Item 1A. Risk Factors
Item 1A.
Risk Factors.
As a smaller reporting company
under Rule 12b-2 of the Exchange Act, we are not required to include risk factors in this Report. However, the following are brief descriptions
of material risks, uncertainties and other factors that could have a material effect on us and our operations:
Risks Relating to our Search for, and Consummation of or Inability
to Consummate, a Business Combination
● we are a blank check company with no operating history and no operating
revenues, and our shareholders have a limited basis on which to evaluate our ability to achieve our business objective, which is completing
an initial Business Combination;
● we
may not be able to complete our initial Business Combination, within the Combination Period, in which case we would liquidate and redeem
our Public Shares;
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● we
may seek Business Combination opportunities with a high degree of complexity that require significant operational improvements, which
could delay or prevent us from achieving our desired results;
● 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;
● we may issue our Ordinary Shares to our shareholders in connection
with our initial Business Combination at a price that is less than the prevailing market price of our Ordinary Shares at that time;
● our
Public Shareholders may not be afforded an opportunity to vote on our proposed initial Business Combination, and even if we hold a vote,
holders of our Founder Shares will participate in such vote, which means we may complete our initial Business Combination even though
a majority of our Public Shareholders do not support such a combination;
● as
the number of SPACs evaluating targets increases, attractive targets may become scarcer and there may be more competition for attractive
targets, or such attractive targets may not be interested in consummating a Business Combination with a SPAC due to a negative public
perception of mergers involving SPACs. This could increase the cost of our initial Business Combination and could even result in our
inability to find a target or to consummate an initial Business Combination;
● 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;
● we
may engage one or more of the Underwriters or one of their respective affiliates to provide additional services to us after the Initial
Public Offering, which may include acting as mergers and acquisitions advisor in connection with an initial Business Combination or as
placement agent in connection with a related financing transaction. The Underwriters are entitled to receive the Deferred Fee that will
be released from the Trust Account only upon completion of an initial Business Combination. These financial incentives may cause the
Underwriters to have potential conflicts of interest in rendering any such additional services to us after the Initial Public Offering,
including, for example, in connection with the sourcing and consummation of an initial Business Combination;
● 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;
● resources
could be wasted on researching Business Combinations targets that are not completed, which could materially adversely affect subsequent
attempts to locate and acquire or merge with another business. If we have not completed our initial Business Combination within the Combination
Period, our Public Shareholders may receive only the Redemption Price, or less than such amount in certain circumstances, on the liquidation
of our Trust Account and our Rights will expire worthless;
● recent
fluctuations in inflation and interest rates in the United States and elsewhere could make it more difficult for us to consummate an
initial Business Combination;
● changes
in laws or regulations (including the adoption of policies by governing administrations), or a failure to comply with any laws and regulations,
may adversely affect our business, including our ability to negotiate and complete our initial Business Combination, and results of operations;
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● in
order to effectuate an initial Business Combination, SPACs have, in the recent past, amended various provisions of their memorandums
and articles of association, and other governing instruments. We cannot assure our shareholders that we will not seek to amend our Amended
and Restated Articles or governing agreement in a manner that will make it easier for us to complete our initial Business Combination
that our shareholders may not support;
● changes
in international trade policies, tariffs and treaties affecting imports and exports may have a material adverse effect on our search
for an initial Business Combination target or the performance or business prospects of a post-Business Combination company
● adverse
developments affecting the financial services industry, including events or concerns involving liquidity, defaults or non-performance
by financial institutions, could adversely affect our business, financial condition or results of operations, or our Business Combination
prospects;
● cyber incidents or attacks directed
at us or third parties could result in information theft, data corruption, operational disruption and/or financial loss, as well as impact
our ability to consummate an initial Business Combination;
● if
we are deemed to be an investment company under the Investment Company Act, we may be required to institute burdensome compliance requirements
and our activities may be restricted, which may make it difficult for us to complete our initial Business Combination;
● if
we seek shareholder approval of our initial Business Combination, our Sponsor and Management Team have agreed to vote in favor of such
initial Business Combination, regardless of how our Public Shareholders vote. As such, under certain circumstances, we may not need any
