Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 14, 2024 | |
Document Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-41101 | |
Entity Registrant Name | TLGY Acquisition Corp | |
Entity Incorporation, State or Country Code | E9 | |
Entity Tax Identification Number | 98-1603634 | |
Entity Address, Address Line One | 4001 Kennett Pike, Suite 302 | |
Entity Address, City or Town | Wilmington | |
Entity Address State Or Province | DE | |
Entity Address, Postal Zip Code | 19807 | |
City Area Code | 1 | |
Local Phone Number | 302-803-6849 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | true | |
Entity Central Index Key | 0001879814 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Transition Report | false | |
Units, each consisting of one Class A ordinary share, par value $.0001, and one-half of one redeemable warrant | ||
Document Information | ||
Title of 12(b) Security | Units, each consisting of one Class A ordinary share, par value $.0001, and one-half of one redeemable warrant | |
Trading Symbol | TLGYU | |
Security Exchange Name | NASDAQ | |
Ordinary Shares | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 9,467,207 | |
Class A ordinary shares | ||
Document Information | ||
Title of 12(b) Security | Class A ordinary shares, par value $0.0001 per share | |
Trading Symbol | TLGY | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 3,717,207 | |
Class B ordinary shares | ||
Document Information | ||
Entity Common Stock, Shares Outstanding | 5,750,000 | |
Redeemable warrants, each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50 per share | ||
Document Information | ||
Title of 12(b) Security | Redeemable warrants, each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50 per share | |
Trading Symbol | TLGYW | |
Security Exchange Name | NASDAQ |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Current Assets: | ||
Cash | $ 41,096 | $ 40,621 |
Prepaid expenses | 67,118 | 9,552 |
Total Current Assets | 108,214 | 50,173 |
Cash and investments held in Trust Account | 42,901,415 | 65,954,638 |
Total Assets | 43,009,629 | 66,004,811 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 232,645 | 525,076 |
Accrued offering costs | $ 5,000 | 5,000 |
Advances from related party | $ 111 | |
Other Liability, Current, Related Party, Type [Extensible Enumeration] | Related Parties | Related Parties |
Due to related party | $ 15,000 | $ 15,000 |
Total Current Liabilities | 3,763,170 | 3,090,187 |
Derivative warrant liabilities | 1,474,816 | 352,772 |
Deferred underwriting commission | 865,000 | 8,650,000 |
Total Liabilities | 6,102,986 | 12,092,959 |
COMMITMENTS AND CONTINGENCIES | ||
Shareholders' deficit: | ||
Preferred stock, $0.0001 par value; 5,000,000 shares authorized; none issued or outstanding at June 30, 2024 and December 31, 2023 | ||
Accumulated deficit | (5,995,347) | (12,043,361) |
Total Shareholders' Deficit | (5,994,772) | (12,042,786) |
LIABILITIES, ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION AND SHAREHOLDERS' DEFICIT | 43,009,629 | 66,004,811 |
Sponsor | ||
Current Liabilities: | ||
Convertible promissory note payable | 2,870,000 | 2,235,000 |
CPC Sponsor | ||
Current Liabilities: | ||
Convertible promissory note payable | 640,525 | |
Nonrelated Party | ||
Current Liabilities: | ||
Convertible promissory note payable | 310,000 | |
Class A ordinary shares subject to possible redemption | ||
Current Liabilities: | ||
Class A ordinary shares subject to possible redemption; 3,717,207 shares at redemption value of $11.54 at June 30, 2024 and 5,922,865 shares at redemption value of $11.13 at December 31, 2023) | 42,901,415 | 65,954,638 |
Class B ordinary shares | ||
Shareholders' deficit: | ||
Ordinary shares | $ 575 | $ 575 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preference shares, shares outstanding | 0 | 0 |
Class A ordinary shares | ||
Ordinary shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, authorized | 500,000,000 | 500,000,000 |
Class A ordinary shares subject to possible redemption | ||
Ordinary shares subject to possible redemption, shares outstanding | 3,717,207 | 5,922,865 |
Ordinary shares subject to possible redemption price (in dollars per share) | $ 11.54 | $ 11.13 |
Class A ordinary not subject to possible redemption | ||
Ordinary shares subject to possible redemption, shares outstanding | 3,717,207 | 5,922,865 |
Ordinary shares, issued | 0 | 0 |
Ordinary shares, outstanding | 0 | 0 |
Class B ordinary shares | ||
Ordinary shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, authorized | 50,000,000 | 50,000,000 |
Ordinary shares, issued | 5,750,000 | 5,750,000 |
Ordinary shares, outstanding | 5,750,000 | 5,750,000 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
EXPENSES | ||||
Administrative fee - related party | $ 15,000 | $ 45,000 | $ 60,000 | $ 90,000 |
General and administrative | 428,334 | 224,650 | 651,628 | 732,465 |
TOTAL EXPENSES | 443,334 | 269,650 | 711,628 | 822,465 |
OTHER INCOME (LOSS) | ||||
Income earned on Cash and Investments held in Trust Account | 663,042 | 871,053 | 1,527,236 | 3,142,604 |
Forgiveness of debt | 608,665 | 608,776 | ||
Change in fair value of derivative liabilities | (817,066) | (1,548,941) | (1,122,044) | (3,071,532) |
TOTAL OTHER INCOME (LOSS) | 454,641 | (677,888) | 1,013,968 | 71,072 |
Net income (loss) | $ 11,307 | $ (947,538) | $ 302,340 | $ (751,393) |
Class A ordinary shares subject to possible redemption | ||||
OTHER INCOME (LOSS) | ||||
Basic weighted average shares outstanding (in shares) | 4,105,015 | 7,318,182 | 5,013,940 | 12,083,375 |
Diluted weighted average shares outstanding (in shares) | 4,105,015 | 7,318,182 | 5,013,940 | 12,083,375 |
Basic net income (loss) per share (in dollars per share) | $ 0 | $ (0.07) | $ 0.03 | $ (0.04) |
Diluted net income (loss) per share (in dollars per share) | $ 0 | $ (0.07) | $ 0.03 | $ (0.04) |
Class B ordinary shares | ||||
OTHER INCOME (LOSS) | ||||
Basic weighted average shares outstanding (in shares) | 5,750,000 | 5,750,000 | 5,750,000 | 5,750,000 |
Diluted weighted average shares outstanding (in shares) | 5,750,000 | 5,750,000 | 5,750,000 | 5,750,000 |
Basic net income (loss) per share (in dollars per share) | $ 0 | $ (0.07) | $ 0.03 | $ (0.04) |
Diluted net income (loss) per share (in dollars per share) | $ 0 | $ (0.07) | $ 0.03 | $ (0.04) |
STATEMENTS OF CHANGES IN SHAREH
STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT) - USD ($) | Class B ordinary shares Ordinary Shares | Accumulated Deficit | Total |
Balance at the beginning at Dec. 31, 2022 | $ 575 | $ (8,597,009) | $ (8,596,434) |
Balance at the beginning, (in shares) at Dec. 31, 2022 | 5,750,000 | ||
Increase (Decrease) in Stockholders' Equity | |||
Current period remeasurement to redemption value | (2,671,551) | (2,671,551) | |
Net income (loss) | 196,145 | 196,145 | |
Balance at the end at Mar. 31, 2023 | $ 575 | (11,072,415) | (11,071,840) |
Balance at the end, (in shares) at Mar. 31, 2023 | 5,750,000 | ||
Balance at the beginning at Dec. 31, 2022 | $ 575 | (8,597,009) | (8,596,434) |
Balance at the beginning, (in shares) at Dec. 31, 2022 | 5,750,000 | ||
Increase (Decrease) in Stockholders' Equity | |||
Net income (loss) | (751,393) | ||
Balance at the end at Jun. 30, 2023 | $ 575 | (13,491,006) | (13,490,431) |
Balance at the end, (in shares) at Jun. 30, 2023 | 5,750,000 | ||
Balance at the beginning at Mar. 31, 2023 | $ 575 | (11,072,415) | (11,071,840) |
Balance at the beginning, (in shares) at Mar. 31, 2023 | 5,750,000 | ||
Increase (Decrease) in Stockholders' Equity | |||
Current period remeasurement to redemption value | (1,471,053) | (1,471,053) | |
Net income (loss) | (947,538) | (947,538) | |
Balance at the end at Jun. 30, 2023 | $ 575 | (13,491,006) | (13,490,431) |
Balance at the end, (in shares) at Jun. 30, 2023 | 5,750,000 | ||
Balance at the beginning at Dec. 31, 2023 | $ 575 | (12,043,361) | (12,042,786) |
Balance at the beginning, (in shares) at Dec. 31, 2023 | 5,750,000 | ||
Increase (Decrease) in Stockholders' Equity | |||
Current period remeasurement to redemption value | (1,194,194) | (1,194,194) | |
Net income (loss) | 291,033 | 291,033 | |
Balance at the end at Mar. 31, 2024 | $ 575 | (12,946,522) | (12,945,947) |
Balance at the end, (in shares) at Mar. 31, 2024 | 5,750,000 | ||
Balance at the beginning at Dec. 31, 2023 | $ 575 | (12,043,361) | (12,042,786) |
Balance at the beginning, (in shares) at Dec. 31, 2023 | 5,750,000 | ||
Increase (Decrease) in Stockholders' Equity | |||
Net income (loss) | 302,340 | ||
Balance at the end at Jun. 30, 2024 | $ 575 | (5,995,347) | (5,994,772) |
Balance at the end, (in shares) at Jun. 30, 2024 | 5,750,000 | ||
Balance at the beginning at Mar. 31, 2024 | $ 575 | (12,946,522) | (12,945,947) |
Balance at the beginning, (in shares) at Mar. 31, 2024 | 5,750,000 | ||
Increase (Decrease) in Stockholders' Equity | |||
Current period remeasurement to redemption value | (845,132) | (845,132) | |
Underwriter fee waiver | 7,785,000 | 7,785,000 | |
Net income (loss) | 11,307 | 11,307 | |
Balance at the end at Jun. 30, 2024 | $ 575 | $ (5,995,347) | $ (5,994,772) |
Balance at the end, (in shares) at Jun. 30, 2024 | 5,750,000 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows From Operating Activities: | ||
Net income (loss ) | $ 302,340 | $ (751,393) |
Adjustments to reconcile net (loss) to net cash used in operating activities: | ||
Income earned on cash and investments held in the Trust Account | (1,527,236) | (3,142,604) |
Loss on change in fair value of derivative warrant liabilities | 1,122,044 | 3,071,532 |
Forgiveness of debt | (608,776) | |
Changes in operating assets and liabilities: | ||
Prepaid expenses | (57,566) | 117,495 |
Changes in accrued offering costs | (15,000) | |
Accounts payable and accrued expenses | (158,766) | 92,167 |
Net Cash Used In Operating Activities | (927,960) | (627,803) |
Cash Flows from Investing Activities: | ||
Cash deposited into Trust Account | (512,090) | (1,000,000) |
Cash withdrawn from Trust Account | 25,092,549 | 163,150,810 |
Net Cash Provided By Investing Activities | 24,580,459 | 162,150,810 |
Cash Flows from Financing Activities: | ||
Redemptions of Class A ordinary shares | (25,092,549) | (163,150,810) |
Net Cash Used In Financing Activities | (23,652,024) | (162,050,810) |
Net change in cash | 475 | (527,803) |
Cash at beginning of period | 40,621 | 585,241 |
Cash at end of period | 41,096 | 57,438 |
Supplemental disclosure of non-cash financing activities: | ||
Partial waiver of deferred underwriting commission | 7,785,000 | |
Sponsor | ||
Cash Flows from Financing Activities: | ||
Proceeds from promissory note | 635,000 | $ 1,100,000 |
CPC Sponsor | ||
Cash Flows from Financing Activities: | ||
Proceeds from promissory note | 640,525 | |
Third party | ||
Cash Flows from Financing Activities: | ||
Proceeds from promissory note | $ 165,000 |
DESCRIPTION OF ORGANIZATION AND
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | 6 Months Ended |
Jun. 30, 2024 | |
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | NOTE 1 — DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS TLGY Acquisition Corporation (the “Company”) was incorporated in the Cayman Islands on May 21, 2021. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). The Company is not limited to a particular industry or sector for purposes of consummating a Business Combination. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies. As of June 30, 2024, the Company had not commenced any operations. All activity for the period from May 21, 2021 (inception) through June 30, 2024 were organizational activities and those necessary to prepare for the Initial Public Offering, described below, and, since the completion of our Initial Public Offering, searching for a target to consummate an initial business combination. The Company will not generate any operating revenues until after the completion of an initial Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income from the proceeds derived from the Initial Public Offering. The Company has selected December 31 as its fiscal year end. The registration statement for the Company’s Initial Public Offering was declared effective on November 30, 2021. On December 3, 2021, the Company consummated the Initial Public Offering of 20,000,000 units (“Units” and, with respect to the ordinary shares included in the Units being offered, the “Public Shares”), generating gross proceeds of $200,000,000, which is described in Note 4. Simultaneously with the closing of the Initial Public Offering, the Company consummated the private sale (the “Private Placement”) of an aggregate of 10,659,500 warrants (the “Private Placement Warrants”) to TLGY Sponsors LLC (the “Sponsor”) at a purchase price of $1.00 per Private Placement Warrant, generating gross proceeds to the Company in the amount of $10,659,500. On December 8, 2021, the Company consummated the closing of the sale of an additional 3,000,000 Units (the “Option Units”) at $10.00 per Option Unit, pursuant to the underwriters’ exercise in full of their over-allotment option, generating gross proceeds of $30,000,000. The Company also consummated the closing of the sale of an additional 600,000 Private Placement Warrants at $1.00 per Private Placement Warrant, generating gross proceeds of $600,000, to the Sponsor in respect of its obligation to purchase such additional Private Placement Warrants upon the exercise of the underwriters’ over-allotment option. Transaction costs amounted to $14,183,689 consisting of $4,000,000 of underwriting fees, $8,650,000 of deferred underwriting fees payable (“Deferred Underwriting Fees”) (which are held in a trust account with Continental Stock Transfer & Trust Company acting as trustee (the “Trust Account”)) and $533,689 of other offering costs related to the Initial Public Offering. Cash of $41,096 was held outside of the Trust Account on June 30, 2024 and was available for working capital purposes. As described below, in May 2024, the Company entered into a certain waiver with Mizuho Securities USA LLC (“Mizuho Waiver”), pursuant to which Mizuho agreed to waive the Deferred Underwriting Fees and agreed to a forfeiture of all 300,300 Class B ordinary shares acquired by it at the time of, and deemed compensation for, the IPO. The Company believes that Mizuho was acting as a representative of all of the underwriters on the IPO, however, as a precautionary effort, the Company is in the process of obtaining a written confirmation from all other underwriters on the IPO, to confirm that the Deferred Underwriting Fees were waived under the Mizuho Waiver. The Company intends to receive this waiver during the third quarter of 2024. As of the date of this Quarterly Report, the forfeiture of the 300,300 Class B ordinary shares has not yet been completed. Following the closing of the Initial Public Offering on December 3, 2021 and the sale of the underwriters’ overallotment units on December 8, 2021, an amount of $234,600,000 ($10.20 per Public Share) from the net proceeds of the sale of the Units in the Initial Public Offering and the Private Placement was placed in the Trust Account which may be invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 185 days or less or in any open-ended investment company that holds itself out as a money market fund selected by the Company meeting the conditions of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the consummation of a Business Combination or (ii) the distribution of the Trust Account to the Company’s shareholders, as described below. The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and the sale of the Private Placement Warrants, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. The stock exchange listing rules require that the Business Combination must be with one or more operating businesses or assets with a fair market value equal to at least 80% of the assets held in the Trust Account (as defined below) (excluding the amount of deferred underwriting commissions and taxes payable on the income earned on the Trust Account). The Company will only complete a Business Combination if the post-Business Combination company owns or acquires 50% or more of the issued and outstanding voting securities of the target or otherwise acquires a controlling interest in the target business 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”). There is no assurance that the Company will be able to successfully effect a Business Combination. The Company will provide the holders of the outstanding Public Shares (the “Public Shareholders”) with the opportunity to redeem all or a portion of their Public Shares either (i) in connection with a shareholder meeting called to approve the Business Combination or (ii) by means of a tender offer in connection with the Business Combination. The decision as to whether the Company will seek shareholder approval of a Business Combination or conduct a tender offer will be made by the Company. The Public Shareholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account (initially anticipated to be $10.20 per Public Share, plus any pro rata interest then in the Trust Account, net of taxes payable). