Rising Dragon Acquisition has secured $55,637.41 in interest-free loans to fund an extension of the time it has to complete a business combination, through November 15, 2026. The money comes from both the sponsor and a designee of HZJL Cayman, the counterparty to Rising Dragon’s proposed merger agreement.
The loans support the existing transaction process; they do not announce that the merger has closed or change its terms.
Key details
- Aurora Beacon LLC, Rising Dragon’s sponsor, provided $44,448.73. SZG Limited, acting for HZJL Cayman, provided $11,188.68.
- The proceeds were deposited in Rising Dragon’s trust account in connection with extending its business-combination deadline to November 15, 2026.
- Neither loan bears interest. Both are payable when Rising Dragon completes its initial business combination.
- Each lender may choose to convert all or part of its loan into Rising Dragon private units at $10 per unit. The lender must give written notice at least five business days before the transaction closes.
- The SZG loan has additional cancellation terms: it is extinguished if Rising Dragon terminates the merger agreement under a specified provision, if the transaction fails to close by the agreement’s deadline for reasons not attributable to Rising Dragon, or if the parties mutually terminate the agreement.
What changes
The loans provide funds for the extension while adding no interest expense. If the lenders do not convert, the amounts become payable when a business combination closes. If they convert, the corresponding debt is exchanged for private units rather than repaid in cash.