Public Shares in addition to Founder Shares to be voted in favor of our initial Business Combination to approve an initial Business Combination;
● our
Public Shareholders’ only opportunity to effect their investment decision regarding a potential Business Combination may be limited
to the exercise of their right to redeem their Public Shares from us for cash;
● the
ability of our Public Shareholders to redeem their Public Shares for cash may make our financial condition unattractive to potential
Business Combination targets, which may make it difficult for us to enter into a Business Combination with a target;
● the
ability of our Public Shareholders to exercise redemption rights with respect to a large number of our Ordinary Shares and the payment
of the Deferred Fee may not allow us to complete the most desirable Business Combination or optimize our capital structure, and may materially
dilute Public Shareholders’ investment in us;
● the
ability of our Public Shareholders to exercise redemption rights with respect to a large number of our Ordinary Shares could increase
the probability that our initial Business Combination would be unsuccessful and that our Public Shareholders would have to wait for liquidation
in order to redeem their Public Shares;
● the
requirement that we complete our initial Business Combination within the Combination Period may give potential target businesses leverage
over us in negotiating a Business Combination and may limit the time we have in which to conduct due diligence on potential Business
Combination targets, in particular as we approach the end of the Combination Period, which could undermine our ability to complete our
initial Business Combination on terms that would produce value for our shareholders;
● we
may decide not to extend the Combination Period, in which case we would liquidate and redeem our Public Shares, and the Rights would
be worthless;
● if
we seek shareholder approval of our initial Business Combination, our Sponsor, directors, officers, advisors and their respective affiliates
may elect to purchase Public Shares or Public Rights from Public Shareholders, which may influence a vote on a proposed Business Combination
and reduce the public “float” of our Public Shares or Public Rights;
● if
a Public Shareholder fails to receive notice of our offer to redeem their Public Shares in connection with our initial Business Combination,
or fails to comply with the procedures for submitting or tendering their Public Shares, such Public Shares may not be redeemed;
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● our
Public Shareholders will not be entitled to protections normally afforded to shareholders of other blank check companies subject to Rule 419
of the Securities Act;
● if
we seek shareholder approval of our initial Business Combination and we do not conduct redemptions pursuant to the tender offer rules,
and if a shareholder or a “group” of shareholders are deemed to hold in excess of 15% of our Class A Ordinary Shares, they
may lose the ability to redeem all such Public Shares in excess of 15% of our Class A Ordinary Shares;
● because
of our limited resources and the significant competition for Business Combination opportunities, it may be more difficult for us to complete
our initial Business Combination. If we are unable to complete our initial Business Combination, our Public Shareholders may receive
only their pro rata portion of the funds in the Trust Account that are available for distribution to Public Shareholders, and our Rights
will expire worthless;
● if
the net proceeds of the Initial Public Offering and Private Placement not being held in the Trust Account are insufficient to allow us
to operate for at least the duration of the Combination Period, it could limit the amount available to fund our search for a target business
or businesses and complete our initial Business Combination, and we will depend on loans from our Sponsor or Management Team to fund
our search and to complete our initial Business Combination;
● if
we are unable to consummate our initial Business Combination within the Combination Period, our Public Shareholders may be forced to
wait beyond November 6, 2026 before redemption from our Trust Account;
● we
may not hold an annual general meeting until after the consummation of our initial Business Combination, which could delay the opportunity
for our Public Shareholders to discuss company affairs with Management, and the holders of our Class A Ordinary Shares will not have
the right to vote on the appointment or removal of directors or continuing our Company in a jurisdiction outside the Cayman Islands until
after the consummation of our initial Business Combination;
● since
only holders of our Class B Ordinary Shares have the right to vote on the appointment of directors prior to the consummation of
the initial Business Combination, Nasdaq considers us to be a “controlled company” within the meaning of the Nasdaq Rules
and, as a result, we may qualify for exemptions from certain corporate governance requirements;
● our
Sponsor controls the appointment of our Board of Directors until consummation of our initial Business Combination and holds a substantial
interest in us. As a result, it will appoint all of our directors prior to the consummation of our initial Business Combination and may
exert a substantial influence on actions requiring a shareholder vote, potentially in a manner that our Public Shareholders do not support;
● because
we are neither limited to evaluating a target business in a particular industry sector nor have we selected any target businesses with
which to pursue our initial Business Combination, our shareholders are unable to ascertain the merits or risks of any particular target
business’ operations;
● we
may seek Business Combination opportunities in industries or sectors that may be outside of our Management’s areas of expertise;