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants. The Public Shares subject to redemption will be recorded at a redemption value and classified as temporary equity upon the completion of the Initial Public Offering in accordance with the Accounting Standards Codification (“ASC”) Topic 480 “ Distinguishing Liabilities from Equity All of the Public Shares contain a redemption feature which allows for the redemption of such Public Shares in connection with the Company’s liquidation, if there is a shareholder vote or tender offer in connection with the Company’s Business Combination and in connection with certain amendments to the Company’s amended and restated memorandum and articles of association (the “Amended and Restated Memorandum and Articles of Association”). In accordance with the rules of the U.S. Securities and Exchange Commission (the “SEC”) and its guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99, redemption provisions not solely within the control of a company require ordinary shares subject to redemption to be classified outside of permanent equity. Given that the Public Shares will be issued with other freestanding instruments (i.e., public warrants), the initial carrying value of the Class A ordinary shares classified as temporary equity will be the allocated proceeds determined in accordance with ASC 470-20. The Class A ordinary shares are subject to ASC 480-10-S99. If it is probable that the equity instrument will become redeemable, the Company has the option to either (i) accrete changes in the redemption value over the period from the date of issuance (or from the date that it becomes probable that the instrument will become redeemable, if later) to the earliest redemption date of the instrument or (ii) recognize changes in the redemption value immediately as they occur and adjust the carrying amount of the instrument to equal the redemption value at the end of each reporting period. The Company has elected to recognize the changes immediately. The Public Shares are redeemable and will be classified as such on the balance sheet until such date that a redemption event takes place. Redemptions of the Company’s Public Shares may be subject to the satisfaction of conditions, including minimum cash conditions, pursuant to an agreement relating to the Company’s Business Combination. If the Company seeks shareholder approval of the Business Combination, the Company will proceed with a Business Combination only if the Company receives an ordinary resolution under Cayman Islands law approving a Business Combination, which requires the affirmative vote of a majority of the shareholders who attend and vote at a general meeting of the Company, or such other vote as required by law or stock exchange rule. If a shareholder vote is not required and the Company does not decide to hold a shareholder vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Memorandum and Articles of Association, conduct the redemptions pursuant to the tender offer rules of the SEC, and file tender offer documents containing substantially the same information as would be included in a proxy statement with the SEC prior to completing a Business Combination. If the Company seeks shareholder approval in connection with a Business Combination, the Sponsor has agreed to vote its Founder Shares (as defined in Note 6) and any Public Shares purchased during or after the Initial Public Offering in favor of approving a Business Combination. Additionally, 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 a proposed Business Combination. Additionally, 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. Notwithstanding the foregoing, if the Company seeks shareholder approval of the Business Combination and the Company does not conduct redemptions pursuant to the tender offer rules, a Public Shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than an aggregate of 15% of the Public Shares without the Company’s prior written consent. The Sponsor has agreed (a) to waive its redemption rights with respect to any Founder Shares and Public Shares held by it in connection with the completion of a Business Combination and (b) not to propose an amendment to the Amended and Restated Memorandum and Articles of Association (i) to modify the substance or timing of the Company’s obligation to allow redemption in connection with the Company’s initial Business Combination or to redeem 100% of the Public Shares if the Company does not complete a Business Combination within the Combination Period (as defined below) or (ii) with respect to any other provision relating to shareholders’ rights or pre-initial business combination activity, unless the Company provides the Public Shareholders with the opportunity to redeem their Public Shares upon approval of any such amendment. If the Company has not completed a Business Combination by September 16, 2024 (or up to April 16, 2025 if the period of time to consummate a business combination is extended in accordance with the terms of the Amended and Restated Memorandum and Articles of Association) (the “Combination Period”), the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten The Sponsor has agreed to waive its rights to liquidating distributions from the Trust Account with respect to the Founder Shares it will receive if the Company fails to complete a Business Combination within the Combination Period. However, if the Sponsor or any of its respective affiliates acquire Public Shares, such Public Shares will be entitled to liquidating distributions from the Trust Account if the Company fails to complete a Business Combination within the Combination Period. The underwriters have agreed to waive their rights to their deferred underwriting commission (see Note 7) held in the Trust Account in the event the Company does not complete a Business Combination within the Combination Period, and in such event, such amounts will be included with the other funds held in the Trust Account that will be available to fund the redemption of the Public Shares. In the event of such distribution, it is possible that the per share value of the assets remaining available for distribution will be less than the Initial Public Offering price per Unit ($10.00). In order to protect the amounts held in the Trust Account, the Sponsor has agreed that it will be liable to the Company if and to the extent any claims by a third party (other than the Company’s independent registered public accounting firm) for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account to below the lesser of (1) $10.20 per Public Share and (2) the actual amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.20 per Public Share, due to reductions in the value of trust assets, in each case net of the interest that may be withdrawn to pay taxes. This liability will not apply to any claims by a third party who executed a waiver of any and all rights to seek access to the Trust Account and as to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). 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. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers (other than the Company’s independent registered public accounting firm), prospective target businesses or other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account. Verde Bioresins Merger Agreement The Company and the Sponsor previously entered into an Agreement and Plan of Merger, as amended (the “Merger” Agreement) on June 21, 2023, as amended on August 11, 2023, with Virgo Merger Sub Corp., a Delaware corporation and wholly-owned subsidiary of the Company (“Merger Sub”), Verde Bioresins, Inc., a Delaware corporation (“Verde”). On March 12, 2024, the Company received a termination notice (the “Termination Notice”) from Verde stating that Verde was exercising its right to terminate the Merger Agreement (the “Termination”) and all ancillary agreements, pursuant to Section 10.01(c) of the Merger Agreement. On March 18, 2024, the Company responded to the Termination Notice and agreed to a termination of the Merger Agreement, but disputed the grounds for the termination of the Merger Agreement. As a result of the agreed upon termination of the Merger Agreement, the Acquiror Support Agreement entered among the Company, Verde and the Sponsor dated June 21, 2023, the Company Support Agreement between Humanitario Capital LLC, the Company and Verde dated June 21, 2023, and Sponsor Share Restriction Agreement entered among the Company, Verde and the Sponsor dated June 21, 2023, automatically terminated. The Company intends to continue evaluating other possible business combination targets. Changes in Control of Registrant On April 16, 2024, the Company, the Sponsor, TLGY Holdings LLC, which is the holding company of the Sponsor, CPC Sponsor Opportunities I, LP and CPC Sponsor Opportunities I (Parallel), LP (CPC Sponsor Opportunities I, LP and CPC Sponsor Opportunities I (Parallel), LP, together, the “CPC Funds”), the CPC Funds being current stakeholders of economic interests in the Sponsor, entered into a securities transfer agreement (“Securities Transfer Agreement”), pursuant to which, at a closing on June 19, 2024 (the “Closing”), CPC Funds, for an aggregate purchase price of $1.00 (the “Purchase Price”), (i) purchased 3,542,305 Class B ordinary shares of the Company (the “Founder Shares”) from the Sponsor, certain investors who held the Founder Shares, and three present or previous independent directors of the Company, and (ii) purchased 3,940,825 warrants, each exercisable to purchase one Class A ordinary share at $11.50 per share (“Private Placement Warrants”) from the Sponsor (the “Securities Transfer Transaction”). Following the completion of the Securities Transfer Transaction, CPC Funds held and controlled 4,126,215 Founder Shares and 3,940,825 Private Placement Warrants, which represents approximately 45.0% of the issued and outstanding ordinary shares of the Company, assuming the cancellation of 300,300 Class B ordinary shares held by Mizuho Securities USA LLC as required by the Securities Transfer Agreement, and as such the CPC Funds are able to control the election of the Company’s board of directors, and ultimately, the direction of the Company until its initial business combination, if any. On June 19, 2024, in connection with the Securities Transfer Transaction, the Company and the Sponsor entered into a letter agreement (the “Termination Letter”) terminating the administrative services agreement (the “Administrative Services Agreement”), dated November 30, 2021, by and between the Company and the Sponsor. Pursuant to the Termination Letter, the Company and the Sponsor agreed to irrevocably release, waive, and forever discharge the Company and its successors or assigns, the Sponsor and its members, directors, advisors, officers and its holding company, from any and all actions, compensations, fees and expenses, obligations and claims of all types and nature, including all sums that may be or have been accrued or outstanding, arising from or in connection with the Administrative Services Agreement. On June 20, 2024, in connection with the Securities Transfer Transaction, the Company and CPC Funds entered into a joinder to a certain letter agreement, dated November 30, 2021 (the “Letter Agreement Joinder”) and a joinder to a certain registration rights agreement, dated November 30, 2021 (the “Registration Rights Agreement”). In addition, on June 21, 2024, the Company entered into an agreement (the “CPC Funds Indemnification Agreement”) to indemnify CPC Funds and their affiliates (each, a “Indemnitee”) from any claims made by the Company or a third party in respect of any investment opportunities sourced by an Indemnitee, any liability arising with respect to an Indemnitee’s activities in connection with the Company’s affairs, and that are provided without a separate written agreement between the Company and any Indemnitee. Such indemnity will provide that the Indemnitees cannot access the funds held in the Company’s trust account. On June 20, 2024, in connection with the Closing of the Securities Transfer Transaction, Jin-Goon Kim resigned as the CEO and the interim CFO of the Company, and remained as the chairman of Board of the Company. Vikas Desai was appointed as the CEO and a director of the Company, and Merrick Friedman was appointed as the CFO of the Company. Enrique Klix was appointed as an independent director of the Company, and Young Cho was appointed as an independent director of the Company. Change in Auditor On June 27, 2024, the Company dismissed Marcum Asia CPAs LLP (“Marcum Asia”) as its independent registered public accounting firm to audit the Company’s financial statements, to be effective immediately. The dismissal of Marcum Asia was approved by the Audit Committee of the Company’s Board of Directors (the “Audit Committee”). On June 28, 2024, the Company engaged WithumSmith+Brown, PC (“Withum”) as its new independent registered public accounting firm. The engagement of Withum was approved by Audit Committee. Liquidity, Capital Resources, and Going Concern As of June 30, 2024, the Company had cash of approximately $41,096 and a working capital deficit of $3,654,956. In connection with the Company’s assessment of going concern considerations in accordance with Accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” management is satisfied that Sponsor has committed, but not obliged, to provide fund in form of working capital loan for the working capital needs of the Company until the consummation of an initial business combination or the winding up of the Company as stipulated in the Company’s amended and restated memorandum and articles of association, though no assurance can be provided that such additional capital will ultimately be available. Management has determined that if the Company is unsuccessful in consummating an initial business combination by September 16, 2024 (or up to April 16, 2025 if the period of time to consummate a business combination is extended in accordance with the terms of the Amended and Restated Memorandum and Articles of Association), the requirement that the Company cease all operations, redeem the public shares and thereafter liquidate and dissolve raise substantial doubt about the ability to continue as a going concern. There is no assurance that the Company’s plans to consummate a Business Combination will be successful within the Combination Period. Additionally, management has determined that the Combination Period is less than one year from the date of the issuance of the financial statements. This, coupled with the current liquidity condition of the Company, raises substantial doubt about the Company’s ability to continue as a going concern. As a result, this factor raises substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Risks and Uncertainties As a result of the military action commenced in February 2022 by the Russian Federation and Belarus in the country of Ukraine and related economic sanctions, the Company’s ability to consummate a Business Combination, or the operations of a target business with which the Company ultimately consummates a Business Combination, may be materially and adversely affected. In addition, the Company’s ability to consummate a transaction may be dependent on the ability to raise equity and debt financing which may be impacted by these events, including as a result of increased market volatility, or decreased market liquidity in third-party financing being unavailable on terms acceptable to the Company or at all. The impact of this action and related sanctions on the world economy and the specific impact on the Company’s financial position, results of operations and/or ability to consummate a Business Combination are not yet determinable. The financial statements do not include any adjustments that might result from the outcome of the above uncertainties. |
