Company: LEGT
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001829126-25-001098
Chunk: 408

Company: Legato Merger Corp. III
Filing Date: 2025-02-19
Form: 10-K
Item: Item 3
Chunk 408
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 credit losses.

Management does not believe that any other recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements.

Related Party Transactions

Founder Shares

In November 2023, the Company issued an aggregate of 5,031,250 founder share for an aggregate purchase price of $25,000, to cover legal expenses of the Company. The founder shares included an aggregate of up to 656,250 shares subject to forfeiture by the holders to the extent that the over-allotment in the IPO was not exercised in full or in part, so that the holders would collectively own 20% of the Company’s issued and outstanding shares after the IPO (assuming the holders did not purchase any units in the IPO and excluding the representative founder shares and shares underlying the Private Placement Units. On February 6, 2024, the underwriters exercised the over-allotment option in full and accordingly none of the founder shares continue to be subject to forfeiture.

The holders of the founder shares have agreed not to transfer, assign or sell any of the founder shares (except to certain permitted transferees) until (i) the earlier of 180 days after the completion of a business combination and the date on which the closing price of the ordinary shares equals or exceeds $12.50 per share (as adjusted for share splits, share capitalizations, reorganizations and recapitalizations) for any 20 trading days within any 30-trading day period commencing after a business combination and (ii) if, subsequent to a business combination, the Company completes a liquidation, merger, share exchange or other similar transaction which results in all of the Company’s shareholders having the right to exchange their ordinary shares for cash, securities or other property.

Administrative Service Fee

The Company presently occupies office space provided by an entity controlled by Crescendo Advisors II, LLC. Such entity agreed that until the Company consummates a business combination, it will make such office space, as well as general and administrative services including utilities and administrative support, available to the Company as may be required by the Company from time to time. The Company has agreed to pay an aggregate of $20,000 per month to Crescendo Advisors II, LLC, an entity controlled by a related party for such services commencing on the effective date of the IPO. For the year ended November 30, 2024, the Company incurred and paid the affiliate $215,172.

Note — Related Party

On