● 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;
● we
are not required to obtain an opinion from an independent investment banking firm or from another independent entity that commonly renders
valuation opinions, and consequently, our shareholders may have no assurance from an independent source that the price we are paying
for the business is fair to our shareholders from a financial point of view;
● we
may issue additional Class A Ordinary Shares or preference shares to complete our initial Business Combination or under an employee incentive
plan after completion of our initial Business Combination. We may also issue Class A Ordinary Shares upon the conversion of the Founder
Shares at a ratio greater than one-to-one at the time of our initial Business Combination as a result of the anti-dilution provisions
contained therein. Any such issuances would dilute the interest of our shareholders and likely present other risks;
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● unlike
some other similarly structured SPACs, our Sponsor, officers and directors will receive additional Class A Ordinary Shares if we issue
certain shares to consummate an initial Business Combination;
● we
may engage in a Business Combination with one or more target businesses that have relationships with entities that may be affiliated
with our Sponsor, officers, directors or existing holders, which may raise potential conflicts of interest;
● 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;
● we
may only be able to complete one Business Combination with the proceeds of the Initial Public Offering and the Private Placement, which
will cause us to be solely dependent on a single business, and which may have a limited number of products or services. This lack of
diversification may negatively impact our operations and profitability;
● we
do not have a specified maximum redemption threshold. The absence of such a redemption threshold may make it possible for us to complete
our initial Business Combination when a substantial majority of our Public Shareholders do not agree;
● the
provisions of our Amended and Restated Articles that relate to our pre-Business Combination activity (and corresponding provisions governing
the release of funds from our Trust Account) may be amended with a Special Resolution of our shareholders, which is a lower
amendment threshold than that of some other SPACs. It may be easier for us, therefore, to amend the Amended and Restated Articles to
facilitate the completion of an initial Business Combination that some of our Public Shareholders may not support;
● because
we must furnish our shareholders with financial statements of our Business Combination target, we may lose the ability to complete an
otherwise advantageous initial Business Combination with some prospective target businesses;
●
compliance obligations under the Sarbanes-Oxley Act may make it more difficult for us to effectuate our initial Business Combination, require substantial financial and management resources, and increase the time and costs of completing an initial Business Combination;
● if our initial Business Combination involves a company organized
under the laws of a state of the United States (or any subdivision thereof) , the Excise Tax could be imposed on us in connection
with redemptions of our Ordinary Shares after or in connection with such initial Business Combination;
Risks Relating to the Post-Business Combination
Company
● the
share price of the post-Business Combination company may be less than the Redemption Price of our Public Shares;
● the
officers and directors of an acquisition candidate may resign upon completion of our initial Business Combination. The loss of a Business
Combination target’s key personnel could negatively impact the operations and profitability of our post-combination business;
● subsequent
to our completion of our initial Business Combination, we may be required to take write-downs or write-offs, restructuring and impairment
or other charges that could have a significant negative effect on our financial condition, results of operations and the price of our
securities, which could cause our shareholders to lose some or all of their investment;
● our
Management may not be able to maintain control of a target business after our initial Business Combination. We cannot provide assurance
that, upon loss of control of a target business, new management will possess the skills, qualifications or abilities necessary to profitably
operate such business;
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● we
may have a limited ability to assess the management of a prospective target business and, as a result, may affect our initial Business
Combination with a target business whose management may not have the skills, qualifications or abilities to manage a public company;
● our
initial Business Combination and our structure thereafter may not be tax-efficient to our shareholders and Rights holders. As a result
of our Business Combination, our tax obligations may be more complex, burdensome and/or uncertain;
Risks Relating to Acquiring or Operating a
Business in Foreign Countries
● we
may not be able to complete an initial Business Combination because such initial Business Combination may be subject to regulatory review
and approval requirements, including foreign investment regulations and review by government entities such as the Committee on Foreign
Investment in the United States, or may be ultimately prohibited;
● if
we effect our initial Business Combination with a company located outside of the United States, we would be subject to a variety of additional
risks that may adversely affect us;
● we
may reincorporate in, or transfer by way of continuation to, another jurisdiction, which may result in taxes imposed on our shareholders
or Rights holders.
