Company: YCY-WT
Filing Date: 2025-08-22
Form Type: S-1
Source: 0001213900-25-079440
Chunk: 117

Company: AA Mission Acquisition Corp. II
Filing Date: 2025-08-22
Form: S-1
Chunk 117
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 the foregoing, those special purpose acquisition companies should be considered investment companies. Although we believe that these claims are without merit, we cannot guarantee that we will not be deemed to be an unregistered investment company and thus subject to the Investment Company Act. If we were deemed to be subject to the Investment Company Act, compliance with these additional regulatory burdens would require additional expenses for which we have not allotted funds and may hinder our ability to complete an initial business combination or may result in our liquidation. On January 24, 2024, the SEC adopted the previously proposed rules (the “SPAC Rules”) relating to, among other items, disclosures in business combination transactions involving SPACs and private operating companies; the condensed financial statement requirements applicable to transactions involving shell companies; the use of projections by SPACs in SEC filings in connection with proposed business combination transactions; and the potential liability of certain participants in proposed business combination transactions. The SEC declined to adopt a proposed rule under the Investment Company Act which would have provided a safe harbor for SPACs from the definition of “investment company” under Section 3(a)(1)(A) of the Investment Company Act. The SEC provided guidance on the considerations that it believes are relevant to determining whether a SPAC meets the definition of “investment company,” that investment company status is a question of facts and circumstances and that a SPAC could be an investment company at any stage of its operations. The SEC emphasized that departures from (i) the one -yeargrace period provided to issuers in Rule 3a -2under the Investment Company Act and (ii) the 18 -monthperiod permitted for blank check companies under Rule 419 under the Securities Act increased concerns that a SPAC may be considered an investment company for purposed of the Investment Company Act. If our facts and circumstances change over time, we will update our disclosure to reflect how those changes impact the risk of being considered as operating an investment company. 71 If we were deemed to be an investment company for purposes of the Investment Company Act, we may have to change our operations, wind down our operations, or register as an investment company under the Investment Company Act. Compliance with the additional regulatory burdens required under the Investment Company Act would require additional expenses for which we have not allotted funds and could increase the costs and time needed to complete a business combination or impair our ability to complete a business combination. If we have not completed our initial business combination within the required time period, our public shareholders may receive only approximately $10.025