Company: EMCRF
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001829126-25-003812
Chunk: 21

Company: Embrace Change Acquisition Corp.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 placement (“Private Placement”) with the Sponsor of 373,750 units (the “Private Units”), generating total proceeds of $3,737,500.

The proceeds from the sale of the Private Units
were added to the net proceeds from the Offering held in the Trust Account. The Private Units are identical to the Units sold in the
Initial Public Offering, except there will be no redemption rights or liquidating distributions from the Company’s trust account
with respect to the private shares, which will expire worthless if the Company does not consummate a business combination. With respect
to the Private Warrants, as described in Note 7, the warrant agent shall not register any transfer of Private Warrants until after the
consummation of an initial business. If the Company does not complete a Business Combination within the Combination Period, the proceeds
from the sale of the Private Units will be used to fund the redemption of the Public Shares (subject to the requirements of applicable
law) and the Private Warrants will expire worthless.

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NOTE 5. RELATED PARTY TRANSACTIONS

Founder Shares

During the period ended December 31, 2021,
the Company issued an aggregate of 2,156,250
shares of Ordinary shares to the Sponsor for an aggregate purchase price of $25,000
in cash. On July 1, 2022, the sponsor surrendered an aggregate of 287,500
founder shares for no consideration, which surrender was effective retroactively, resulting in 1,868,750
shares being outstanding. On August 12, 2022, as a result of the partial exercise of the Representative’s Over-Allotment
Option, an aggregate of 20,536
founder shares were further forfeited to the Company, which surrender was effective retroactively and resulting in 1,848,214
shares being outstanding, so that the Sponsor will collectively own 20%
of the Company’s issued and outstanding shares after the IPO (assuming the initial shareholders do not purchase any Public
Shares in the IPO and excluding the Private Units and underlying securities).

Subject to certain limited exceptions, the initial shareholders have agreed not to transfer, assign or sell their founder shares until six months after the date of the consummation of the Company’s Business Combination or earlier if, subsequent to Business Combination, the Company consummate a subsequent liquidation, merger, stock exchange or other similar transaction which results in all of the shareholders having the right to exchange their ordinary shares for cash, securities or