● we
may reincorporate in or transfer by way of continuation to another jurisdiction in connection with our initial Business Combination,
and the laws of such jurisdiction may govern some or all of our future material agreements and we may not be able to enforce our legal
rights;
● we
are subject to changing law and regulations regarding regulatory matters, corporate governance and public disclosure that have increased
both our costs and the risk of non-compliance;
● if
our Management following our initial Business Combination is unfamiliar with United States securities laws, they may have to expend time
and resources becoming familiar with such laws, which could lead to various regulatory issues;
● exchange
rate fluctuations and currency policies may cause a target business’ ability to succeed in the international markets to be diminished;
● if
after our initial Business Combination, substantially all of our assets may be located in a foreign country and substantially all of
our revenue will be derived from our operations in such country. Accordingly, our results of operations and prospects will be subject,
to a significant extent, to the economic, political and legal policies, developments and conditions in the country in which we operate;
Risks Relating to our Management Team
● our
officers and directors allocate their time to other businesses thereby causing conflicts of interest in their determination as to how
much time to devote to our affairs. This conflict of interest could have a negative impact on our ability to complete our initial Business
Combination;
● changes
in the market for directors’ and officers’ liability insurance could make it more difficult and more expensive for us to
negotiate and complete an initial Business Combination;
● we
may not have sufficient funds to satisfy indemnification claims of our directors and officers;
● past
performance by our Management Team, our advisors and their respective affiliates, including investments and transactions in which they
have participated and businesses with which they have been associated, may not be indicative of future performance of an investment in
our Company;
● we
are dependent upon our officers and directors and their loss, or a reduction in the amount of time they can dedicate to our initial Business
Combination, could adversely affect our ability to operate;
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● our
ability to successfully effect our initial Business Combination and to be successful thereafter is dependent upon the efforts of our
key personnel, some of whom may join us following our initial Business Combination. The loss of key personnel could negatively impact
the operations and profitability of our post-combination business;
● the
ownership interest of our Sponsor may change, and our Sponsor may divest its ownership interest in us before identifying a Business Combination,
which could deprive us of key personnel and advisors;
● our
key personnel may negotiate employment or consulting agreements with a target business in connection with a particular Business Combination,
and a particular Business Combination may be conditioned on the retention or resignation of such key personnel. These agreements may
provide for them to receive compensation following our initial Business Combination and as a result, may cause them to have conflicts
of interest in determining whether a particular Business Combination is the most advantageous;
● our
officers and directors presently have, and any of them in the future may have additional, fiduciary or contractual obligations to other
entities, including other blank check companies, and, accordingly, may have conflicts of interest in allocating their time and in determining
to which entity a particular business opportunity should be presented;
● members
of our Management Team and Board of Directors have significant experience as founders, board members, officers, executives or employees
of other companies. Certain of those persons have been, are currently, or may become, involved in litigation, investigations or other
proceedings, including related to those companies or otherwise. This may have an adverse effect on us, which may impede our ability to
consummate an initial Business Combination;
● members
of our Management Team and affiliated companies may have been, and may in the future be, involved in civil disputes or governmental investigations
unrelated to our business;
