Kochav Defense Acquisition Corp. Sets Fixed Sponsor Payments for Proposed Extension

Kochav Defense has proposed replacing share-based sponsor funding with fixed monthly trust contributions of $300,000 initially and $100,000 thereafter, while eliminating the allowance for liquidation expenses. Shareholders will vote on the extension November 13, so the changes are not yet approved.

Kochav Defense Acquisition Corp. has revised the sponsor funding terms tied to its proposal to extend the time it has to complete an initial business combination. Shareholders are scheduled to vote on the extension at a November 13 meeting; the proposal has not yet been approved.

The revised terms replace contributions calculated partly by the number of public shares that remain unredeemed with fixed monthly payments into the company’s trust account. The company also plans to eliminate a permitted withdrawal for liquidation expenses.

Key details

Fixed trust contributions after approval: Kochav Sponsor LLC or its designees would contribute $300,000 for the first three months after shareholders approve the extension, followed by $100,000 per month thereafter.
How the terms changed: The prior arrangement called for $0.06 per unredeemed public share per month for the first three months, subject to a $300,000 total cap, and then $0.02 per unredeemed share per month, capped at $100,000 monthly. The new payments are fixed amounts rather than amounts tied to the number of shares that remain unredeemed.
No allowance for liquidation expenses: The company’s governing documents currently allow up to $100,000 of trust-account interest to be used for dissolution expenses if Kochav fails to complete a business combination and liquidates. In connection with the extension, the company plans to reduce that permitted withdrawal to zero.
Vote and eligibility: The extraordinary meeting is scheduled for November 13, 2026, at 10:00 a.m. Eastern time. Only holders of ordinary shares as of the close of business on October 13, 2026, may vote.

What changes for investors

The revised contribution schedule sets the sponsor’s trust-account payments at fixed dollar amounts, rather than making them depend on how many public shares remain after redemptions. Removing the liquidation-expense withdrawal also means the company would no longer be permitted to use up to $100,000 of trust interest for that purpose if it winds down without completing a business combination.

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