RESTATEMENT OF PREVIOUSLY ISSUE
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | 6 Months Ended |
Jun. 30, 2024 | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | NOTE 2. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS In connection with the preparation of the Company’s quarterly financial statements as of June 30, 2024, the Company identified an error in its misapplication of accounting guidance related to amounts reported in certain previously issued financial statements related to the recording of convertible promissory notes. The Company had incorrectly marked the Company’s convertible promissory notes to fair value from the inception of the notes. The Company improperly elected the fair value option under Accounting Standards Codification No. 825 – Financial Instruments (“ASC 825 the Company had recorded a gain on the issuance of the notes. However, the notes were with related parties and the gain should have been classified as an in substance capital contribution. This equity component precludes the use of the fair value option under ASC 825.. In reassessing the notes\, the Company determined that the notes should have been assessed for a bifurcated derivative under Accounting Standards Codification No. 815 – Derivatives and Hedging (“ASC 815”). The conversion features of the notes did result in de minimis bifurcated derivatives. . As a result, management determined that the notes payable account, and therefore total liabilities as well, was understated by $1,253,224 and the change in fair value of convertible notes account, and therefore net income as well, was overstated by $1,253,224 for the year ended December 31, 2023. Similarly, management determined that the Notes Payable Account was understated by $689,465 and the Change in fair value of convertible notes account was overstated by $689,465 for the quarter ended March 31, 2024. The Company has restated its Form 10-K with the above changes included and included the historical adjustment to the accounts impacted in the tables below. The following tables contain the restated financial information for the 2024 period previously reported. The restatements do not have an impact on the Company’s cash position and investments held in the Trust Account established in connection with the Initial Public Offering. The Company has amended its previously filed Annual Report on Form 10-K/A for the year ended December 31, 2023. The financial information that has been previously filed or otherwise reported for this period should no longer be relied upon and is superseded by the information below in this Quarterly Report on Form 10-Q. As Previously Reported Adjustment As Restated Balance Sheet as of March 31, 2024 (unaudited) Notes payable $ 802,311 $ 1,942,689 $ 2,745,000 Total Current Liabilities $ 1,765,241 $ 1,942,689 $ 3,707,930 Total Liabilities $ 11,072,991 $ 1,942,689 $ 13,015,680 Accumulated Deficit $ (11,003,833) $ (1,942,689) $ (12,946,522) Total Shareholders’ Deficit $ (11,003,258) $ (1,942,689) $ (12,945,947) As Previously Reported Adjustment As Restated Statement of Operations as of March 31, 2024 (unaudited) Change in fair value of convertible notes $ 689,465 $ (689,465) $ — Net income $ 980,498 $ (689,465) $ 291,033 Basic and diluted net income per share, Class A ordinary shares subject to possible redemption $ 0.08 $ (0.06) $ 0.02 Basic and diluted net income per Class B ordinary share $ 0.08 $ (0.06) $ 0.02 As Previously Reported Adjustment As Restated Statements of Cash Flows as of March 31, 2024 (unaudited) Net income $ 980,498 $ (689,465) $ 291,033 Loss (gain) on change in fair value of note payable $ (689,465) $ 689,465 $ — |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed financial statements are presented in U.S. dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, the accompanying unaudited condensed financial statements do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of Management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The accompanying unaudited condensed financial statements should be read in conjunction with the Company’s December 31, 2023 Annual Report on Form 10-K, as filed with the SEC on March 26, 2024. The interim results for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for any future periods. Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012, as amended (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 independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Use of Estimates The preparation of the financial statements in conformity with US GAAP requires the Company’s 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 balance sheet. 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 balance sheets, 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. As of June 30, 2024 and December 31, 2023, the Company had cash of $41,096 and $40,621, respectively held outside the Trust Account. The Company did not have any cash equivalents at June 30, 2024 and December 31, 2023. Cash and investments held in Trust Account At June 30, 2024 and December 31, 2023, the Company had $42.9 million and $66.0 million in investments held in the Trust Account, respectively. The Company’s portfolio of investments held in the Trust Account are invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 185 days or less or in any open-ended investment company that holds itself out as a money market fund selected by the Company meeting the conditions of Rule 2a-7 of the Investment Company Act. Offering Costs associated with the Initial Public Offering The Company complies with the requirements of the Financial Accounting Standards Board (“FASB”) ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A, “ ” Class A ordinary shares subject to possible redemption The Company accounts for its Class A ordinary shares subject to possible redemption in accordance with the guidance enumerated in ASC 480 “ Distinguishing Liabilities from Equity The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable Class A ordinary shares to equal the redemption value at the end of each reporting period. During the six months ended June 30, 2024 and 2023, the Company recorded a measurement adjustment of $2,039,326 and $4,142,604, respectively, to increase to redemption value. Net income (loss) per Ordinary Share The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” Net income (loss) per ordinary share is computed by dividing net income (loss) by the weighted average number of ordinary shares outstanding for the period. The Company applies the two-class method in calculating earnings per share. The remeasurement adjustment associated with the redeemable Class A Ordinary Shares is excluded from earnings per share as the redemption value approximates fair value. The calculation of diluted income (loss) per ordinary share does not consider the effect of the warrants issued in connection with the (i) Initial Public Offering and (ii) the Private Placement. As of June 30, 2024, the Company did not have any dilutive securities or other contracts that could, potentially, be exercised or converted into ordinary shares and subsequently share in the earnings of the Company. The following table reflects the calculation of basic and diluted net income (loss) per ordinary share. For the Three Months For the Three Months Ended June 30, Ended June 30, 2024 2023 (Restated) Class A Redeemable ordinary shares Numerator: Allocation of net income (loss), as adjusted $ 4,710 $ (530,621) Denominator: Basic and diluted weighted average shares outstanding 4,105,015 7,318,182 Basic and diluted net income (loss) per Class A Ordinary Shares $ 0.00 $ (0.07) Class B Non-redeemable ordinary shares (1) Numerator: Allocation of net income (loss), as adjusted $ 6,597 $ (416,917) Denominator: Basic and diluted weighted average shares outstanding 5,750,000 5,750,000 Basic and diluted net income (loss) per Class B Ordinary Shares $ 0.00 $ (0.07) For the Six Months For the Six Months Ended June 30, Ended June 30, 2024 2023 Class A Redeemable ordinary shares Numerator: Allocation of net income (loss), as adjusted $ 140,833 $ (509,122) Denominator: Basic and diluted weighted average shares outstanding 5,013,940 12,083,375 Basic and diluted net income (loss) per Class A Ordinary Shares $ 0.03 $ (0.04) Class B Non-redeemable ordinary shares Numerator: Allocation of net income (loss), as adjusted $ 161,507 $ (242,271) Denominator: Basic and diluted weighted average shares outstanding 5,750,000 5,750,000 Basic and diluted net income (loss) per Class B Ordinary Shares $ 0.03 $ (0.04) (1) In May 2024, the Company entered into a certain waiver with Mizuho Securities USA LLC (“Mizuho”), one of the underwriters of the Company’s Initial Public Offering, pursuant to which Mizuho agreed to a forfeiture of all 300,300 Class B ordinary shares acquired by it at the time of, and deemed compensation for, the IPO. As of the date of this Quarterly Report, the forfeiture of the 300,300 Class B ordinary shares has not yet been completed. Income Taxes The Company follows the asset and liability method of accounting for income taxes under ASC 740, “ Income Taxes ASC 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 June 30, 2024 and December 31, 2023. 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 subject to income tax examinations by major taxing authorities since inception. There is currently no taxation imposed on income by the Government of the Cayman Islands. In accordance with Cayman income tax regulations, income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s financial statements. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Depository Insurance Coverage of $250,000. Any loss incurred or lack of access to such funds could have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows. Fair Value of Financial Instruments Fair value is defined as the price that would be received for sale of an asset or paid to transfer of a liability, in an orderly transaction between market participants at the measurement date. US GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include: ● Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. See Note 10 for additional information regarding liabilities measured at fair value. Convertible Promissory Note The Company accounts for its convertible promissory notes under ASC 470-20, Debt --Debt with Conversion and other Options (“ASC 470”). The notes are assessed under ASC 815 for any conversion features which may require bifurcation. 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 ASC Topic 815, “Derivatives and Hedging . ” The Company’s derivative instruments are recorded at fair value as of the closing date of the Initial Public Offering (December 3, 2021) and re-valued at each reporting date, with changes in the fair value reported in the statements of operations. Derivative assets and liabilities are classified on 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 Company has determined the Public Warrants and the Private Placement Warrants are a derivative instrument. As the Public Warrants and the Private Placement Warrants meet the definition of a derivative, the Public Warrants and the Private Placement Warrants are measured at fair value at issuance and at each reporting date in accordance with ASC 820, “ Fair Value Measurement,” with changes in fair value recognized in the statements of operations in the period of change. Convertible Promissory Note The Company accounts for its convertible promissory note under ASC 815, Derivatives and Hedging (“ASC 815”). Under 815-15-25, the election can be at the inception of a financial instrument to account for the instrument under the fair value option under ASC 825. The Company has made such election for its convertible promissory note. Using fair value option, the convertible promissory note is required to be recorded at its initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the note are recognized as non-cash change in the fair value of the convertible promissory note in the statements of operations. The fair value of the option to convert into private warrants was valued utilizing the Monte Carlo model. Warrant Liabilities The Company accounts for the Public Warrants and the Private Placement Warrants issued in connection with the Initial Public Offering and the Private Placement in accordance with the guidance contained in FASB ASC 815, “Derivatives and Hedging” Recent Accounting Standards In June 2016, the Financial Accounting Standards Bureau (“FASB”) issued Accounting Standards Update 2016-13 – Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This update requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Since June 2016, FASB issued clarifying updates to the new standard including changing the effective date for smaller reporting companies. The guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, with early adoption permitted. We adopted ASU 2016-13 on January 1, 2023. The adoption of ASU 2016-13 did not have a material impact on its financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on our financial statements. |
INITIAL PUBLIC OFFERING
INITIAL PUBLIC OFFERING | 6 Months Ended |
Jun. 30, 2024 | |
INITIAL PUBLIC OFFERING | |
INITIAL PUBLIC OFFERING | NOTE 4 — INITIAL PUBLIC OFFERING Pursuant to the Initial Public Offering and the underwriters’ exercise of the over-allotment option, the Company sold 23,000,000 Units at a purchase price of $10.00 per Unit generating gross proceeds to the Company in the total amount of $230,000,000, which includes the full exercise of the underwriter over-allotment option generating gross proceeds of $30,000,000 to the Company. Each Unit consists of one share of the Company’s Class A ordinary shares, par value $0.0001 per share (the “Class A common shares”), and one |
PRIVATE PLACEMENTS
PRIVATE PLACEMENTS | 6 Months Ended |
Jun. 30, 2024 | |
PRIVATE PLACEMENTS | |