Risks Relating to our Securities and Shareholder
Rights
● to
mitigate the risk that we might be deemed to be an investment company for purposes of the Investment Company Act, we may, at any time
(based on our Management Team’s ongoing assessment of all factors related to our potential status under the Investment Company
Act), instruct the trustee to liquidate the investments held in the Trust Account and instead to hold the funds in the Trust
Account in an interest-bearing demand deposit account at a bank until the earlier of the consummation of our initial Business Combination
or our liquidation. As a result, following the liquidation of investments in the Trust Account, we will likely receive less interest
on the funds held in the Trust Account than we would have had the Trust Account remained as initially invested, such that our Public
Shareholders would receive less upon any redemption or liquidation of our Company than what they would have received had the investments
not been liquidated;
● our
Public Shareholders may be held liable for claims by third parties against us to the extent of distributions received by them upon redemption
of their Public Shares;
● if
third parties bring claims against us, the proceeds held in the Trust Account could be reduced and the per-share redemption
amount received by Public Shareholders may be less than the Redemption Price;
● our
directors may decide not to enforce the indemnification obligations of our Sponsor, resulting in a reduction in the amount of funds in
the Trust Account available for distribution to our Public Shareholders;
● the
securities in which we invest the funds held in the Trust Account could bear a negative rate of interest, which could reduce the interest
income available for payment of taxes or reduce the value of the assets held in the Trust Account such that the per-share redemption
amount received by Public Shareholders may be less than the Redemption Price;
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● if,
before distributing the proceeds in the Trust Account to our Public Shareholders, we file a bankruptcy or insolvency petition or an involuntary
bankruptcy or insolvency petition is filed against us that is not dismissed, the claims of creditors in such proceeding may have priority
over the claims of our shareholders and the per-share amount that would otherwise be received by our Public Shareholders in connection
with our liquidation may be reduced;
● if,
after we distribute the proceeds in the Trust Account to our Public Shareholders, we file a bankruptcy or insolvency petition or an involuntary
bankruptcy or insolvency petition is filed against us that is not dismissed, a liquidator or a bankruptcy, insolvency or other court
may seek to recover such proceeds, and the members of our Board of Directors may be viewed as having breached their fiduciary duties
to us or our creditors, thereby exposing the members of our Board of Directors and us to claims of punitive damages;
● an
active market for our public securities may not continue, which would adversely affect the liquidity and price of our securities, and
our shareholders may have limited liquidity and trading;
● since
our Sponsor, directors and officers and any other holder of our Founder Shares will lose their entire investment in us if our initial
Business Combination is not completed (other than with respect to any Public Shares they may acquire during or after the Initial Public
Offering), and because our Sponsor, officers and directors and any other holder of our Founder Shares may profit substantially even under
circumstances in which our Public Shareholders would experience losses in connection with their investment, a conflict of interest may
arise in determining whether a particular Business Combination target is appropriate for our initial Business Combination;
● the
value of the Founder Shares following completion of our initial Business Combination is likely to be substantially higher than the nominal
price paid for them, even if the trading price of our Public Shares at such time is substantially less than the Redemption Price;
● Nasdaq
may delist our securities from trading on its exchange, which could limit shareholders’ ability to make transactions in our securities
and subject us to additional trading restrictions;
● our
Public Shareholders do not have any rights or interests in funds from the Trust Account, except under certain limited circumstances.
