Company: CHPG
Filing Date: 2025-08-15
Form Type: 10-Q
Source: 0001213900-25-077011
Chunk: 34

Company: ChampionsGate Acquisition Corp
Filing Date: 2025-08-15
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 annual income tax obligations will depend on the amount of interest and other income earned on the amounts held in
the trust account. To the extent that our ordinary shares or debt is used, in whole or in part, as consideration to complete our initial
business combination, the remaining proceeds held in the trust account will be used as working capital to finance the operations of the
target business or businesses, make other acquisitions and pursue our growth strategies.

Prior to the completion of our initial business
combination, we will have available to us $1,500,000 of proceeds held outside the trust account. We will use these funds primarily to
identify and evaluate target businesses, perform business due diligence on prospective target businesses, travel to and from the offices,
plants or similar locations of prospective target businesses or their representatives or owners, review corporate documents and material
agreements of prospective target businesses, structure, negotiate and complete a business combination, and to pay taxes to the extent
the interest earned on the trust account is not sufficient to pay our taxes.

In order to fund working capital deficiencies
or finance transaction costs in connection with an intended initial business combination, our Sponsor HoldCo, Sponsor or their affiliates
or certain of our officers and directors may, but are not obligated to, loan us funds as may be required. If we complete our initial business
combination, we would repay such loaned amounts. In the event that our initial business combination does not close, we may use a portion
of the working capital held outside the trust account to repay such loaned amounts but no proceeds from our trust account would be used
for such repayment.

On June 26, 2025, the Company issued a promissory
note to the Sponsor HoldCo, under which the Sponsor HoldCo may loan the Company up to $500,000 to be used for a portion of the working
capital. This loan is non-interest bearing, unsecured and is due at the earlier of (1) the date on which the Company consummates its initial
business combination or (2) the date on which the Company liquidates and dissolves. The Sponsor HoldCo, as the payee, has the right, but
not the obligation, to convert the note, in whole or in part, into Private Placement Units of the Company, that are identical to the Private
Placement Units issued by the Company in the Private Placement consummated simultaneously with the Company’s IPO, subject to the
Cap described below, by providing the Company with written notice of the intention to