PRIVATE PLACEMENTS | NOTE 5 — PRIVATE PLACEMENTS Simultaneously with the closing of the Initial Public Offering and the exercise of the over-allotment option, the Company consummated the private sale (the “Private Placement”) of an aggregate of 11,259,500 warrants (the “Private Placement Warrants”) at a purchase price of $1.00 per Private Placement Warrant, generating gross proceeds to the Company in the amount of $11,259,500. A portion of the proceeds from the Private Placement Warrants was added to the proceeds from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period, the proceeds from the sale of the Private 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) and the Private Placement Warrants will be worthless. The 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 an Initial Business Combination, subject to certain exceptions. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2024 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 6 — RELATED PARTY TRANSACTIONS Founder Shares On June 17, 2021, the Sponsor received 5,750,000 of the Company’s Class B ordinary shares (the “Founder Shares”) in exchange for cash paid on behalf of the Company of $25,000. On August 7, 2021, the Sponsor surrendered and forfeited 718,750 Founder Shares for no consideration, following which the Sponsor holds 5,031,250 Founder Shares. On November 30, 2021, the Company effected a further issuance of founder shares, resulting in the Sponsor holding an aggregate of 5,750,000 founder shares. All share amounts have been retroactively restated to reflect this surrender. The Founder Shares include an aggregate of up to 750,000 shares subject to forfeiture to the extent that the underwriters’ over-allotment is not exercised in full or in part, so that the number of Founder Shares will equal, on an as-converted basis, approximately 20% of the Company’s issued and outstanding ordinary shares after the Initial Public Offering. Upon the exercise of the over-allotment option, these shares are no longer subject to forfeiture. The Sponsor has agreed, subject to limited exceptions, not to transfer, assign or sell any of the Founder Shares until the earlier to occur of: (A) one year after the completion of a Business Combination and (B) subsequent to a Business Combination, (x) if the last reported sale price of the Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after a Business Combination, or (y) the date on which the Company completes a liquidation, merger, capital stock exchange or other similar transaction that results in all of the Public Shareholders having the right to exchange their shares of ordinary shares for cash, securities or other property. Concurrent with the closing of the Initial Public Offering, the Sponsor transferred 30,000 Class B ordinary shares to each of the three independent directors, at an aggregate purchase price of $150, or approximately $0.005 per share. During the period ended December 31, 2021, the Company recorded share-based compensation of $569,868 to the statements of operations for services rendered. As described in Note 1, pursuant to the Securities Transfer Agreement and at a closing on June 19, 2024, CPC Funds (i) purchased 3,542,305 Founder Shares from the Sponsor, certain investors who held the Founder Shares, and three present or previous independent directors of the Company, and (ii) purchased 3,940,825 Private Placement Warrants from the Sponsor. Following the completion of the Securities Transfer Transaction, CPC Funds held and controlled 4,126,215 Founder Shares and 3,940,825 Private Placement Warrants. General and Administrative Services Commencing on November 30, 2021, the Company has agreed to pay the Sponsor a total of $15,000 per month for office space, utilities and secretarial and administrative support. Upon completion of the Initial Business Combination or the Company’s liquidation, the Company will cease paying these monthly fees. On June 19, 2024, the Company and its Sponsor entered into a letter agreement (the “Termination Letter”) terminating the Administrative Services Agreement, dated November 30, 2021, by and between the Company and the Sponsor. Pursuant to the Termination Letter, the Company and the Sponsor agreed to irrevocably release, waive, and forever discharge the Company and its successors or assigns, the Sponsor and its members, directors, advisors, officers and its holding company, from any and all actions, compensations, fees and expenses, obligations and claims of all types and nature, including all sums that may be or have been accrued or outstanding, arising from or in connection with the Administrative Services Agreement. During the six months ended June 30, 2024 and 2023, the Company incurred $60,000 and $90,000, respectively, pursuant to the administrative services agreement. As of June 30, 2024 and December 31, 2023, there was $15,000 due to related party in connection with the administrative service agreement. Convertible Promissory Note i) Working Capital Loans In order to finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor or certain of its officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). Such Working Capital Loans would be evidenced by promissory notes. The notes may be repaid upon completion of a Business Combination, without interest, or, at the lender’s discretion, up to $1,500,000 of the notes may be converted upon completion of a Business Combination into warrants at a price of $1.00 per warrant. Such warrants would be identical to the Private Placement Warrants. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. On each of April 24, 2023 (the “2023 April Promissory Note”) and August 10, 2023 (the “2023 August Promissory Note”), the Company issued an unsecured working capital promissory note to the Sponsor, pursuant to which the Company may borrow up to an aggregate principal amount of $250,000 and $500,000, respectively. Both of these two promissory notes were non-interest bearing and payable on the earlier of (i) fifteen On May 1, 2024, the Company issued an unsecured working capital promissory note to the Sponsor, pursuant to which the Company may borrow up to an aggregate principal amount of $500,000 (the “2024 May Working Capital Promissory Note”). This 2024 May Working Capital Promissory Notes is non-interest bearing and payable on the earlier of (i) fifteen As of June 30, 2024 and December 31, 2023, there was $1,956,525 and $725,000 respectively, outstanding of the working capital loans. As of June 30, 2024, CPC Sponsor Opportunities provided the Company an aggregated $461,525 of funding loans. ii) Time Extension Funding Loans In order to extend the Company’s time period for consummating a Business Combination, the Sponsor or an affiliate of the Sponsor or certain of its officers and directors may, but are not obligated to, loan the Company funds as may be required. If the Company completes its Business Combination, the Company will repay such loaned amounts. In the event that the Business Combination does not close, no proceeds from the Trust Account would be used to repay such time extension funding loaned amounts. If the Company does not complete a Business Combination, the Company will not repay such time extension funding loans. Up to $3,000,000 of loans made to extend the time period for consummating an initial business combination may be convertible into private placement warrants of the post-business combination entity at a price of $1.00 per warrant at the option of the lender (the “Extension Loans”). Such warrants are identical to the Private Placement Warrants. Prior to the completion of a Business Combination, the Company does not expect to seek loans from parties other than the Sponsor or an affiliate of the Sponsor as the Company does not believe third parties will be willing to loan such funds and provide a waiver against any and all rights to seek access to funds in the Trust Account. As of June 30, 2024, $475,000 was deposited as Company Extension Loan into the Trust Account by Verde (as defined above) pursuant to the Merger Agreement (as defined above), whereunder Verde agreed to finance the extension of the Company’s Termination Date not exceeding $100,000 per month. The Company Extension Loans are evidence by promissory notes. Verde may elect to convert all (but not less than all) of the principal balance of the promissory notes, upon consummation of an initial business combination by the Company with Verde and prior to the Company’s first payment of all or any portion of the principal balance of the promissory note in cash, at Verde’s option. As a result of the Termination Agreement entered into on March 18, 2024, the conversion options on Verde’s extension loans were terminated. Therefore, the entirety of the amount loaned by Verde was reclassed as a third-party promissory note and is appropriately classified as such on the accompanying condensed balance sheet. On May 4, 2024, Verde entered into a mutual release agreement with the Company, Merger Sub and the Sponsor, pursuant to which, a mutual release, waiver and discharge was agreed in respect of all claims and obligations arising out of or relating to the Termination, the Merger Agreement and all ancillary agreements and that all payments made by Verde for extending the period of time to consummate a business combination by the Company shall not be repayable by the Company to Verde and all promissory notes issued by the Company to Verde shall be deemed to have been voided and cancelled. Solely in the event of a consummation by the Company of its initial business combination, the Company shall pay Verde a sum of $83,125, as full and final payment. On April 18, 2024, in order to deposit the monthly extension payment to extend the period of time that the Company has to complete its initial business combination by an additional month for the period from April 17, 2024 to May 16, 2024, the Company issued unsecured promissory notes to each of the Sponsor, CPC Sponsor Opportunities I, LP and CPC Sponsor Opportunities I (Parallel), LP (the “2024 April Extension Promissory Notes”), pursuant to which the Company was provided $20,000, $21,800 and $18,200, respectively. These 2024 April Extension Promissory Notes were non-interest bearing and payable on the earlier of (i) fifteen On May 18, 2024, in order to deposit the monthly extension payment to extend the period of time that the Company has to complete its initial business combination by an additional month for the period from May 17, 2024 to June 16, 2024, the Company issued unsecured promissory notes to each of CPC Sponsor Opportunities I, LP and CPC Sponsor Opportunities I (Parallel), LP (the “2024 May Extension Promissory Notes”), pursuant to which the Company was provided $32,700 and $27,300, respectively. These 2024 May Extension Promissory Notes were non-interest bearing and payable on the earlier of (i) fifteen On June 16, 2024, in order to deposit the monthly extension payment to extend the period of time that the Company has to complete its initial business combination by an additional month for the period from June 17, 2024 to July 16, 2024, the Company issued unsecured promissory notes to each of CPC Sponsor Opportunities I, LP and CPC Sponsor Opportunities I (Parallel), LP (the “2024 June Extension Promissory Notes”), pursuant to which the Company were provided $32,700 and $27,300, respectively. These 2024 June Extension Promissory Notes was non-interest bearing and payable on the earlier of (i) fifteen As of June 30, 2024 and December 31, 2023, the Company had $1,554,000 and $1,510,000 outstanding balance under the extension loans. As of June 30, 2024, CPC Sponsor Opportunities provided the Company an aggregated $179,000 of funding loans. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 7 — Registration Rights The holders of the Founder Shares, Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans or Extension Loans (and any shares of ordinary shares issuable upon the exercise of the Private Placement Warrants or warrants issued upon conversion of the Working Capital Loans or Extension Loans and upon conversion of the Founder Shares) are entitled to registration rights pursuant to a registration rights agreement requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to shares of Class A ordinary shares). The holders of these securities are entitled to make up to three demands, excluding short form registration demands, that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion of a Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. However, the registration rights agreement provides that the Company will not be required to effect or permit any registration or cause any registration statement to become effective until the securities covered thereby are released from their lock-up restrictions. The Company will bear the expenses incurred in connection with the filing of any such registration statements. Underwriting Agreement The Company granted the underwriters a 45-day option from the date of the Initial Public Offering to purchase up to 3,000,000 additional Units to cover over-allotments, if any, at the Initial Public Offering price less the underwriting discounts and commissions. On December 3, 2021, concurrent with the closing of the Initial Public Offering, the underwriters were paid a cash underwriting discount of $0.20 per Unit, or $4,000,000 in the aggregate (regardless of whether the underwriters’ over-allotment option to purchase additional units is exercised in full), which was paid upon the closing of the Initial Public Offering. In addition, the underwriters will be entitled to a deferred fee of $0.35 per Unit, or $7,000,000 in the aggregate. The deferred fee will become payable to the underwriters from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement. On December 8, 2021, the Company consummated the closing of the sale of an additional 3,000,000 Option Units at $10.00 per Option Unit, pursuant to the underwriters’ exercise in full of their over-allotment option, generating gross proceeds of $30,000,000. The Company recorded an additional deferred fee of $1,650,000 to be paid upon completion of a Business Combination. Concurrent with the closing of the Initial Public Offering, the Sponsor transferred 15,000 Class B ordinary shares to Centaury Management Ltd., an investor in the Sponsor, at an aggregate purchase price of $75, or approximately $0.005 per share. The Sponsor also transferred 300,300 Class B ordinary shares to Mizuho Securities USA LLC, the representative of the underwriters, at an aggregate purchase price of $1,000,000, or approximately $3.33 per share (the “Representative’s Shares”). The Company thus recorded additional transaction costs of $999,517, the grant date fair value of the shares net of consideration received. The Representative’s Shares have been deemed compensation by FINRA and are therefore subject to a lock-up for a period of 180 days immediately following the date of the effectiveness of the registration statement of which this prospectus forms a part pursuant to Rule 5110(e)(1) of the FINRA Manual. In May 2024, the Company entered into a certain waiver with Mizuho Securities USA LLC (“Mizuho Waiver”), pursuant to which Mizuho agreed to waive the Deferred Underwriting Fees and agreed to a forfeiture of all 300,300 Class B ordinary shares acquired by it at the time of, and deemed compensation for, the IPO. The Company believes that Mizuho was acting as a representative of all of the underwriters on the IPO, however, as a precautionary effort, the Company is in the process of obtaining a written confirmation from all other underwriters on the IPO, to confirm that the Deferred Underwriting Fees were waived under the Mizuho Waiver. The Company intends to receive this waiver during the third quarter of 2024. As of the date of this Quarterly Report, the forfeiture of the 300,300 Class B ordinary shares has not yet been completed. Legal Fees The Company has an agreement in place whereby if its prior legal counsel for the Company’s IPO assists in the initial business combination, payment of their charges plus a success premium to be agreed is contingent on a successful de-SPAC closing or recovery under certain cost coverage provisions in the merger agreement. In accordance with ASC 805, Business Combinations, this fee will not be recorded until Business Combination is consummated. On May 2, 2024, the Company entered into a waiver with its prior legal counsel for the Company’s IPO, pursuant to which its prior legal counsel agreed to a waiver for IPO of all fees and payment under and pursuant to their engagement. Solely in the event of a consummation by the Company of its initial business combination, the Company shall pay the legal counsel for the Company’s IPO a sum of $130,000, as full and final payment. |
SHAREHOLDERS' DEFICIT
SHAREHOLDERS' DEFICIT | 6 Months Ended |
Jun. 30, 2024 | |
SHAREHOLDERS' DEFICIT | |
SHAREHOLDERS' DEFICIT | NOTE 8 — SHAREHOLDERS’ DEFICIT Preference Shares Class A Ordinary Shares issued outstanding Class B Ordinary Shares — Only holders of the Class B ordinary shares will have the right to vote on the election of directors prior to the Business Combination. Holders of ordinary shares, holders of Class A ordinary shares and holders of Class B ordinary shares will vote together as a single class on all matters submitted to a vote of the shareholders except as otherwise required by law. In connection with a Business Combination, the Company may enter into a shareholder’s agreement or other arrangements with the shareholders of the target or other investors to provide for voting or other corporate governance arrangements that differ from those in effect upon completion of the Initial Public Offering. The shares of Class B ordinary shares will automatically convert into Class A ordinary shares at the time of a Business Combination, or earlier at the option of the holder, on a one-for-one basis, subject to adjustment. In the case that additional shares of Class A ordinary shares, or equity-linked securities, are issued or deemed issued in excess of the amounts issued in the Initial Public Offering and related to the closing of a Business Combination, the ratio at which shares of Class B ordinary shares shall convert into shares of Class A ordinary shares will be adjusted (unless the holders of a majority of the then-outstanding shares of Class B ordinary shares agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A ordinary shares issuable upon conversion of all shares of Class B ordinary shares will equal, in the aggregate, on an as-converted basis, 20% of the sum of the total number of all shares of ordinary shares outstanding upon the completion of Initial Public Offering plus all shares of Class A ordinary shares and equity-linked securities issued or deemed issued in connection with a Business Combination (net of the number of shares of Class A ordinary shares redeemed in connection with a Business Combination), excluding any shares or equity-linked securities issued or issuable to any seller of an interest in the target to the Company in a Business Combination. |
