Cal Redwood Acquisition Corp. Reports Q1 2025 Financial Results and IPO Completion

Cal Redwood Acquisition Corp. has reported its financial results for the quarter ending March 31, 2025, following its incorporation on January 7, 2025. The company, which is classified as a blank check company, recorded a net loss of $42,822 during this period, primarily due to general and administrative expenses. The loss translates to a basic and diluted net loss per share of $0.01, based on a weighted average of 6,666,000 Class B ordinary shares outstanding. As of March 31, 2025, the company had cash reserves of $25,000 and a working capital deficit of $204,206.

In a significant development, Cal Redwood Acquisition Corp. successfully completed its Initial Public Offering (IPO) on May 27, 2025, raising gross proceeds of $230 million by selling 23 million units at $10.00 each. This figure includes the full exercise of the underwriters' over-allotment option, which accounted for an additional 3 million units. The IPO proceeds are intended to be utilized primarily for the purpose of executing a business combination, with the company holding these funds in a trust account. The company also raised an additional $6.6 million through the sale of 660,000 private placement units to its sponsor and underwriters.

The company has not yet engaged in any substantive operations or identified a specific target for its business combination. All activities to date have been related to its formation and preparation for the IPO. The management has indicated that it does not expect to generate operating revenues until after the completion of a business combination. The company’s management team has broad discretion regarding the application of the IPO proceeds, although it is expected that most will be directed toward the business combination.

As of the end of the reporting period, Cal Redwood Acquisition Corp. had 23,660,000 Class A ordinary shares and 7,665,900 Class B ordinary shares issued and outstanding. The company is classified as a smaller reporting company and an emerging growth company, which allows it to take advantage of certain exemptions from various reporting requirements. The management has expressed confidence in the company’s ability to meet its operational needs without requiring additional funding prior to the business combination, although it acknowledges the potential need for further financing depending on the circumstances surrounding the business combination.

Looking ahead, Cal Redwood Acquisition Corp. is focused on identifying a suitable target for its business combination, with management emphasizing the importance of thorough due diligence and strategic planning. The company remains aware of the current geopolitical and economic conditions that could impact its operations and the broader market environment, which may influence its search for a target business.