Company: EMCRF
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001829126-25-003812
Chunk: 69

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 69
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arrants”) 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 it in connection with a Business Combination. No fractional shares will be issued upon exchange of the rights. No
additional consideration will be required to be paid by a holder of rights in order to receive its additional shares upon consummation
of a Business Combination as the consideration related thereto has been included in the unit purchase price paid for by investors in
the IPO. If the Company enters into a definitive agreement for a Business Combination in which the Company will not be the surviving
entity, the definitive agreement will provide for the holders of rights to receive the same per share consideration the holders of the
ordinary share will receive in the transaction on an as- converted into ordinary share basis and each holder of a right will be required
to affirmatively convert its rights in order to receive 1/8 share underlying each right (without paying additional consideration). The
shares issuable upon exchange of the rights will be freely tradable (except to the extent held by affiliates of the Company).

Additionally, in no event will the Company be required to net cash settle the rights. 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 rights will not receive any of such funds with respect to their rights, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with respect to such rights. Accordingly, the rights may expire worthless.

NOTE 10. SUBSEQUENT EVENTS

Subsequent to March 31, 2025, the Company
received an aggregated amount of $100,000
from Tianji and its subsidiaries. These amounts are unsecured, non-interest bearing and due on demand. Up to the date the unaudited
interim consolidated financial statements were issued, the Company received $1,075,000
in total, from Tianji and its subsidiaries.

On May 8, 2025, the Company deposited $75,000
into the Trust Account. There have been deposits of $150