WARRANTS LIABILITIES
WARRANTS LIABILITIES | 6 Months Ended |
Jun. 30, 2024 | |
WARRANTS LIABILITIES | |
WARRANTS LIABILITIES | NOTE 9 Public Warrants may only be exercised for a whole number of shares. No fractional warrants will be issued upon separation of the Units and only whole warrants will trade. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination and (b) 12 months from the closing of the Initial Public Offering. The Public Warrants will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation. The Company will not be obligated to deliver any shares of Class A ordinary share pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act covering the issuance of the shares of Class A ordinary shares issuable upon exercise of the warrants is then effective and a current prospectus relating to those shares of Class A ordinary shares is available, subject to the Company satisfying its obligations with respect to registration, or a valid exemption from registration is available. No warrant will be exercisable for cash or on a cashless basis, and the Company will not be obligated to issue any shares to holders seeking to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of residence of the exercising holder, or an exemption from registration is available. The Company has agreed that as soon as practicable, but in no event later than 20 business days after the closing of a Business Combination, the Company will use its commercially reasonable efforts to file, and within 60 business days following a Business Combination to have declared effective, a registration statement covering the issuance of the shares of Class A ordinary shares issuable upon exercise of the warrants and to maintain a current prospectus relating to those shares of Class A ordinary shares until the warrants expire or are redeemed. Notwithstanding the above, if the Class A ordinary share is at the time of any exercise of a warrant not listed on a national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elects, the Company will not be required to file or maintain in effect a registration statement, but will use its commercially reasonable efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. Redemption of Warrants When the Price per Share of Class A Ordinary Share Equals or Exceeds $18.00 ● in whole and not in part; ● at a price of $0.01 per Public Warrant; ● upon a minimum of 30 days ’ prior written notice of redemption, or the 30-day redemption period to each warrant holder; and ● if, and only if, the last reported sale price of the Class A ordinary shares equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganization, recapitalizations and the like) for any 10 trading days within a 20 -trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to warrant holders. If and when the warrants become redeemable by the Company, the Company 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. Redemption of Warrants When the Price per Share of Class A Ordinary Share Equals or Exceeds $10.00 ● in whole and not in part; ● at a price of $0.10 per warrant provided that the holder will be able to exercise their warrants on cashless basis prior to redemption and receive that number of shares based on the redemption date and the fair market value of the Class A ordinary shares; ● upon a minimum of 30 days ’ prior written notice of redemption; ● if, and only if, the last reported sale price of the Class A ordinary share equals or exceeds $10.00 per share (as adjusted for stock splits, stock dividends, reorganization, recapitalizations and the like) for any 10 trading days within a 20 - trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders The Private Placement Warrants are identical to the Public Warrants underlying the Units, except that the Private Placement Warrants and the Class A ordinary shares issuable upon the exercise of the Private Placement Warrants will not be transferable, assignable or saleable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable on a cashless basis and be non-redeemable, except as described above, so long as they are held by the initial purchasers of the Private Placement Warrants or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers of the Private Placement Warrants or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. The Company accounts for the 22,759,500 warrants issued in connection with the Initial Public Offering (including 11,500,000 Public Warrants and 11,259,500 Private Placement Warrants) in accordance with the guidance contained in ASC 815-40. Such guidance provides that because the warrants do not meet the criteria for equity treatment thereunder, each warrant must be recorded as a liability. The accounting treatment of derivative financial instruments requires that the Company record a derivative liability upon the closing of the Initial Public Offering. Accordingly, the Company classified each warrant as a liability at its fair value and the warrants were allocated a portion of the proceeds from the issuance of the Units equal to its fair value determined by the Monte Carlo simulation. This liability is subject to re-measurement at each balance sheet date. With each such re-measurement, the warrant liability will be adjusted to fair value, with the change in fair value recognized in the Company’s statements of operations. The Company will reassess the classification at each balance sheet date. If the classification changes as a result of events during the period, the warrants will be reclassified as of the date of the event that causes the reclassification. As of June 30, 2024 and December 31, 2023, the derivative warrant liability was $1,474,816 and $352,772, respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2024 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 10 — FAIR VALUE MEASUREMENTS The following table presents information about the Company’s assets and liabilities that are measured at fair value at June 30, 2024 and December 31, 2023, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value: June 30, December 31, Description Level 2024 Level 2023 Assets: Cash and investments held in Trust Account 1 $ 42,901,415 1 $ 65,954,638 Liabilities: Warrant liability – Private Placement Warrants 3 729,616 3 188,472 Warrant liability – Public Warrants 1 745,200 1 164,300 The Public Warrants and the Private Placement Warrants were accounted for as liabilities in accordance with ASC 815-40 and are presented within liabilities on the balance sheet. The warrant liabilities are measured at fair value at inception and on a recurring basis, with changes in fair value presented within change in fair value of warrant liabilities in the statements of operations. Upon issuance, the Company used a Monte Carlo simulation model to value the Public Warrants and a modified Black-Scholes model to value the Private Placement Warrants. The Company allocated the proceeds received from (i) the sale of Units (which is inclusive of one Class A ordinary share and one The subsequent measurements as of June 30, 2024 of the Public Warrants after the detachment of the Public Warrants from the Units are classified as Level 1 due to the use of an observable market quote in an active market. For periods subsequent to the detachment of the Public Warrants from the Units, the publicly traded closing price of the Public Warrants of $11.50 per warrant, was used as the fair value as of the relevant date. The terms of the Private Placement Warrants are analogous to the Public Warrants with the exception that they are not redeemable. As such, these warrants were valued using a modified Black-Scholes model. The table below provides a summary of the changes in fair value, including net transfers in and/or out, of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the six months ended June 30, 2024: Fair Value Measurement Using Level 3 Inputs Total Balance, December 31, 2023 $ 188,472 Change in fair value of derivative warrant liabilities 541,144 Balance, June 30, 2024 $ 729,616 The key inputs into the Monte Carlo simulation model and the modified Black-Scholes model to value the derivative warrant liabilities were as follows: June 30, 2024 December 31, 2023 Share price $ 11.45 $ 11.08 Exercise price $ 11.50 $ 11.50 Risk-free interest rate 4.85 % 4.83 % Expected life of warrants 1.62 years 5.48 years Expected volatility of underlying shares de minimis % de minimis % Dividend yield 0.00 % 0.00 % Probability of business combination 75.00 % 50.00 % As of June 30, 2024 and December 31, 2023, the derivative warrant liability was $1,474,816 and $352,772, respectively. In addition, for the three months ended June 30, 2024, the Company recorded a loss on the change in fair value of the derivative warrant liabilities on the statements of operations of $817,066 and $1,548,941, respectively. For the six months ended June 30, 2024 and 2023, the Company recorded a loss on the change in fair value of the derivative warrant liabilities on the statements of operations of $1,122,044 and $3,071,532, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2024 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 11 — SUBSEQUENT EVENTS The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to August 16, 2024, the date that the financial statements were available to be issued. Based upon this review, except as noted below and as disclosed as current reports under various Form 8-K filed with the SEC, the Company did not identify any other subsequent events that would have required adjustment to or disclosure in the financial statements. Promissory Notes On July 5, 2024, the Company issued unsecured working capital promissory notes to each of CPC Sponsor Opportunities I, LP and CPC Sponsor Opportunities I (Parallel), LP (each a “Lender”), pursuant to which the Company may borrow up to an aggregate principal amount of $545,000 and $455,000, respectively (the “2024 July Working Capital Promissory Notes,” and each a “2024 July Working Capital Promissory Note”). Both 2024 July Working Capital Promissory Notes are non-interest bearing and payable on the earlier of (i) fifteen At the Lender’s option, upon consummation of an initial business combination and prior to the Company’s first payment of all or any portion of the unpaid principal balance of the Note in cash, the Lender may elect to convert all (but not less than all) of the unpaid principal balance of the Note into that number of warrants to purchase Class A ordinary shares of the Company (the “Working Capital Warrants”), equal to: (x) the unpaid principal amount of the Note being converted, divided by (y) $1.00, rounded up to the nearest whole number of warrants. The Working Capital Warrants shall be identical to the warrants issued by the Company in the private placement that occurred upon consummation of the IPO. The Working Capital Warrants and their underlying securities are entitled to customary registration rights. Upon the occurrence of an Event of Default (defined below), the Lender may, by written notice to the Company, declare the Note to be due immediately and payable with respect to the unpaid principal amount of the Note, and all other amounts payable thereunder. An “Event of Default” means (i) failure by the Company to pay the principal amount due pursuant to the Note within five (5) business days of the Maturity Date, (ii) voluntary bankruptcy, or (iii) involuntary bankruptcy. Upon the occurrence of an Event of Default specified in clauses (ii) and (iii) above, the balance of the Note and all other sums payable with regard to the Note, shall automatically and immediately become due and payable, in all cases without any action on the part of the Lender. On July 15, 2024, in order to deposit the monthly extension payment to extend the period of time that the Company has to complete its initial business combination by an additional month for the period from July 17, 2024 to August 16, 2024 the Company issued unsecured promissory notes to each of CPC Sponsor Opportunities I, LP and CPC Sponsor Opportunities I (Parallel), LP (the “2024 July Extension Promissory Notes”), pursuant to which the Company was provided $32,700 and $27,300, respectively. These 2024 July Extension Promissory Notes was non-interest bearing and payable on the earlier of (i) fifteen On July 16, 2024, CPC Sponsor Opportunities I, LP and CPC Sponsor Opportunities I (Parallel), LP provided the Company $60,000, which is covered by the 2024 July Promissory Notes (defined below). Extensions to Complete the Initial Business Combination On July 15, 2024, the Company notified Continental Stock Transfer & Trust Company of its intention to extend the period of time that the Company has to complete its initial business combination (the “Termination Date”) by an additional month for the period from July 17, 2024 to August 16, 2024, subject to our sponsor or its affiliates or designees depositing $60,000 (the “Extension Deposit”) into the trust account. On July 16, 2024, the Sponsor or its affiliates or designees deposited the Extension Payment into the trust account and as a result the Termination Date was extended by one month until August 16, 2024. On August 12, 2024, the Company notified Continental Stock Transfer & Trust Company of its intention to extend the period of time that the Company has to complete its initial business combination (the “Termination Date”) by an additional month for the period from August 17, 2024 to September 16, 2024, subject to our sponsor or its affiliates or designees depositing $60,000 (the “Extension Deposit”) into the trust account. On August 12, 2024, the Sponsor or its affiliates or designees deposited the Extension Payment into the trust account and as a result the Termination Date was extended by one month until September 16, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ 11,307 | $ 291,033 | $ (947,538) | $ 196,145 | $ 302,340 | $ (751,393) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed financial statements are presented in U.S. dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, the accompanying unaudited condensed financial statements do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of Management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The accompanying unaudited condensed financial statements should be read in conjunction with the Company’s December 31, 2023 Annual Report on Form 10-K, as filed with the SEC on March 26, 2024. The interim results for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for any future periods. |
Emerging Growth Company | Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012, as amended (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 independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with US GAAP requires the Company’s 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 balance sheet. 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 balance sheets, 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 | 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. As of June 30, 2024 and December 31, 2023, the Company had cash of $41,096 and $40,621, respectively held outside the Trust Account. The Company did not have any cash equivalents at June 30, 2024 and December 31, 2023. |
