Company: EMCRF
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001829126-25-003812
Chunk: 65

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 65
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 Business Combination. Notwithstanding anything to the contrary, any holder that is affiliated with an underwriter participating in the Company’s IPO may only make a demand on one occasion and only during the five-year period beginning on the effective date of the registration statement. In addition, the holders have certain “piggy-back” registration rights on registration statements filed after the Company’s consummation of a business combination; provided that any holder that is affiliated with an underwriter participating in the Company’s IPO may participate in a “piggy-back” registration only during the seven-year period beginning on the effective date of the registration statement.

The underwriters purchased the 892,855 of additional Units to cover over-allotments, less the underwriting discounts and commissions.

The underwriters were entitled to a cash
underwriting discount of one percent (1.00%)
of the gross proceeds of the Offering, or $739,286
as the underwriters’ over-allotment is partially exercised. The underwriters are also entitled to a deferred fee of three
point five percent (3.50%)
of the gross proceeds of the Offering, or $2,587,499
as the underwriters’ over-allotment is partially exercised upon closing of the Business Combination. On March 4, 2024,
the Company and D. Boral Capital (“D. Boral”), formerly known as EF Hutton, division of Benchmark Investments, LLC, the
underwriter of Company’s IPO, entered into a satisfaction and discharge of indebtedness pursuant to underwriting agreement
dated August 9, 2022 (the “Satisfaction and Discharge Agreement”), pursuant to which, the underwriter agrees to
revise the deferred underwriting fee of $2,587,499,
to (1) $750,000
in cash on the date of the closing of the initial business combination (the “Closing”) and (2) 200,000
of registered and unrestricted shares of the Company (the “Granted Shares”), shall be issued and delivered to the underwriter at the Closing. The deferred
fee will be paid in cash upon the closing of a Business Combination from the amounts held in the Trust Account, subject to the terms
of the underwriting agreement. The Company evaluated the Satisfaction and Discharge Agreement and concluded that the share
settlement portion of the Satisfaction and Discharge Agreement is representative of a share-based payment transaction in which the
Company is acquiring services to be used within the Company’s operations and upon settlement agreeing to