Rising Dragon Issues $100k in Notes to Push SPAC Deal Deadline to Mid‑May 2026

Special purpose acquisition companies (SPACs) raise capital via an IPO and place the proceeds in a trust account while searching for a target business. The trust must fund a business combination within a set window, usually 18‑24 months, or the money is returned to investors. Extending that window often requires additional financing, a shareholder vote, or both, and can affect the trust’s net asset value per share.

On April 15, 2026, RDAC issued two unsecured promissory notes, each with a principal of $50,000, to its sponsor Aurora Beacon LLC and to SZG Limited, a designee of HZJL Cayman Limited. The notes bear no interest and mature when the company closes its initial business combination. RDAC deposited the $100,000 proceeds into its trust account, pushing the combination deadline from the original date to May 15, 2026. Each note may be converted into units identical to those sold in the SPAC’s IPO at a conversion price of $10.00 per unit, meaning the notes could become up to 10,000 shares if fully converted.

The notes give the sponsor a low‑cost mechanism to keep the SPAC alive without triggering a shareholder vote, as the funds are added directly to the trust. For investors, the conversion feature creates potential dilution if the notes are exchanged for shares, but the small size of the issuance limits any immediate impact on net asset value. The move signals that the sponsor is still seeking a suitable target and prefers to avoid the cost and uncertainty of a formal deadline extension vote.