Cash and investments held in Trust Account | Cash and investments held in Trust Account At June 30, 2024 and December 31, 2023, the Company had $42.9 million and $66.0 million in investments held in the Trust Account, respectively. The Company’s portfolio of investments held in the Trust Account are invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 185 days or less or in any open-ended investment company that holds itself out as a money market fund selected by the Company meeting the conditions of Rule 2a-7 of the Investment Company Act. |
Offering Costs associated with the Initial Public Offering | Offering Costs associated with the Initial Public Offering The Company complies with the requirements of the Financial Accounting Standards Board (“FASB”) ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A, “ ” |
Class A ordinary shares subject to possible redemption | Class A ordinary shares subject to possible redemption The Company accounts for its Class A ordinary shares subject to possible redemption in accordance with the guidance enumerated in ASC 480 “ Distinguishing Liabilities from Equity The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable Class A ordinary shares to equal the redemption value at the end of each reporting period. During the six months ended June 30, 2024 and 2023, the Company recorded a measurement adjustment of $2,039,326 and $4,142,604, respectively, to increase to redemption value. |
Net income (loss) per Ordinary Share | Net income (loss) per Ordinary Share The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” Net income (loss) per ordinary share is computed by dividing net income (loss) by the weighted average number of ordinary shares outstanding for the period. The Company applies the two-class method in calculating earnings per share. The remeasurement adjustment associated with the redeemable Class A Ordinary Shares is excluded from earnings per share as the redemption value approximates fair value. The calculation of diluted income (loss) per ordinary share does not consider the effect of the warrants issued in connection with the (i) Initial Public Offering and (ii) the Private Placement. As of June 30, 2024, the Company did not have any dilutive securities or other contracts that could, potentially, be exercised or converted into ordinary shares and subsequently share in the earnings of the Company. The following table reflects the calculation of basic and diluted net income (loss) per ordinary share. For the Three Months For the Three Months Ended June 30, Ended June 30, 2024 2023 (Restated) Class A Redeemable ordinary shares Numerator: Allocation of net income (loss), as adjusted $ 4,710 $ (530,621) Denominator: Basic and diluted weighted average shares outstanding 4,105,015 7,318,182 Basic and diluted net income (loss) per Class A Ordinary Shares $ 0.00 $ (0.07) Class B Non-redeemable ordinary shares (1) Numerator: Allocation of net income (loss), as adjusted $ 6,597 $ (416,917) Denominator: Basic and diluted weighted average shares outstanding 5,750,000 5,750,000 Basic and diluted net income (loss) per Class B Ordinary Shares $ 0.00 $ (0.07) For the Six Months For the Six Months Ended June 30, Ended June 30, 2024 2023 Class A Redeemable ordinary shares Numerator: Allocation of net income (loss), as adjusted $ 140,833 $ (509,122) Denominator: Basic and diluted weighted average shares outstanding 5,013,940 12,083,375 Basic and diluted net income (loss) per Class A Ordinary Shares $ 0.03 $ (0.04) Class B Non-redeemable ordinary shares Numerator: Allocation of net income (loss), as adjusted $ 161,507 $ (242,271) Denominator: Basic and diluted weighted average shares outstanding 5,750,000 5,750,000 Basic and diluted net income (loss) per Class B Ordinary Shares $ 0.03 $ (0.04) (1) In May 2024, the Company entered into a certain waiver with Mizuho Securities USA LLC (“Mizuho”), one of the underwriters of the Company’s Initial Public Offering, pursuant to which Mizuho agreed to a forfeiture of all 300,300 Class B ordinary shares acquired by it at the time of, and deemed compensation for, the IPO. As of the date of this Quarterly Report, the forfeiture of the 300,300 Class B ordinary shares has not yet been completed. |
Income Taxes | Income Taxes The Company follows the asset and liability method of accounting for income taxes under ASC 740, “ Income Taxes ASC 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 June 30, 2024 and December 31, 2023. 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 subject to income tax examinations by major taxing authorities since inception. There is currently no taxation imposed on income by the Government of the Cayman Islands. In accordance with Cayman income tax regulations, income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s financial statements. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Depository Insurance Coverage of $250,000. Any loss incurred or lack of access to such funds could have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received for sale of an asset or paid to transfer of a liability, in an orderly transaction between market participants at the measurement date. US GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include: ● Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. See Note 10 for additional information regarding liabilities measured at fair value. |
Convertible Promissory Note | Convertible Promissory Note The Company accounts for its convertible promissory note under ASC 815, Derivatives and Hedging (“ASC 815”). Under 815-15-25, the election can be at the inception of a financial instrument to account for the instrument under the fair value option under ASC 825. The Company has made such election for its convertible promissory note. Using fair value option, the convertible promissory note is required to be recorded at its initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the note are recognized as non-cash change in the fair value of the convertible promissory note in the statements of operations. The fair value of the option to convert into private warrants was valued utilizing the Monte Carlo model. |
Derivative Financial Instruments | 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 ASC Topic 815, “Derivatives and Hedging . ” The Company’s derivative instruments are recorded at fair value as of the closing date of the Initial Public Offering (December 3, 2021) and re-valued at each reporting date, with changes in the fair value reported in the statements of operations. Derivative assets and liabilities are classified on 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 Company has determined the Public Warrants and the Private Placement Warrants are a derivative instrument. As the Public Warrants and the Private Placement Warrants meet the definition of a derivative, the Public Warrants and the Private Placement Warrants are measured at fair value at issuance and at each reporting date in accordance with ASC 820, “ Fair Value Measurement,” with changes in fair value recognized in the statements of operations in the period of change. |
Warrant Liabilities | Warrant Liabilities The Company accounts for the Public Warrants and the Private Placement Warrants issued in connection with the Initial Public Offering and the Private Placement in accordance with the guidance contained in FASB ASC 815, “Derivatives and Hedging” |
Recent Accounting Standards | Recent Accounting Standards In June 2016, the Financial Accounting Standards Bureau (“FASB”) issued Accounting Standards Update 2016-13 – Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This update requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Since June 2016, FASB issued clarifying updates to the new standard including changing the effective date for smaller reporting companies. The guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, with early adoption permitted. We adopted ASU 2016-13 on January 1, 2023. The adoption of ASU 2016-13 did not have a material impact on its financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on our financial statements. |
RESTATEMENT OF PREVIOUSLY ISS_2
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | |
Schedule of restated financial information for the periods previously reported | As Previously Reported Adjustment As Restated Balance Sheet as of March 31, 2024 (unaudited) Notes payable $ 802,311 $ 1,942,689 $ 2,745,000 Total Current Liabilities $ 1,765,241 $ 1,942,689 $ 3,707,930 Total Liabilities $ 11,072,991 $ 1,942,689 $ 13,015,680 Accumulated Deficit $ (11,003,833) $ (1,942,689) $ (12,946,522) Total Shareholders’ Deficit $ (11,003,258) $ (1,942,689) $ (12,945,947) As Previously Reported Adjustment As Restated Statement of Operations as of March 31, 2024 (unaudited) Change in fair value of convertible notes $ 689,465 $ (689,465) $ — Net income $ 980,498 $ (689,465) $ 291,033 Basic and diluted net income per share, Class A ordinary shares subject to possible redemption $ 0.08 $ (0.06) $ 0.02 Basic and diluted net income per Class B ordinary share $ 0.08 $ (0.06) $ 0.02 As Previously Reported Adjustment As Restated Statements of Cash Flows as of March 31, 2024 (unaudited) Net income $ 980,498 $ (689,465) $ 291,033 Loss (gain) on change in fair value of note payable $ (689,465) $ 689,465 $ — |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of calculation of basic and diluted net loss per ordinary share | For the Three Months For the Three Months Ended June 30, Ended June 30, 2024 2023 (Restated) Class A Redeemable ordinary shares Numerator: Allocation of net income (loss), as adjusted $ 4,710 $ (530,621) Denominator: Basic and diluted weighted average shares outstanding 4,105,015 7,318,182 Basic and diluted net income (loss) per Class A Ordinary Shares $ 0.00 $ (0.07) Class B Non-redeemable ordinary shares (1) Numerator: Allocation of net income (loss), as adjusted $ 6,597 $ (416,917) Denominator: Basic and diluted weighted average shares outstanding 5,750,000 5,750,000 Basic and diluted net income (loss) per Class B Ordinary Shares $ 0.00 $ (0.07) For the Six Months For the Six Months Ended June 30, Ended June 30, 2024 2023 Class A Redeemable ordinary shares Numerator: Allocation of net income (loss), as adjusted $ 140,833 $ (509,122) Denominator: Basic and diluted weighted average shares outstanding 5,013,940 12,083,375 Basic and diluted net income (loss) per Class A Ordinary Shares $ 0.03 $ (0.04) Class B Non-redeemable ordinary shares Numerator: Allocation of net income (loss), as adjusted $ 161,507 $ (242,271) Denominator: Basic and diluted weighted average shares outstanding 5,750,000 5,750,000 Basic and diluted net income (loss) per Class B Ordinary Shares $ 0.03 $ (0.04) (1) In May 2024, the Company entered into a certain waiver with Mizuho Securities USA LLC (“Mizuho”), one of the underwriters of the Company’s Initial Public Offering, pursuant to which Mizuho agreed to a forfeiture of all 300,300 Class B ordinary shares acquired by it at the time of, and deemed compensation for, the IPO. As of the date of this Quarterly Report, the forfeiture of the 300,300 Class B ordinary shares has not yet been completed. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
FAIR VALUE MEASUREMENTS | |
Schedule of company's assets and liabilities that are measured at fair value | June 30, December 31, Description Level 2024 Level 2023 Assets: Cash and investments held in Trust Account 1 $ 42,901,415 1 $ 65,954,638 Liabilities: Warrant liability – Private Placement Warrants 3 729,616 3 188,472 Warrant liability – Public Warrants 1 745,200 1 164,300 |
Schedule of changes in fair value including net transfers in and/or out of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3 | Fair Value Measurement Using Level 3 Inputs Total Balance, December 31, 2023 $ 188,472 Change in fair value of derivative warrant liabilities 541,144 Balance, June 30, 2024 $ 729,616 |
Schedule of key inputs into the Monte Carlo simulation model and the modified Black-Scholes model | June 30, 2024 December 31, 2023 Share price $ 11.45 $ 11.08 Exercise price $ 11.50 $ 11.50 Risk-free interest rate 4.85 % 4.83 % Expected life of warrants 1.62 years 5.48 years Expected volatility of underlying shares de minimis % de minimis % Dividend yield 0.00 % 0.00 % Probability of business combination 75.00 % 50.00 % |
DESCRIPTION OF ORGANIZATION A_2
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Apr. 16, 2024 $ / shares shares | Dec. 08, 2021 USD ($) $ / shares shares | Dec. 03, 2021 USD ($) $ / shares shares | Jun. 17, 2021 shares | May 21, 2021 item | May 31, 2024 shares | Jun. 30, 2024 USD ($) $ / shares shares | Jun. 30, 2024 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) shares | |
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |||||||||
Condition for future business combination number of businesses minimum | item | 1 | ||||||||
Sale of Units, net of underwriting discounts (in shares) | 23,000,000 | ||||||||
Proceeds from issuance initial public offering | $ | $ 230,000,000 | ||||||||
Purchase price, per unit | $ / shares | $ 10 | ||||||||
Transaction costs | $ | $ 14,183,689 | ||||||||
Underwriting fees | $ | 4,000,000 | $ 4,000,000 | |||||||
Deferred underwriting commission | $ | 8,650,000 | $ 865,000 | $ 865,000 | 8,650,000 | |||||
Offering costs | $ | $ 533,689 | ||||||||
Cash | $ | 41,096 | $ 41,096 | |||||||
Condition for future business combination use of proceeds percentage | 80 | ||||||||
Condition for future business combination threshold percentage ownership | 50 | ||||||||
Redemption limit percentage without prior consent | 100 | ||||||||
Obligation to redeem Public Shares if entity does not complete a Business Combination (as a percent) | 100% | ||||||||
Threshold business days for redemption of public shares | 10 days | ||||||||
Maximum allowed dissolution expenses | $ | $ 100,000 | ||||||||
Cash held in the Trust Account | $ | $ 41,096 | 41,096 | $ 40,621 | ||||||
Working capital deficit | $ | $ 3,654,956 | ||||||||
Public Warrants | |||||||||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |||||||||
Exercise price of warrants | $ / shares | $ 11.50 | $ 11.50 | |||||||
Public Warrants | Class A ordinary shares | |||||||||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |||||||||
Number of shares issuable per warrant | 1 | ||||||||
Exercise price of warrants | $ / shares | $ 11.50 | ||||||||
Initial Public Offering | |||||||||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |||||||||
Sale of Units, net of underwriting discounts (in shares) | 20,000,000 | ||||||||
Proceeds from issuance initial public offering | $ | $ 200,000,000 | ||||||||
Purchase price, per unit | $ / shares | $ 10.20 | ||||||||
Net proceeds of units sale | $ | $ 234,600,000 | ||||||||
Redemption price public share (per share) | $ / shares | $ 10.20 | ||||||||
Redemption limit percentage without prior consent | 15 | ||||||||
Initial Public Offering | Class A ordinary shares | |||||||||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |||||||||
Sale of Units, net of underwriting discounts (in shares) | 23,000,000 | ||||||||
Private Placement | Private Placement Warrants | |||||||||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |||||||||
Sale of Private Placement Warrants (in shares) | 11,259,500 | ||||||||
Price of warrant | $ / shares | $ 1 | ||||||||
Proceeds from sale of Private Placement Warrants | $ | $ 11,259,500 | ||||||||
Over-allotment option | |||||||||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |||||||||
Sale of Units, net of underwriting discounts (in shares) | 3,000,000 | 3,000,000 | |||||||
Proceeds from issuance initial public offering | $ | $ 30,000,000 | $ 30,000,000 | |||||||
Purchase price, per unit | $ / shares | $ 10 | ||||||||
Mizuho Securities USA LLC | |||||||||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |||||||||
Number of shares agreed to forfeit | 300,300 | ||||||||
Mizuho Securities USA LLC | Class B ordinary shares | |||||||||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |||||||||
Number of shares agreed to forfeit | 300,300 | 300,300 | |||||||
Mizuho Securities USA LLC | Over-allotment option | Class B ordinary shares | |||||||||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |||||||||
Number of shares issued | 300,300 | ||||||||
Related Parties | CPC Sponsor | |||||||||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |||||||||