Therefore, to liquidate their investment, they may be forced to sell their Public Shares or Public Rights potentially at a loss;
● our
Sponsor paid an aggregate of $25,000, or approximately $0.003 per Founder Share and, accordingly, our Public Shareholders experience
immediate and substantial dilution from the purchase of our Class A Ordinary Shares;
● the
nominal purchase price paid by our Sponsor for the Founder Shares may result in significant dilution to the implied value of the Public
Shares upon the consummation of our initial Business Combination, and our Sponsor is likely to make a substantial profit on its investment
in us in the event we consummate an initial Business Combination, even if the Business Combination causes the trading price of our Ordinary
Shares to materially decline;
● because
we are incorporated under the laws of the Cayman Islands, our shareholders may face difficulties in protecting their interests, and their
ability to protect their rights through the U.S. Federal courts may be limited;
● after
our initial Business Combination, it is possible that a majority of our directors and officers will live outside the United States
and all of our assets will be located outside the United States; therefore, shareholders may not be able to enforce federal securities
laws or their other legal rights;
● provisions
in our Amended and Restated Articles may inhibit a takeover of us, which could limit the price shareholders might be willing to pay in
the future for our Class A Ordinary Shares and could entrench Management;
● our
Amended and Restated Articles provide that the courts of the Cayman Islands will be the exclusive forums for certain disputes between
us and our shareholders, which could limit our shareholders’ ability to obtain a favorable judicial forum for complaints against
us or our directors, officers or employees;
● whether
a redemption of Public Shares will be treated as a sale of such Class A Ordinary Shares for U.S. federal income tax purposes
will depend on a shareholder’s specific facts;
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● we may amend the terms of the Rights in a manner that may be adverse
to holders of Rights with the approval by the holders of at least 50% of the then outstanding Rights. As a result, the conversion ratio
of the Rights could be changed, the conversion period could be shortened and the number of Class A Ordinary Shares upon conversion
of a Right could be changed, all without Rights holder approval;
● the Rights Agreement designates the courts of the State of New York
or the United States District Court for the Southern District of New York as the sole and exclusive forum for certain types
of actions and proceedings that may be initiated by holders of our Rights, which could limit the ability of Rights holders to obtain a
favorable judicial forum for disputes with our Company;
● because
each Unit contains one Right to receive one fifteenth (1/15) of one Class A Ordinary Share upon consummation of our initial Business
Combination and only a whole Class A Ordinary Share will be issued in exchange for Rights, the Units may be worth less than units
of other SPACs;
● holders
of Class A Ordinary Shares are not entitled to vote on continuing our Company in a jurisdiction outside of the Cayman Islands;
● the
grant of registration rights to our Sponsor and other holders of our Private Placement Units (and their underlying securities) may make
it more difficult to complete our initial Business Combination, and the future exercise of such rights may adversely affect the market
price of our Class A Ordinary Shares;
● we
may be a passive foreign investment company, which could result in adverse United States federal income tax consequences to our U.S.
shareholders;
● we
are an emerging growth company and a smaller reporting company within the meaning of the Securities Act, and if we take advantage of
certain exemptions from disclosure requirements available to emerging growth companies or smaller reporting companies, this could make
our securities less attractive to shareholders and may make it more difficult to compare our performance with other public companies;
and
● we
may seek to extend the Combination Period, which could have a material adverse effect on the amount held in our Trust Account and other
adverse effects on our Company.
For more detailed descriptions
of these and other risks relating to our Company, see the section titled “Risk Factors” contained in our (i) IPO Registration
Statement and (ii) 2025 First Quarter Form 10-Q and 2025 Second Quarter Form 10- Q.
As of the date of this Report, there have been no material changes with respect to those risk factors, other
than as set forth below. Any of these previously disclosed risk factors could result in a significant or material adverse effect
on our results of operations or financial condition. Additional risks not presently known to us or that we currently deem immaterial may
also affect our ability to consummate an initial Business Combination. We may disclose changes to such risk factors or disclose additional
risk factors from time to time in our future filings with the SEC.
There is substantial doubt about our ability
to continue as a “going concern.”
In connection with our assessment
of going concern considerations under applicable accounting standards, Management has determined that our possible need for additional
financing to enable us negotiate and complete our initial Business Combination, as well as the deadline by which we may be required to
liquidate our Trust Account, raise substantial doubt about our ability to continue as a going concern through approximately one year from
the date the unaudited condensed financial statements included elsewhere in this Report were issued.
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Our search for an initial Business Combination,
and any target business with which we may ultimately consummate an initial Business Combination, may be materially adversely affected
by current global geopolitical conditions and armed conflicts in the Ukraine and Russia and in the Middle East between United States,
Israel and Iran and others, as well as by other events that are outside of our control.
