Combination or similar transaction within the Completion Window. The CODM also reviews formation, general, and administrative
costs to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and budget. Formation,
general, and administrative costs, as reported on the statement of operations, are the significant segment information provided to the
CODM on a regular basis. All other segment items included in net income or loss are reported on the statement of operations and described
within their respective disclosures.
| F-14 | |
| | |
**UNITED
ACQUISITION CORP. I**
**NOTES
TO FINANCIAL STATEMENTS**
**DECEMBER
31, 2025**
The
CODM reviews the position of total assets as reported in the Companys balance sheet to assess if the Company has sufficient resources
available to discharge its liabilities. The CODM is provided with details of cash and liquid resources available to the Company. Additionally,
the CODM regularly reviews the status of deferred offering costs incurred to assess if these are in line with the planned use of proceeds
raised from the Initial Public Offering. The CODM will review the interests and/or dividends that will be earned and accrued on 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 Trust Agreement.
**9.
SUBSEQUENT EVENTS**
The
Company evaluated subsequent events that occurred after the balance sheet date, up to March 30, 2026, the date that the financial statements
were issued. Based on this review, other than as described below, the Company did not identify any subsequent events that would have
required adjustment to or disclosure in the financial statements.
****
The
registration statement for the Companys Initial Public Offering was declared effective on January 28, 2026. On January 30, 2026,
the Company consummated the Initial Public Offering of 10,000,000 Units, at $10.00 per Unit, generating gross proceeds of $100,000,000.
Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of an aggregate of 275,000 Private Placement
Units, at a price of $10.00 per Private Placement Unit, generating gross proceeds of $2,750,000. In addition, the Company consummated
the sale of an aggregate of 2,333,333 Private Placement Warrants, at a price of $0.75 per Private Placement Warrant, $1,750,000 in the
aggregate, to the Sponsor.
****
Following
the closing of the Initial Public Offering, on January 30, 2026, an amount of $100,000,000 ($10.00 per Unit) from the net proceeds of
the sale of the Units, Private Placement Units, and Private Placement Warrants was placed in the Trust Account.
On
January 30, 2026, the Company fully settled the $97,671 outstanding balance of the Promissory Note.
On
January 30, 2026, the underwriters were paid in cash an underwriting discount of $1,500,000 simultaneously with the closing of the Initial
Public Offering. In addition, the underwriters are entitled to a deferred underwriting discount of $3,500,000 in the aggregate.
On
February 12, 2026, the Company consummated the closing of an additional 182,300 Units sold pursuant to the underwriters partial
exercise of their over-allotment option, generating gross proceeds of $1,823,000. On February 12, 2026, simultaneously with the sale
of the additional Units, the Company consummated the private sale of an additional 2,280 Private Placement Units to the Sponsor and underwriters
generating gross proceeds of $22,800. Of those 2,280 Private Placement Units, the Sponsor purchased 457 Private Placement Units while
the underwriters purchased 1,823 Private Placement Units. In addition, on February 12, 2026, simultaneously with the sale of the additional
Units, the Company also consummated the private sale of an additional 6,060 Private Placement Warrants to the Sponsor generating gross
proceeds of $4,545. Following the sale of the additional Units, all of the net proceeds from the sale of additional Units and additional
Private Placement Units and Private Placement Warrants totaling to $1,823,000 have been added in the Trust Account. The underwriters
were entitled to a cash underwriting discount of $0.15 per additional Unit or $27,345 in aggregate, paid on February 12, 2026. Additionally,
the underwriters are entitled to a deferred underwriting discount of 3.50% of the gross proceeds of the Initial Public Offering held
in the Trust Account, additional $63,805 in the aggregate, due upon the completion of the Companys Initial Business Combination
subject to the terms of the underwriting agreement. As a result of the partial exercise by the underwriters of the over-allotment option,
60,767 founder shares were no longer subject to forfeiture. The underwriters had 45 days from the date of the Initial Public Offering
to purchase the remaining 1,317,700 Units. On March 14, 2026, the underwriters over-allotment option expired, resulting in 439,233
founder shares being forfeited to the Company and the Company closed the remaining $82,463 over-allotment option liability against accumulated
deficit.
| F-15 | |
| | |
****
SIGNATURES
Pursuant
to the requirements of Section 13 or 15(d) of the Securities Act of 1934, as amended, the registrant has duly caused this Annual Report
on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized, on March 30, 2026.
| 
| 
United Acquisition Corp. I | |
| 
| 
| 
| |
| 
| 
By: | 
/s/ Paul Packer | |
| 
| 
Name: | 
Paul Packer | |
| 
| 
Title: | 
Chief Executive Officer, Chief Financial Officer and
Chairman | |
Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, this Annual Report on Form 10-K has been signed by the following
persons in the capacity and on the dates indicated.
| 
Name | 
| 
Position | 
| 
Date | |
| 
| 
| 
| 
| 
| |
| 
/s/ Paul Packer | 
| 
Chairman, Director and Chief
Executive Officer | 
| 
March 30, 2026 | |
| 
Paul Packer | 
| 
(Principal Executive Officer) | 
| 
| |
| 
| 
| 
| 
| 
| |
| 
/s/ Paul Packer | 
| 
Chief Financial Officer | 
| 
March 30, 2026 | |
| 
Paul Packer | 
| 
(Principal Financial and
Accounting Officer) | 
| 
| |
| 
| 
| 
| 
| 
| |
| 
/s/ Johnny DeStefano | 
| 
Director | 
| 
March 30, 2026 | |
| 
Johnny DeStefano | 
| 
| 
| 
| |
| 
| 
| 
| 
| 
| |
| 
/s/ Timothy Hasara | 
| 
Director | 
| 
March 30, 2026 | |
| 
Timothy Hasara | 
| 
| 
| 
| |
| 
| 
| 
| 
| 
| |
| 
/s/ Thomas Hicks Jr. | 
| 
Director | 
| 
March 30, 2026 | |
| 
Thomas Hicks Jr. | 
| 
| 
| 
| |
| 
| 
| 
| 
| 
| |
| 
/s/ John Horne | 
| 
Director | 
| 
March 30, 2026 | |
| 
John Horne | 
| 
| 
| 
| |
| 56 | |