Percentage of shares held after the completion of securities transfer transaction | 45% | ||||||||
Related Parties | Class B ordinary shares | |||||||||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |||||||||
Purchase price, per unit | $ / shares | $ 0.005 | $ 0.005 | |||||||
Transaction costs | $ | $ 999,517 | $ 999,517 | |||||||
Number of shares issued | 30,000 | ||||||||
Related Parties | Class B ordinary shares | CPC Sponsor | |||||||||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |||||||||
Purchase price, per unit | $ / shares | $ 1 | ||||||||
Number of shares issued | 3,542,305 | ||||||||
Related Parties | Private Placement Warrants | CPC Sponsor | |||||||||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |||||||||
Number of shares issued | 3,940,825 | ||||||||
Number of warrants issued | 3,940,825 | ||||||||
Number of shares issuable per warrant | 1 | ||||||||
Exercise price of warrants | $ / shares | $ 11.50 | ||||||||
Number of warrants held | 3,940,825 | ||||||||
Related Parties | Initial Public Offering | |||||||||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |||||||||
Purchase price, per unit | $ / shares | $ 10 | ||||||||
Related Parties | Private Placement | Private Placement Warrants | |||||||||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |||||||||
Sale of Private Placement Warrants (in shares) | 10,659,500 | ||||||||
Price of warrant | $ / shares | $ 1 | ||||||||
Proceeds from sale of Private Placement Warrants | $ | $ 10,659,500 | ||||||||
Related Parties | Over-allotment option | Private Placement Warrants | |||||||||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |||||||||
Sale of Private Placement Warrants (in shares) | 600,000 | ||||||||
Price of warrant | $ / shares | $ 1 | ||||||||
Proceeds from sale of Private Placement Warrants | $ | $ 600,000 | ||||||||
Related Parties | Mizuho Securities USA LLC | Class B ordinary shares | |||||||||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |||||||||
Purchase price, per unit | $ / shares | $ 3.33 | ||||||||
Number of shares issued | 300,300 | ||||||||
Related Parties | Founder shares | CPC Sponsor | |||||||||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |||||||||
Number of shares held and controlled | 4,126,215 | ||||||||
Related Parties | Founder shares | Class B ordinary shares | |||||||||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |||||||||
Number of shares issued | 3,542,305 | 5,750,000 |
RESTATEMENT OF PREVIOUSLY ISS_3
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||
Amount by which the Notes Payable account was understated | $ 689,465 | $ 1,253,224 | ||||
Amount by which the Change in fair value of convertible notes account was overstated | 689,465 | 1,253,224 | ||||
Convertible promissory note payable | 2,745,000 | |||||
Total Current Liabilities | 3,707,930 | 3,090,187 | $ 3,763,170 | |||
Total Liabilities | 13,015,680 | 12,092,959 | 6,102,986 | |||
Accumulated deficit | (12,946,522) | (12,043,361) | (5,995,347) | |||
Total Shareholders' Deficit | (12,945,947) | $ (12,042,786) | $ (5,994,772) | $ (13,490,431) | $ (11,071,840) | $ (8,596,434) |
As Previously Reported | ||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||
Convertible promissory note payable | 802,311 | |||||
Total Current Liabilities | 1,765,241 | |||||
Total Liabilities | 11,072,991 | |||||
Accumulated deficit | (11,003,833) | |||||
Total Shareholders' Deficit | (11,003,258) | |||||
Adjustment | ||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||
Convertible promissory note payable | 1,942,689 | |||||
Total Current Liabilities | 1,942,689 | |||||
Total Liabilities | 1,942,689 | |||||
Accumulated deficit | (1,942,689) | |||||
Total Shareholders' Deficit | $ (1,942,689) |
RESTATEMENT OF PREVIOUSLY ISS_4
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Statement of Operations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||
Net Income (Loss) | $ 11,307 | $ 291,033 | $ (947,538) | $ 196,145 | $ 302,340 | $ (751,393) |
Class A ordinary shares subject to possible redemption | ||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||
Basic net income (loss) per share (in dollars per share) | $ 0 | $ 0.02 | $ (0.07) | $ 0.03 | $ (0.04) | |
Diluted net income (loss) per share (in dollars per share) | 0 | (0.07) | 0.03 | (0.04) | ||
Class B ordinary shares | ||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||
Basic net income (loss) per share (in dollars per share) | 0 | $ 0.02 | (0.07) | 0.03 | (0.04) | |
Diluted net income (loss) per share (in dollars per share) | $ 0 | $ (0.07) | $ 0.03 | $ (0.04) | ||
As Previously Reported | ||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||
Change in fair value of convertible notes | $ 689,465 | |||||
Net Income (Loss) | $ 980,498 | |||||
As Previously Reported | Class A ordinary shares subject to possible redemption | ||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||
Basic net income (loss) per share (in dollars per share) | $ 0.08 | |||||
Diluted net income (loss) per share (in dollars per share) | 0.08 | |||||
As Previously Reported | Class B ordinary shares | ||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||
Basic net income (loss) per share (in dollars per share) | 0.08 | |||||
Diluted net income (loss) per share (in dollars per share) | $ 0.08 | |||||
Adjustment | ||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||
Change in fair value of convertible notes | $ (689,465) | |||||
Net Income (Loss) | $ (689,465) | |||||
Adjustment | Class A ordinary shares subject to possible redemption | ||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||
Basic net income (loss) per share (in dollars per share) | $ (0.06) | |||||
Diluted net income (loss) per share (in dollars per share) | (0.06) | |||||
Adjustment | Class B ordinary shares | ||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||
Basic net income (loss) per share (in dollars per share) | (0.06) | |||||
Diluted net income (loss) per share (in dollars per share) | $ (0.06) |
RESTATEMENT OF PREVIOUSLY ISS_5
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Statements of Cash Flows (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||
Net Income (Loss) | $ 11,307 | $ 291,033 | $ (947,538) | $ 196,145 | $ 302,340 | $ (751,393) |
As Previously Reported | ||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||
Net Income (Loss) | 980,498 | |||||
Loss (gain) on change in fair value of note payable | (689,465) | |||||
Adjustment | ||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | ||||||
Net Income (Loss) | (689,465) | |||||
Loss (gain) on change in fair value of note payable | $ 689,465 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Apr. 16, 2024 | May 31, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 03, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||
Cash | $ 41,096 | $ 41,096 | $ 40,621 | |||||||
Cash equivalents | 0 | 0 | 0 | |||||||
Cash and investments held in Trust Account | 42,901,415 | 42,901,415 | 65,954,638 | |||||||
Offering costs | 442,567 | |||||||||
Deferred underwriting fees | 12,650,000 | |||||||||
Underwriting fees | 4,000,000 | $ 4,000,000 | ||||||||
Deferred fees | 865,000 | 865,000 | 8,650,000 | $ 8,650,000 | ||||||
Current period remeasurement to redemption value | 845,132 | $ 1,194,194 | $ 1,471,053 | $ 2,671,551 | ||||||
Unrecognized tax benefits | 0 | 0 | 0 | |||||||
Unrecognized tax benefits accrued for interest and penalties | $ 0 | $ 0 | 0 | |||||||
Mizuho Securities USA LLC | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||
Number of shares agreed to forfeit | 300,300 | |||||||||
Initial Public Offering | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||
Offering costs | $ 534,172 | |||||||||
Class A ordinary shares subject to possible redemption | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||
Shares subject to possible redemption | 3,717,207 | 3,717,207 | 5,922,865 | |||||||
Shares subject to possible redemption, amount | $ 42,901,415 | $ 42,901,415 | $ 65,954,638 | |||||||
Current period remeasurement to redemption value | $ 2,039,326 | $ 4,142,604 | ||||||||
Class B ordinary shares | Mizuho Securities USA LLC | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||
Net of consideration | $ 999,517 | |||||||||
Number of shares agreed to forfeit | 300,300 | 300,300 | ||||||||
Class B ordinary shares | Initial Public Offering | Centaury Management Ltd | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||
Number of shares issued | 15,000 | |||||||||
Class B ordinary shares | Over-allotment option | Mizuho Securities USA LLC | ||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||
Number of shares issued | 300,300 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basic and diluted net income (loss) per ordinary share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Class A Redeemable ordinary shares | ||||
Numerator: | ||||
Allocation of net income (loss), as adjusted | $ 4,710 | $ (530,621) | $ 140,833 | $ (509,122) |
Denominator: | ||||
Weighted average shares outstanding, basic | 4,105,015 | 7,318,182 | 5,013,940 | 12,083,375 |
Weighted average shares outstanding, diluted | 4,105,015 | 7,318,182 | 5,013,940 | 12,083,375 |
Basic net income (loss) per share | $ 0 | $ (0.07) | $ 0.03 | $ (0.04) |
Diluted net income (loss) per share | $ 0 | $ (0.07) | $ 0.03 | $ (0.04) |
Class B Non-redeemable Ordinary Shares | ||||
Numerator: | ||||
Allocation of net income (loss), as adjusted | $ 6,597 | $ (416,917) | $ 161,507 | $ (242,271) |
Denominator: | ||||
Weighted average shares outstanding, basic | 5,750,000 | 5,750,000 | 5,750,000 | 5,750,000 |
Weighted average shares outstanding, diluted | 5,750,000 | 5,750,000 | 5,750,000 | 5,750,000 |
Basic net income (loss) per share | $ 0 | $ (0.07) | $ 0.03 | $ (0.04) |
Diluted net income (loss) per share | $ 0 | $ (0.07) | $ 0.03 | $ (0.04) |
INITIAL PUBLIC OFFERING (Detail
INITIAL PUBLIC OFFERING (Details) - USD ($) | 6 Months Ended | |||
Dec. 08, 2021 | Dec. 03, 2021 | Jun. 30, 2024 | Dec. 31, 2023 | |
INITIAL PUBLIC OFFERING | ||||
Number of units sold | 23,000,000 | |||
Purchase price, per unit | $ 10 | |||
Gross proceeds from issuance initial public offering | $ 230,000,000 | |||
Number of warrants | 22,759,500 | |||
Class A ordinary shares | ||||
INITIAL PUBLIC OFFERING | ||||
Ordinary shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||
Public Warrants | ||||
INITIAL PUBLIC OFFERING | ||||
Exercise price of warrants | $ 11.50 | |||
Number of warrants | 11,500,000 | |||
Public Warrants | Class A ordinary shares | ||||
INITIAL PUBLIC OFFERING | ||||
Number of shares issuable per warrant | 1 | |||
Exercise price of warrants | $ 11.50 | |||
Initial Public Offering | ||||
INITIAL PUBLIC OFFERING | ||||
Number of units sold | 20,000,000 | |||
Purchase price, per unit | $ 10.20 | |||
Gross proceeds from issuance initial public offering | $ 200,000,000 | |||
Initial Public Offering | Class A ordinary shares | ||||
INITIAL PUBLIC OFFERING | ||||
Number of units sold | 23,000,000 | |||
Number of shares in a unit | 1 | |||
Ordinary shares, par value (in dollars per share) | $ 0.0001 | |||
Number of warrants in a unit | 1 | |||
Number of warrants | 5,750,000 | |||
Initial Public Offering | Public Warrants | ||||
INITIAL PUBLIC OFFERING | ||||
Number of warrants in a unit | 0.5 | |||
Over-allotment option | ||||
INITIAL PUBLIC OFFERING | ||||
Number of units sold | 3,000,000 | 3,000,000 | ||
Purchase price, per unit | $ 10 | |||
Gross proceeds from issuance initial public offering | $ 30,000,000 | $ 30,000,000 |
PRIVATE PLACEMENTS (Details)
PRIVATE PLACEMENTS (Details) - Private Placement Warrants - USD ($) | 6 Months Ended | |
Dec. 08, 2021 | Jun. 30, 2024 | |
PRIVATE PLACEMENTS | ||
Threshold period for not to transfer, assign or sell any of their shares or warrants after the completion of the initial business combination | 30 days | 30 days |
Private Placement | ||
PRIVATE PLACEMENTS | ||
Number of warrants to purchase shares issued | 11,259,500 | |
Price of warrants | $ 1 | |
Aggregate purchase price | $ 11,259,500 |
RELATED PARTY TRANSACTIONS - Fo
RELATED PARTY TRANSACTIONS - Founder Shares (Details) | 6 Months Ended | 12 Months Ended | |||||
Apr. 16, 2024 $ / shares shares | Nov. 30, 2021 shares | Jun. 17, 2021 USD ($) shares | Jun. 30, 2024 USD ($) D $ / shares shares | Dec. 31, 2021 USD ($) | Dec. 03, 2021 $ / shares | Aug. 07, 2021 shares | |
RELATED PARTY TRANSACTIONS | |||||||
Issued price per share | $ / shares | $ 10 | ||||||
Verde | |||||||
RELATED PARTY TRANSACTIONS | |||||||
Amount payable in the event of consummation of initial business combination | $ | $ 83,125 | ||||||
Related Parties | Private Placement Warrants | CPC Sponsor | |||||||
RELATED PARTY TRANSACTIONS | |||||||
Number of shares issued | 3,940,825 | ||||||
Number of warrants issued | 3,940,825 | ||||||
Number of warrants held | 3,940,825 | ||||||
Related Parties | Class B ordinary shares | |||||||
RELATED PARTY TRANSACTIONS | |||||||
Number of shares issued | 30,000 | ||||||
Aggregate purchase price | $ | $ 150 | ||||||
Issued price per share | $ / shares | $ 0.005 | ||||||
Share-based compensation | $ | $ 569,868 | ||||||
Related Parties | Class B ordinary shares | CPC Sponsor | |||||||
RELATED PARTY TRANSACTIONS | |||||||
Number of shares issued | 3,542,305 | ||||||
Issued price per share | $ / shares | $ 1 | ||||||
Founder shares | |||||||
RELATED PARTY TRANSACTIONS | |||||||
Shares subject to forfeiture | 0 | ||||||
Founder shares | Related Parties | CPC Sponsor | |||||||
RELATED PARTY TRANSACTIONS | |||||||
Number of shares held and controlled | 4,126,215 | ||||||
Founder shares | Related Parties | Class B ordinary shares | |||||||
RELATED PARTY TRANSACTIONS | |||||||
Number of shares issued | 3,542,305 | 5,750,000 | |||||
Aggregate purchase price | $ | $ 25,000 | ||||||
Number of shares surrendered and forfeited | 718,750 | ||||||
Aggregate number of shares owned | 5,750,000 | 5,031,250 | |||||
Shares subject to forfeiture | 750,000 | ||||||
Stock converted basis, percentage | 20 | ||||||
Restrictions on transfer period of time after business combination completion | 1 year | ||||||
Stock price trigger to transfer, assign or sell any shares or warrants of the company, after the completion of the initial business combination (in dollars per share) | $ / shares | $ 12 | ||||||
Threshold trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination | D | 20 | ||||||
Threshold consecutive trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination | D | 30 | ||||||
Threshold period after the business combination in which the 20 trading days within any 30 trading day period commences | 150 days |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) | 1 Months Ended | 6 Months Ended | |||||||||
Jun. 16, 2024 USD ($) | May 18, 2024 USD ($) | May 01, 2024 USD ($) | Apr. 18, 2024 USD ($) | Aug. 10, 2023 USD ($) item | Nov. 30, 2021 USD ($) | Jun. 30, 2024 USD ($) $ / shares | Jun. 30, 2023 USD ($) | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Apr. 24, 2023 USD ($) | |
RELATED PARTY TRANSACTIONS | |||||||||||
Aggregated of funding loans | $ 2,745,000 | ||||||||||
Promissory Note with Related Party | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Maximum borrowing capacity of related party promissory note | $ 1,500,000 | ||||||||||
Repayment of promissory note - related party | 1 | ||||||||||
Administrative Services Agreement | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Expenses per month | $ 15,000 | ||||||||||
Related Parties | Time Extension Funding Loans | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Notes Payable | 1,554,000 | $ 1,510,000 | |||||||||
Loan conversion agreement warrant | $ 3,000,000 | ||||||||||
Price of warrant | $ / shares | $ 1 | ||||||||||
Related Parties | Administrative Services Agreement | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Notes Payable | $ 15,000 | 15,000 | |||||||||
Expenses incurred and paid | 60,000 | $ 90,000 | |||||||||
Related Parties | Sponsor | 2023 April Promissory Note and 2023 August Promissory Note | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Number of promissory notes issued | item | 2 | ||||||||||
Payable term of promissory note (in months) | 15 months | ||||||||||
Aggregate principal amount | 1,956,525 | 725,000 | |||||||||
