Item 1A. Risk Factors
Item 1A. Risk Factors.
Factors that could cause our actual results to
differ materially from those in this report include the risk factors described in our final prospectus for our Initial Public Offering.
As of the date of this report, there have been no material changes to the risk factors disclosed in our final prospectus for our Initial
Public Offering filed with the SEC, except as described below.
The New York Stock Exchange may delist our securities from trading
on its exchange, which could limit investors’ ability to make transactions in our securities and subject us to additional trading
restrictions.
Our Class A ordinary shares, rights and units are listed on the New
York Stock Exchange (“NYSE”). We are subject to compliance with the NYSE’s continued listing requirements in order to
maintain the listing of our securities on the NYSE. Such continued listing requirements for the Class A ordinary shares include:
● maintaining an average aggregate global market capitalization
of at least $50,000,000 or an average aggregate global market capitalization attributable to publicly-held Class A ordinary shares of
at least $40,000,000, excluding Class A ordinary shares held by our directors, officers, or their immediate families and other concentrated
holdings of ten percent or greater, in each case measured over thirty consecutive trading days;
● 300 public shareholders; and
● 600,000 publicly-held Class A ordinary shares.
On February 6, 2026, we received a notice from the NYSE that we were
not in compliance with NYSE listing standard 802.01B because we had fallen below compliance with the 300 public shareholders requirement.
In accordance with the NYSE listing requirements, we submitted a plan that demonstrated how we expected to return to compliance with NYSE
listing standard 802.01B. The notice has no immediate impact on the listing or trading of our securities on the NYSE. If the NYSE approves
our plan, our securities are expected to continue to be listed and traded on the NYSE during the applicable cure period, subject to our
compliance with other NYSE listing standards and periodic review by the NYSE of our progress under the plan.
We cannot assure you that we will continue to meet the NYSE’s
continued listing requirements. If our securities do not meet the NYSE’s continued listing requirements, the NYSE may delist our
securities from trading on its exchange. If the NYSE delists any of our securities from trading on its exchange and we are not able to
list such securities on another national securities exchange, we expect such securities could be quoted on an over-the-counter market.
If this were to occur, we could face significant material adverse consequences, including:
● a limited availability of market quotations for our securities;
● reduced liquidity for our securities;
● the possibility that the Class A ordinary shares could be
deemed a “penny stock” which will require brokers trading in Class A ordinary shares to adhere to more stringent rules and
possibly result in a reduced level of trading activity in the secondary trading market for our securities;
● a limited amount of news and analyst coverage; and
● a decreased ability to issue additional securities or obtain
additional financing in the future.
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The National Securities Markets Improvement Act of 1996, which is a
federal statute, prevents or preempts the states from regulating the sale of certain securities, which are referred to as “covered
securities.” Our Class A ordinary shares, units and rights currently qualify as covered securities under such statute. Although
the states are preempted from regulating the sale of covered securities, the federal statute does allow the states to investigate companies
if there is a suspicion of fraud, and, if there is a finding of fraudulent activity, then the states can regulate or bar the sale of covered
securities in a particular case. While we are not aware of a state having used these powers to prohibit or restrict the sale of securities
issued by blank check companies, other than the State of Idaho, certain state securities regulators view blank check companies unfavorably
and might use these powers, or threaten to use these powers, to hinder the sale of securities of blank check companies in their states.
Further, if we were no longer listed on the NYSE, our securities would not qualify as covered securities under such statute and we would
be subject to regulation in each state in which we offer our securities, including in connection with our initial Business Combination,
which may negatively impact our ability to consummate our initial Business Combination.
Item 2. Unregistered Sales of Equity Securities
and Use of Proceeds.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures .
None.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.