Company: CHPG
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001213900-25-111468
Chunk: 37

Company: ChampionsGate Acquisition Corp
Filing Date: 2025-11-17
Form: 10-Q
Item: Part I, Item 1
Chunk 37
---
 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, the Sponsor HoldCo, the 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. The promissory note 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 promissory 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 convert at least two business
days prior to the closing of the Initial Business Combination. The number of Private Placement Units to be received by the Sponsor HoldCo
in connection with such conversion shall be an amount determined by dividing (x) the sum of the outstanding principal amount payable to
the Sponsor HoldCo by (y) $10.00.

Up to $1,500,000 of the loans (the “Cap”)
made by our Sponsor HoldCo, sponsor, our officers and directors, or our or their affiliates to the Company prior to or in connection with
our initial business combination may be convertible into units, at a price of $10.00 per unit at the option of the lender, upon consummation
of our initial business combination. The units would be identical to the placement units. The terms of such loans by our officers and
directors, if any, have not been determined and no written agreements exist with