Related Parties | Sponsor | 2023 April Promissory Note | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Maximum borrowing capacity of related party promissory note | $ 250,000 | ||||||||||
Related Parties | Sponsor | 2023 August Promissory Note | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Maximum borrowing capacity of related party promissory note | $ 500,000 | ||||||||||
Related Parties | Sponsor | 2024 April Extension Promissory Notes | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Proceeds from Related Party Debt | $ 20,000 | ||||||||||
Related Parties | Verde | Time Extension Funding Loans | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Amount deposited | 475,000 | ||||||||||
Finance extension | 100,000 | ||||||||||
Related Parties | CPC Sponsor Opportunities I, LP | 2024 April Extension Promissory Notes | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Proceeds from Related Party Debt | 21,800 | ||||||||||
Related Parties | CPC Sponsor Opportunities I, LP | 2024 May Extension Promissory Notes | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Proceeds from Related Party Debt | $ 32,700 | ||||||||||
Related Parties | CPC Sponsor Opportunities I, LP | 2024 June Extension Promissory Notes | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Proceeds from Related Party Debt | $ 32,700 | ||||||||||
Related Parties | CPC Sponsor Opportunities I (Parallel), LP | 2024 April Extension Promissory Notes | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Proceeds from Related Party Debt | $ 18,200 | ||||||||||
Related Parties | CPC Sponsor Opportunities I (Parallel), LP | 2024 May Extension Promissory Notes | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Proceeds from Related Party Debt | $ 27,300 | ||||||||||
Related Parties | CPC Sponsor Opportunities I (Parallel), LP | 2024 June Extension Promissory Notes | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Proceeds from Related Party Debt | $ 27,300 | ||||||||||
Related Parties | CPC Sponsor | Working Capital Loans | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Aggregated of funding loans | 461,525 | ||||||||||
Related Parties | CPC Sponsor | Time Extension Funding Loans | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Aggregated of funding loans | 179,000 | ||||||||||
Sponsor | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Aggregated of funding loans | $ 2,870,000 | $ 2,235,000 | |||||||||
Sponsor | May Promissory Note 2024 | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Maximum borrowing capacity of related party promissory note | $ 500,000 | ||||||||||
Payable term of promissory note (in months) | 15 months | ||||||||||
Sponsor | 2024 April Extension Promissory Notes | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Payable term of promissory note (in months) | 15 months | ||||||||||
Sponsor | 2024 May Extension Promissory Notes | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Payable term of promissory note (in months) | 15 months | ||||||||||
Sponsor | 2024 June Extension Promissory Notes | |||||||||||
RELATED PARTY TRANSACTIONS | |||||||||||
Payable term of promissory note (in months) | 15 months |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Apr. 16, 2024 shares | Dec. 08, 2021 USD ($) $ / shares shares | Dec. 03, 2021 USD ($) $ / shares shares | Jun. 17, 2021 USD ($) shares | May 31, 2024 shares | Jun. 30, 2024 USD ($) item $ / shares shares | Jun. 30, 2024 USD ($) item $ / shares shares | Dec. 31, 2023 shares | May 02, 2024 USD ($) | |
COMMITMENTS AND CONTINGENCIES | |||||||||
Maximum number of demands for registration of securities | item | 3 | 3 | |||||||
Number of days granted to underwriters for purchasing additional units | 45 days | ||||||||
Number of units sold | shares | 23,000,000 | ||||||||
Aggregate underwriter cash discount | $ 7,000,000 | ||||||||
Deferred fee per unit | $ / shares | $ 0.35 | ||||||||
Issued price per share | $ / shares | $ 10 | ||||||||
Gross proceeds from issuance initial public offering | $ 230,000,000 | ||||||||
Transaction costs | $ 14,183,689 | ||||||||
Class B ordinary shares | Related Parties | |||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||
Issued price per share | $ / shares | $ 0.005 | $ 0.005 | |||||||
Number of shares issued | shares | 30,000 | ||||||||
Aggregate purchase price | $ 150 | ||||||||
Transaction costs | $ 999,517 | $ 999,517 | |||||||
Mizuho Securities USA LLC | |||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||
Number of shares agreed to forfeit | shares | 300,300 | ||||||||
Amount of full and final payment to legal counsel upon consummation of initial business combination | $ 130,000 | ||||||||
Mizuho Securities USA LLC | Class B ordinary shares | |||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||
Number of shares agreed to forfeit | shares | 300,300 | 300,300 | |||||||
Mizuho Securities USA LLC | Class B ordinary shares | Related Parties | |||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||
Issued price per share | $ / shares | $ 3.33 | ||||||||
Number of shares issued | shares | 300,300 | ||||||||
Aggregate purchase price | $ 1,000,000 | ||||||||
Centaury Management Ltd | Class B ordinary shares | Related Parties | |||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||
Issued price per share | $ / shares | $ 0.005 | ||||||||
Number of shares issued | shares | 15,000 | ||||||||
Aggregate purchase price | $ 75 | ||||||||
Founder shares | Class B ordinary shares | Related Parties | |||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||
Number of shares issued | shares | 3,542,305 | 5,750,000 | |||||||
Aggregate purchase price | $ 25,000 | ||||||||
Over-allotment option | |||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||
Number of units sold | shares | 3,000,000 | 3,000,000 | |||||||
Underwriting cash discount per unit | $ / shares | $ 0.20 | ||||||||
Aggregate underwriter cash discount | $ 4,000,000 | ||||||||
Issued price per share | $ / shares | $ 10 | ||||||||
Gross proceeds from issuance initial public offering | $ 30,000,000 | $ 30,000,000 | |||||||
Aggregate deferred underwriting fee payable | $ 1,650,000 | ||||||||
Over-allotment option | Mizuho Securities USA LLC | Class B ordinary shares | |||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||
Number of shares issued | shares | 300,300 |
SHAREHOLDERS' DEFICIT - Prefere
SHAREHOLDERS' DEFICIT - Preference shares (Details) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
SHAREHOLDERS' DEFICIT | ||
Preference shares, shares authorized | 5,000,000 | 5,000,000 |
Preference shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred shares, shares issued | 0 | 0 |
Preference shares, shares outstanding | 0 | 0 |
SHAREHOLDERS' DEFICIT - Ordinar
SHAREHOLDERS' DEFICIT - Ordinary shares (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Apr. 16, 2024 shares | May 31, 2024 shares | Jun. 30, 2024 Vote $ / shares shares | Jun. 30, 2024 Vote $ / shares shares | Dec. 31, 2023 Vote $ / shares shares | Nov. 30, 2021 shares | Aug. 07, 2021 shares | |
Mizuho Securities USA LLC | |||||||
SHAREHOLDERS' DEFICIT | |||||||
Number of shares agreed to forfeit | 300,300 | ||||||
Class A ordinary shares | |||||||
SHAREHOLDERS' DEFICIT | |||||||
Common shares, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | ||||
Common shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Common shares, votes per share | Vote | 1 | 1 | 1 | ||||
Class A ordinary shares subject to possible redemption | |||||||
SHAREHOLDERS' DEFICIT | |||||||
Ordinary shares subject to possible redemption, shares outstanding | 3,717,207 | 3,717,207 | 5,922,865 | ||||
Class A ordinary not subject to possible redemption | |||||||
SHAREHOLDERS' DEFICIT | |||||||
Ordinary shares subject to possible redemption, shares outstanding | 3,717,207 | 3,717,207 | 5,922,865 | ||||
Ordinary shares subject to possible redemption, shares issued | 3,717,207 | 3,717,207 | 5,922,865 | ||||
Common shares, shares issued | 0 | 0 | 0 | ||||
Common shares, shares outstanding | 0 | 0 | 0 | ||||
Class B ordinary shares | |||||||
SHAREHOLDERS' DEFICIT | |||||||
Common shares, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | ||||
Common shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Common shares, votes per share | Vote | 1 | 1 | 1 | ||||
Common shares, shares issued | 5,750,000 | 5,750,000 | 5,750,000 | ||||
Common shares, shares outstanding | 5,750,000 | 5,750,000 | 5,750,000 | ||||
Number of Class A common stock issued upon conversion of each share (in shares) | 1 | ||||||
Aggregated shares issued upon converted basis (in percent) | 20% | 20% | |||||
Class B ordinary shares | Mizuho Securities USA LLC | |||||||
SHAREHOLDERS' DEFICIT | |||||||
Number of shares agreed to forfeit | 300,300 | 300,300 | |||||
Founder shares | Related Party [Member] | Class B ordinary shares | |||||||
SHAREHOLDERS' DEFICIT | |||||||
Aggregate number of shares owned | 5,750,000 | 5,031,250 |
WARRANTS LIABILITIES (Details)
WARRANTS LIABILITIES (Details) - USD ($) | 6 Months Ended | ||
Dec. 08, 2021 | Jun. 30, 2024 | Dec. 31, 2023 | |
WARRANTS LIABILITIES | |||
Warrants outstanding | 22,759,500 | ||
Derivative warrant liabilities | $ 1,474,816 | $ 352,772 | |
Warrants | |||
WARRANTS LIABILITIES | |||
Derivative warrant liabilities | $ 1,474,816 | $ 352,772 | |
Private Placement Warrants | |||
WARRANTS LIABILITIES | |||
Threshold period for not to transfer, assign or sell any of their shares or warrants after the completion of the initial business combination | 30 days | 30 days | |
Warrants outstanding | 11,259,500 | ||
Public Warrants | |||
WARRANTS LIABILITIES | |||
Warrants exercisable term from the completion of business combination | 30 days | ||
Warrants exercisable term from the closing of the public offering | 12 months | ||
Public Warrants expiration term | 5 years | ||
Threshold period for filling registration statement after business combination | 20 days | ||
Threshold period for filling registration statement within number of days of business combination | 60 days | ||
Warrants outstanding | 11,500,000 | ||
Public Warrants | Redemption of warrants when the price per class A ordinary share equals or exceeds $18.00 | |||
WARRANTS LIABILITIES | |||
Stock price trigger for redemption of public warrants | $ 18 | ||
Redemption price per public warrant (in dollars per share) | $ 0.01 | ||
Minimum threshold written notice period for redemption of public warrants | 30 days | ||
Redemption period | 30 days | ||
Threshold trading days for redemption of public warrants | 10 days | ||
Threshold consecutive trading days for redemption of public warrants | 20 days | ||
Public Warrants | Redemption of warrants when the price per class A ordinary share equals or exceeds $10.00 | |||
WARRANTS LIABILITIES | |||
Stock price trigger for redemption of public warrants | $ 10 | ||
Redemption price per public warrant (in dollars per share) | $ 0.10 | ||
Minimum threshold written notice period for redemption of public warrants | 30 days | ||
Threshold trading days for redemption of public warrants | 10 days | ||
Threshold consecutive trading days for redemption of public warrants | 20 days |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Assets: | ||
Cash and investments held in Trust Account | $ 42,901,415 | $ 65,954,638 |
Liabilities: | ||
Warranty liability | 1,474,816 | 352,772 |
Level 1 | ||
Assets: | ||
Cash and investments held in Trust Account | 42,901,415 | 65,954,638 |
Level 1 | Public Warrants | ||
Liabilities: | ||
Warranty liability | 745,200 | 164,300 |
Level 3 | Private Placement Warrants | ||
Liabilities: | ||
Warranty liability | $ 729,616 | $ 188,472 |
FAIR VALUE MEASUREMENTS - Level
FAIR VALUE MEASUREMENTS - Level 3 Fair Value Measurement Inputs (Details) | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Level 3 Fair Value Measurement Inputs | |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Fair Value Adjustment of Warrants |
Fair Value Measurement Using Level 3 Inputs | |
Level 3 Fair Value Measurement Inputs | |
Beginning balance of period | $ 188,472 |
Change in fair value of derivative warrant liabilities | 541,144 |
Ending balance of period | $ 729,616 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Dec. 03, 2021 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
FAIR VALUE MEASUREMENTS | ||||||
Derivative warrant liabilities | $ 1,474,816 | $ 1,474,816 | $ 352,772 | |||
Change in fair value of warrant liabilities | 817,066 | $ 1,548,941 | 1,122,044 | $ 3,071,532 | ||
Gain on change in fair value of convertible debt | $ 608,665 | $ 608,776 | ||||
Public Warrants | ||||||
FAIR VALUE MEASUREMENTS | ||||||
Exercise price of warrant | $ 11.50 | $ 11.50 | ||||
Initial Public Offering | Public Warrants | ||||||
FAIR VALUE MEASUREMENTS | ||||||
Number of warrants in a unit | 0.5 | |||||
Class A ordinary shares | Public Warrants | ||||||
FAIR VALUE MEASUREMENTS | ||||||
Exercise price of warrant | $ 11.50 | |||||
Class A ordinary shares | Initial Public Offering | ||||||
FAIR VALUE MEASUREMENTS | ||||||
Number of shares in a unit | 1 | |||||
Number of warrants in a unit | 1 |
FAIR VALUE MEASUREMENTS - Key i
FAIR VALUE MEASUREMENTS - Key inputs into the Monte Carlo simulation model and the modified Black-Scholes model to value the derivative warrant and note payable (Details) - Level 3 | Jun. 30, 2024 $ / shares Y | Dec. 31, 2023 $ / shares Y |
Share price | ||
FAIR VALUE MEASUREMENTS | ||
Derivative warrant liabilities, measurement input | 11.45 | 11.08 |
Exercise price | ||
FAIR VALUE MEASUREMENTS | ||
Derivative warrant liabilities, measurement input | 11.50 | 11.50 |
Risk-free interest rate | ||
FAIR VALUE MEASUREMENTS | ||
Derivative warrant liabilities, measurement input | 0.0485 | 0.0483 |
Expected life of warrants | ||
FAIR VALUE MEASUREMENTS | ||
Derivative warrant liabilities, measurement input | Y | 1.62 | 5.48 |
Dividend yield | ||
FAIR VALUE MEASUREMENTS | ||
Derivative warrant liabilities, measurement input | 0 | 0 |
Probability of business combination | ||
FAIR VALUE MEASUREMENTS | ||
Derivative warrant liabilities, measurement input | 0.7500 | 0.5000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||||||
Jul. 15, 2024 | Jul. 05, 2024 | May 01, 2024 | Apr. 16, 2024 | May 31, 2024 | Jun. 30, 2024 | Aug. 12, 2024 | Jul. 16, 2024 | May 02, 2024 | |
Promissory Note with Related Party | |||||||||
SUBSEQUENT EVENTS | |||||||||
Maximum borrowing capacity of related party promissory note | $ 1,500,000 | ||||||||
Mizuho Securities USA LLC | |||||||||
SUBSEQUENT EVENTS | |||||||||
Amount of full and final payment to legal counsel upon consummation of initial business combination | $ 130,000 | ||||||||
Number of shares agreed to forfeit | 300,300 | ||||||||
Related Parties | Verde | Time Extension Funding Loans | |||||||||
SUBSEQUENT EVENTS | |||||||||
Amount deposited | $ 475,000 | ||||||||
Sponsor | May Promissory Note 2024 | |||||||||
SUBSEQUENT EVENTS | |||||||||
Maximum borrowing capacity of related party promissory note | $ 500,000 | ||||||||
Debt Instrument, Term | 15 months | ||||||||
Class B ordinary shares | Mizuho Securities USA LLC | |||||||||
SUBSEQUENT EVENTS | |||||||||
Number of shares agreed to forfeit | 300,300 | 300,300 | |||||||
Subsequent event | |||||||||
SUBSEQUENT EVENTS | |||||||||
Amount deposited | $ 60,000 | ||||||||
Subsequent event | Related Parties | |||||||||
SUBSEQUENT EVENTS | |||||||||
Amount deposited | $ 60,000 | ||||||||
Subsequent event | Related Parties | CPC Sponsor Opportunities I, LP | July 2024 working capital promissory note | |||||||||
SUBSEQUENT EVENTS | |||||||||
Proceeds from Related Party Debt | 32,700 | ||||||||
Maximum borrowing capacity of related party promissory note | $ 545,000 | ||||||||
Subsequent event | Related Parties | CPC Sponsor Opportunities I (Parallel), LP | July 2024 working capital promissory note | |||||||||
SUBSEQUENT EVENTS | |||||||||
Proceeds from Related Party Debt | $ 27,300 | ||||||||
Maximum borrowing capacity of related party promissory note | $ 455,000 | ||||||||
Subsequent event | Sponsor | |||||||||
SUBSEQUENT EVENTS | |||||||||
Debt Instrument, Term | 15 months | 15 months | |||||||
Subsequent event | CPC Sponsor | July 2024 working capital promissory note | |||||||||
SUBSEQUENT EVENTS | |||||||||
Aggregate principal amount | $ 60,000 |