Company: EMCRF
Filing Date: 2025-12-10
Form Type: 10-Q
Source: 0001493152-25-027065
Chunk: 69

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-12-10
Form: 10-Q
Item: Part I, Item 8
Chunk 69
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’s CFO. The Convertible Promissory Notes bear no interest
and are repayable in full upon the consummation of the Company’s Business Combination. They are convertible at the Sponsor’s
or CFO’s election upon the consummation of the Company’s Business Combination. Upon such election, the notes will convert,
at a price of $10.00 per unit, into units identical to the private placement units issued in connection with the Company’s Initial
Public Offering.

From
January 1, 2024 to December 31, 2024, the Company issued five unsecured promissory notes (together with the convertible promissory notes
as described above, were called “Convertible Promissory Notes”) amounting to $100,000, $100,000, $100,000, $70,000 and $81,000,
respectively, for an aggregated of $451,000, to the Company’s CFO. The Convertible Promissory Notes bear no interest and are repayable
in full upon the consummation of the Company’s Business Combination. They are convertible at the CFO’s election upon the
consummation of the Company’s Business Combination. Upon such election, the notes will convert, at a price of $10.00 per unit,
into units identical to the private placement units issued in connection with the Company’s Initial Public Offering.

As
of September 30, 2025 and December 31, 2024, the Company has borrowed $851,112 under the Convertible Promissory Notes, of which $841,112
was issued to the Company’s CFO, and $10,000 was issued to the Sponsor.

Working
Capital Loans

In
order to finance transaction costs in connection with a Business Combination, the Company’s Sponsor or an affiliate of the Sponsor,
or the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working
Capital Loans”). Such Working Capital Loans would be evidenced by promissory notes. The notes would either be repaid upon consummation
of a Business Combination, without interest, or, at the lender’s discretion, up to $500,000 of notes may be converted upon consummation
of a Business Combination into additional Private Units at a price of $10.00 per Unit. In the event that a Business Combination does
not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans,