Company: CHPG
Filing Date: 2025-07-07
Form Type: 10-Q
Source: 0001213900-25-061810
Chunk: 22

Company: ChampionsGate Acquisition Corp
Filing Date: 2025-07-07
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 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 three independent directors for their board service, for nominal
cash consideration, of $696. The fair value of these 60,000 shares transferred on the grant date was $156,600 or $2.61 per share per valuation
performed by a third-party specialist. On May 29, 2025, the Company recognized a share-based compensation expense of $155,904, net of
the nominal cash consideration of $696 paid by the directors. The Company accounted for the transfer under ASC 718 stock compensation
(See Note 2 for details).

The share price was calculated using a scenario-based
method, incorporating probabilities of both a de-SPAC and an IPO, with the total Unit value reaching $10 and the Right valued at one-eighth
of the share price. Based on these probabilities, an indicated per share marketable value for the Founders Shares was determined, and
a discount for lack of marketability, derived from the