Company: COOT
Filing Date: 2025-04-15
Form Type: S-1
Source: 0001641172-25-004895
Chunk: 141

Company: Australian Oilseeds Holdings Ltd
Filing Date: 2025-04-15
Form: S-1
Chunk 141
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 SPAC does not meet the definition of a business under the guidance of IFRS 3, hence the Transaction was accounted for as a recapitalization in accordance with IFRS 2. Under this method of accounting, EDOC is treated as the acquired company and Australian Oilseeds Investments Pty Ltd. is treated as the acquirer for financial statement reporting purposes. Australian Oilseeds Investments Pty Ltd. has been determined to be the accounting acquirer based on evaluation of the facts and circumstances of the business combination.

Entities involved in SPAC mergers need to determine which entity is the predecessor whose financial statements will become the historical financial statements of the combined company. The determination of which entity is the predecessor and successor in the merger transaction is separate from the determination of which entity is the accounting acquirer. Regulation C, Rule 405 defines a predecessor as “a person the major portion of the business and assets of which another person acquired in a single succession, or in a series of related successions in each of which the acquiring person acquired the major portion of the business and assets of the acquired person”. SPACs are blank-check companies whose sole purpose is to acquire a target or targets with the capital raised from their IPO. Given that EDOC did not have any significant activities, EDOC’s own operations before the succession are insignificant relative to the operations of AOI. For example, EDOC’s financial statements do not report any significant revenues other than investment income on assets held in trust. Additionally, AOI’s total assets of approximately AUD$ 32million at closing, March 21, 2024, were significantly greater than EDOC’s total assets of approximately AUD$ 0.01million, excluding the Trust account. Lastly, AOI management’s team has continued as the management of the combined entities. As such, AOI was considered the predecessor entity for purposes of these financial statements.

The consolidated financial statements of the merged company will represent a continuation of the financial statements of Australian Oilseeds Investments Pty Ltd., the principles and guidance on the preparation and presentation of the consolidated financial statements will be applied as follows:

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 share based payment transaction arises whereby Australian Oilseeds Investments Pty Ltd. is     
 deemed to have issued shares in exchange for the net assets of EDOC (together with the listing 
 status of Australian Oilseeds Investments Pty Ltd). The listing status does not qualify for    
 recognition as an intangible asset and the relevant costs will therefore be expensed as a      
 listing expense.                                                                               |