Company: IBACR
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010982
Chunk: 58

Company: IB Acquisition Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 58
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 connection with the filing of any such registration statements.

Underwriting
Agreement and Business Combination Marketing Agreement

The
Company engaged I-Bankers to act as Underwriters on the Initial Public Offering of the Company’s Units, for $115,000,000 and the
simultaneous listing on the Nasdaq Global Market. The Underwriters had a 30-day option to purchase up to an additional 1,500,000 Units
to cover over-allotments at the Initial Public Offering price, less the underwriting discounts and commissions. On March 28, 2024, simultaneously
with the closing of the Initial Public Offering, the Underwriters elected to fully exercise the over-allotment option to purchase an
additional 1,500,000 Units at a price of $10.00 per Unit.

The
Underwriters were entitled to a cash underwriting discount of $0.30 per Unit, or $3,450,000 in the aggregate, paid upon the closing of
the Initial Public Offering. In addition, under a business combination marketing agreement, the Company engaged I-Bankers to provide
marketing services in connection with the Business Combination and will pay I-Bankers a cash fee for such marketing services upon the
consummation of the Business Combination in an amount equal to, in the aggregate, 3.5% of the gross proceeds of the Initial Public Offering
(the “M&A fee”) or $4,025,000 in the aggregate. If the Company doesn’t complete a business combination, no fee
will be due. In addition, the Company will pay the I-Bankers a finder fee equal to 1.0% of the consideration issued to a target if the
business combination is consummated with a target introduced by the I-Bankers.

On
the closing of the Initial Public Offering, pursuant to the underwriting agreement, the Company issued as compensation 395,000 shares
of common stock for no cash consideration (the “Representative Shares”).

Working
Capital Loan

On
September 16, 2024, the Company issued an unsecured promissory note in the principal amount of $150,000 to Su De Tang Global Corporation
(the “Working Capital Loan”). The principal balance of this Promissory Note represents the first of potentially three instalments
of the Working Capital Loan. The Working Capital Loan bears no interest and will be extinguished without any payment required at the
consummation of a Business Combination with Su De Tang