Our ability to find a potential
target business and the business of any company with which we may consummate a Business Combination could be materially and adversely
affected by events that are outside of our control. For example, United States and global markets have experienced and may continue
to experience volatility and disruption following the geopolitical instability resulting from the ongoing Russia-Ukraine conflict and
the recent conflict in the Middle East and Southwest Asia between the United States, Israel and Iran and others. Recent hostilities between
the United States, Israel and Iran and others have caused significant disruption in the normal flow of oil, refined petroleum products
and related commodities, with consequent price rises and associated economic volatility. In response to such conflicts, the North Atlantic
Treaty Organization (“NATO”) deployed additional military forces to eastern Europe, and the United States, the United
Kingdom, the European Union and other countries have announced various sanctions and restrictive actions against Russia, Belarus and related
individuals and entities, including the removal of certain financial institutions from the Society for Worldwide Interbank Financial Telecommunication
(SWIFT) payment system. Certain countries, including the United States, have also provided and may continue to provide military aid
or other assistance to Ukraine and to Israel, or have undertaken or will undertake military strikes in locations related to the conflicts,
including but not limited to Iran, and there have been retaliatory military responses, increasing geopolitical tensions among a number
of nations.
The invasion of Ukraine by
Russia and the escalation of the conflict involving the United States, Israel and Iran and others in the Middle East and Southwest Asia
and the resulting measures that have been taken, and could be taken in the future, by NATO, the United States, the United Kingdom,
the European Union, Israel and its neighboring states and other countries have created global security concerns that could have a lasting
impact on regional and global economies. Although the length and impact of the ongoing conflicts and geopolitical turmoil are highly unpredictable,
they could lead to market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as supply
chain interruptions, changes in consumer or producer purchasing behavior and increased cyber-attacks against U.S. companies. Additionally,
any resulting sanctions could adversely affect the global economy and financial markets and lead to instability and lack of liquidity
in capital markets.
Similarly, other events outside
of our control, including natural disasters, climate-related events and pandemic or health crises (such as the COVID-19 pandemic) may
arise from time to time, and any such events may cause significant volatility and declines in the global markets and have disproportionate
impacts to certain industries or sectors and disruptions to commerce (including economic activity, travel and supply chain), and may adversely
affect the global economy or capital markets.
Any of the abovementioned
factors, or any other negative impact on the global economy, capital markets or other geopolitical conditions resulting from the Russian
invasion of Ukraine, the escalation of the conflict involving the United States, Israel and Iran and others in the Middle East and Southwest
Asia and subsequent sanctions or related actions, could adversely affect our search for an initial Business Combination and any target
business with which we may ultimately consummate an initial Business Combination.
The extent and duration of
the ongoing conflicts, resulting sanctions and any related market disruptions are impossible to predict, but could be substantial, particularly
if current or new sanctions continue for an extended period of time, if geopolitical tensions result in expanded military operations on
a global scale or if there are disruptions in the supply of oil or other commodities.
Any such disruptions may also
have the effect of heightening many of the other risks described in this Item. If these disruptions or other matters of global concern
continue for an extensive period of time, our ability to consummate an initial Business Combination, or the operations of a target business
with which we may ultimately consummate an initial Business Combination, may be materially adversely affected. In addition, our ability
to consummate a transaction may be dependent on the ability to raise equity or debt financing, which may be impacted by these and other
events, including as a result of increased market volatility or decreased availability of third-party financing on acceptable terms or
at all.
Military or other conflicts in Ukraine,
between the United States, Israel and Iran and others and other in the Middle East and Southwest Asia or other armed hostilities may lead
to increased volume and price volatility for publicly traded securities, or affect the operations or financial condition of potential
target companies, which could make it more difficult for us to consummate an initial Business Combination.
Military or other conflicts
in Ukraine, between the United States, Israel and Iran and others in the Middle East, and Southwest Asia or other armed hostilities may
lead to increased volume and price volatility for publicly traded securities, or affect the operations or financial condition of potential
target companies, and to other company or industry-specific, national, regional or international economic disruptions and economic uncertainty,
any of which could make it more difficult for us to identify a Business Combination target and consummate an initial Business Combination
on acceptable commercial terms, or at all.
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