Cactus Acquisition Corp. Reports Increased Net Loss and Strategic Shift in Focus

Cactus Acquisition Corp. 1 Limited reported its financial results for the six months ending June 30, 2025, revealing a net loss of $160,000, compared to a net loss of $90,000 for the same period in 2024. The company generated interest income of $188,000 from marketable securities held in its trust account, a significant increase from $93,000 in the prior year. Operating expenses decreased to $286,000 from $542,000, while financial expenses also saw a reduction, totaling $62,000 compared to $105,000 in the previous year. The weighted average of Class A ordinary shares subject to possible redemption was 763,592, down from 1,912,371 in the prior year.

In terms of balance sheet performance, total assets increased slightly to $9.281 million as of June 30, 2025, from $9.184 million at the end of 2024. Cash held in the trust account rose to $9.168 million from $8.980 million, indicating a stable liquidity position. However, total current liabilities also increased to $2.530 million from $2.273 million, primarily due to a rise in accrued expenses and other liabilities. The company’s accumulated deficit grew to $2.514 million from $2.354 million, reflecting ongoing operational challenges.

Strategically, Cactus Acquisition Corp. has undergone significant changes in its sponsorship structure. The original sponsor, Cactus Healthcare Management LP, transferred 80% of its equity to EVGI Ltd. on February 23, 2024, and subsequently, EVGI transferred its entire stake to ARWM Inc. Pte. Ltd. on May 16, 2024. This shift in sponsorship has led the company to broaden its focus from technology-based healthcare businesses in Israel to emerging technology companies globally, particularly in the energy renewables sector.

Operationally, the company has maintained a consistent number of shares outstanding, with 3,162,499 Class A ordinary shares and one Class B ordinary share issued and outstanding as of June 30, 2025. The company continues to explore potential business combinations, with a focus on identifying targets that align with its new strategic direction. The trust account remains a critical component of its financial strategy, as it holds proceeds from the initial public offering, which are invested in money market funds.

Looking ahead, Cactus Acquisition Corp. expressed optimism regarding its ability to consummate a business combination with Tembo e-LV B.V., as outlined in the Business Combination Agreement signed on August 29, 2024. The company anticipates that this transaction will enhance its financial and operational performance, contingent upon obtaining necessary shareholder and regulatory approvals. The management team remains focused on navigating the complexities of the current market environment while pursuing growth opportunities in the renewable energy sector.