Company: MCGAU
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001104659-25-112474
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Company: Yorkville Acquisition Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 1A
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Item 1A. Risk Factors.

In addition to the other information set forth in this report, you should carefully consider the factors discussed in the Risk Factors section of the final prospectus in connection with the Initial Public Offering filed with the SEC on June 30, 2025, which could materially affect our business, financial condition or future results.

In light of our entry into a Business Combination Agreement during the quarter, you should also consider the transaction‑specific risks associated with the proposed Business Combination and related transactions.

Risks Related to the Business and Strategy of the Combined Company

Cronos tokens are not currently used in an operating business, which makes it difficult to evaluate the combined company’s business and future prospects, and the combined company may not be able to achieve or maintain profitability in any given period.

The Company was formed as a blank check company incorporated as a Cayman Islands exempted company with limited liability on March 3, 2025 and, subject to the conditions of the Business Combination Agreement, will domesticate into a Florida corporation at least two business days before the closing of the Business Combination. The Company has no operating history, and the volatile nature of the market price of Cronos (“CRO”), which will constitute a substantial portion of our assets, creates significant uncertainty and makes it difficult to evaluate our future prospects. The absence of a predecessor business in this transaction will also make it difficult to accurately forecast the future results of operations, which is subject to a number of uncertainties including the combined company’s ability to grow its CRO reserves per share (i.e., the amount of CRO per each fully diluted share), CRO generation per share (i.e., the incremental CRO generated per share over a certain time period) and external delegation to validator (i.e., the total CRO delegated by third-party holders to the combined company’s validator), and the market size and growth opportunities in each of the combined company’s anticipated lines of business.

We cannot guarantee the combined company’s ability to raise additional capital, or to raise additional capital on favorable terms, which may adversely impact our business and initial business strategy. See “The combined company’s ability to timely raise capital in the future may be limited, or may be unavailable on acceptable terms, if at all. the combined company’s failure to raise capital when needed could harm its business, operating results and financial condition.”

Our ability to generate cash flow initially will largely be dependent on the combined company’s ability to raise capital to acquire additional CRO, to access and acquire CRO not