Company: EMCRF
Filing Date: 2025-12-10
Form Type: 10-Q
Source: 0001493152-25-027065
Chunk: 31

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-12-10
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 current registration statement in effect with respect to the ordinary share underlying such warrants at the
    time of redemption and for the entire 30-day trading period referred to above and continuing each day thereafter until the date of
    redemption.

The
Private Warrants (including the ordinary shares issuable upon exercise of the private warrants) will not be transferable, assignable
or salable until 30 days after the completion of our Business Combination and they will not be redeemable by the Company so long as they
are held by the initial shareholders or their permitted transferees. The initial shareholders, or their permitted transferees, have the
option to exercise the Private Warrants on a cashless basis.

If
the Company calls the Warrants for redemption, management will have the option to require all holders that wish to exercise the Warrants
to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of ordinary share issuable
upon exercise of the Warrants may be adjusted in certain circumstances including in the event of a stock dividend, extraordinary dividend
or recapitalization, reorganization, merger, or consolidation. However, the Warrants will not be adjusted for issuances of ordinary share
at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Warrants. If the Company
is unable to complete a Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account,
holders of Warrants will not receive any of such funds with respect to their Warrants, nor will they receive any distribution from the
Company’s assets held outside of the Trust Account with respect to such Warrants. Accordingly, the Warrants may expire worthless.

The
Company accounts for 7,766,605 Warrants issued in connection with the Initial Public Offering (comprised of 7,392,855 Public Warrants
and 373,750 Private Warrants) (the “Warrants”) in accordance with the guidance contained in ASC 815-40 Derivatives and Hedging
- Contracts in Entity’s Own Equity (“ASC 815”) under which the Warrants meet the criteria for equity treatment and
was recorded as a component of additional paid-in capital at the time of issuance.

Rights
— Each holder of a right will receive one-eighth (1/8) of one ordinary share upon consummation of a Business Combination, even
if the holder of such right redeemed all shares held by