Company: CHPG
Filing Date: 2025-07-07
Form Type: 10-Q
Source: 0001213900-25-061810
Chunk: 63

Company: ChampionsGate Acquisition Corp
Filing Date: 2025-07-07
Form: 10-Q
Item: Part I, Item 8
Chunk 63
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mated IPO of
7,475,000 Units, including the full exercise of the underwriter’s option to purchase an additional 975,000 Units to cover over-allotments.
 Each Unit consists of one Class A ordinary share, $0.0001 par value per share (each, a “Class A ordinary share”), and
one right (each, a “Right”), each one Right entitling the holder thereof to exchange for one-eighth of one Class A ordinary
share upon the completion of the Company’s initial business combination. The Units were sold at an offering price of $10.00 per
Unit, generating gross proceeds of $74,750,000.

The public Rights will be classified within shareholders’
deficit and will not require remeasurement after issuance. The public Rights will be classified within Level 3 of the fair value hierarchy
at the measurement dates due to the use of unobservable inputs inherent in assumptions related to the market adjustments as noted below.
The following table presents the quantitative information regarding market assumptions used in the valuation of the public Rights:

    May 29, 2025 
  
    Unit value 
    $10.00 
  
    Share price 
    $9.67 
  
    Conversion ratio 
     12.5%
  
    Probability of De-SPAC 
     30.0%
  
    Discount of lack of marketability (DLOM) 
     2.0%
  
    Fair value of each right 
    $0.33 

Substantially concurrently with the closing of
the IPO, the Company completed the private sale (the “Private Placement”) of 230,000 units (the “Private Units”)
to Sponsor HoldCo. Each Private Unit consists of one Class A ordinary share and one right. The Private Units were sold at a purchase price
of $10.00 per Private Unit, generating gross proceeds to the Company of $2,300,000.

In connection with the consummation of the IPO
and the Private Placement, the proceeds of $75,123,750 ($10.05 per Unit) from the proceeds of the IPO and the Private Placement were placed
in the trust account established for the benefit of the Company’s public shareholders and the underwriters of the IPO with Continental
Stock Transfer & Trust Company acting as trustee.

Concurrent with the offering, the Sponsor transferred
an aggregate of 60,000 of its Class B insider shares, or 20,000 each to its