Company: FSHPU
Filing Date: 2025-03-04
Form Type: 10-K
Source: 0001829126-25-001450
Chunk: 55

Company: Flag Ship Acquisition Corp
Filing Date: 2025-03-04
Form: 10-K
Item: Item 1
Chunk 55
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 will be limited by our available financial resources. This inherent competitive limitation gives others an advantage in pursuing the acquisition of certain target businesses. Furthermore, if we are obligated to pay cash for the ordinary shares redeemed and, in the event we seek shareholder approval of our initial business combination, we make purchases of our ordinary shares, potentially reducing the resources available to us for our initial business combination. Any of these obligations may place us at a competitive disadvantage in successfully negotiating a business combination. If we are unable to complete our initial business combination, our public shareholders may receive only the redemption price held in the trust account on pro-rata basis, which is initially approximately $10.00 per share (or less in certain circumstances) on the liquidation of our trust account and our rights will expire worthless. In certain circumstances, our public shareholders may receive less than such redemption price.

If the net proceeds of the IPO and the sale of the private placement units not being held in the trust account are insufficient, it could limit the amount available to fund our search for a target business or businesses and complete our initial business combination and we will depend on loans from our sponsor or management team to fund our search, to pay our taxes and to complete our initial business combination.

Of the net proceeds of the
IPO and the sale of the private placement units and after payment of estimated offering expenses, only approximately $500,000 was
available to us initially outside the trust account to fund our working capital requirements. On August 30, 2024, we issued an
unsecured promissory note (the “2024 Note”) in the principal amount of up to $1,000,000 to our Sponsor pursuant to which
we may borrow funds. The 2024 Note bears no interest and is due on the earlier of: (i) December 31, 2025 or (ii) the date on which
we consummate our initial business combination. As of December 31, 2024, there was $677,851 outstanding under the 2024 Note. If we
are required to seek additional capital, we would need to borrow additional funds from our sponsor, management team or other third
parties to operate or may be forced to liquidate. Neither our sponsor, members of our management team nor any of their affiliates is
under any obligation to advance funds to us in such circumstances. Any such advances would be repaid only from funds held outside
the trust account or from funds released to us upon completion of our initial business combination. If