Financial Contributions and Trust Account - The company began contributing $100,000 per month to its trust account during the initial extension period due to 4,236,788 public shares remaining outstanding[42] - The company has raised a total of $204 million from its initial public offering and private unit sales, which is placed in the trust account[75] - As of March 31, 2024, the trust fund holds approximately $20,689,000, assuming no redemptions, which can be used for business combination options[105] - The net proceeds from the IPO and private unit sales are invested in U.S. government treasury bills or money market funds, minimizing interest rate risk[118] Market Overview and Growth Potential - The electric vehicle (EV) market is projected to grow at a CAGR of 33.6% from 2020, reaching $2,495.4 billion by 2027, with a volume of 233.9 million units by 2027[53] - The EV market's growth is supported by increasing investments from automotive OEMs and the deployment of charging stations by multinational corporations[53] - Non-incumbents have made over 90% of investments in future-mobility companies since 2010, with traditional automotive companies accounting for only 7%, or approximately $20 billion to $25 billion[48] Business Combination Strategy - The company is evaluating potential business combinations with a fair market value of at least 80% of the assets held in the trust account[81] - The fair market value of the target business must equal at least 80% of the trust account balance at the time of the business combination agreement[110] - The company is currently seeking an initial business combination with a single target business, which may limit diversification and increase risk[112] - The company aims to acquire a target business with significant growth prospects and embedded growth opportunities[92] Acquisition Process and Target Identification - The company has engaged Stifel as a financial advisor for business acquisitions, with compensation determined through arm's length negotiations[81] - The acquisition strategy emphasizes a proactive approach, including due diligence processes involving management meetings and customer interactions[88] - The company aims to identify attractive mobility technology-based businesses that can benefit from access to public markets[71] - The company is focused on sourcing potential business combination targets through extensive industry knowledge and relationships[69] - The company completed a private sale of 945,715 private units at a price of $10.00 per unit, generating gross proceeds of $9,457,150[100] - The company is targeting middle-market businesses, which are believed to provide the greatest number of investment opportunities[90] - The company has a strategy to monitor selected companies for up to four months to assess their activities under regular operating conditions[62] Management and Reporting - The management team has extensive experience in mobility sectors, enhancing the ability to identify and evaluate acquisition opportunities[98] - The company is classified as a "smaller reporting company," allowing for reduced disclosure obligations until certain revenue and market value thresholds are met[117]
Spree Acquisition 1 (SHAP) - 2023 Q4 - Annual Report