Evergreen Corporation Reports Decrease in Net Income and Progress on Merger with Forekast Limited

Evergreen Corporation (EVGR), a blank check company incorporated in the Cayman Islands, reported a net income of $1.77 million for the fiscal year ending November 30, 2024, a decrease from the previous year's net income of $3.67 million. The decline in profitability is attributed to a reduction in interest income from investments held in trust accounts, which fell from $5.02 million in 2023 to $3.47 million in 2024. Operating costs also increased, totaling $1.70 million in 2024 compared to $1.34 million in the prior year, reflecting ongoing expenses related to the pursuit of a business combination.

In terms of financial position, Evergreen's total assets included approximately $55.41 million held in trust accounts as of November 30, 2024. The company has faced challenges in maintaining liquidity, with only $4,553 in cash outside of the trust accounts and a working capital deficit of $6.83 million. The company has issued several unsecured promissory notes to its sponsor, totaling $6.42 million, to fund operational needs and extend the timeline for completing a business combination.

Strategically, Evergreen has made significant progress in its merger plans. On September 5, 2024, the company entered into a merger agreement with Forekast Limited, which will involve a two-step business combination process. This merger is valued at $105 million and will result in Forekast becoming a wholly-owned subsidiary of Evergreen's newly formed entity, PubCo. The merger is expected to enhance Evergreen's market position and operational capabilities in the vision sensing technologies sector.

Operationally, Evergreen has seen fluctuations in shareholder engagement, with significant redemptions occurring during extraordinary general meetings. In May 2024, shareholders redeemed approximately 2.83 million ordinary shares, and in January 2025, an additional 2.46 million shares were redeemed. These redemptions have impacted the number of Class A ordinary shares outstanding, which decreased to 2.21 million following the latest redemptions. The company has also extended its business combination deadline multiple times, with the latest extension allowing until August 11, 2025, to complete the merger.

Looking ahead, Evergreen's management has expressed uncertainty regarding its ability to continue as a going concern, primarily due to the need for additional financing to complete the business combination and cover operational costs. The company is actively seeking to raise capital and finalize the merger with Forekast, which is anticipated to provide a pathway to future growth and revenue generation. However, the ongoing challenges related to liquidity and market conditions remain critical factors that could influence the company's operational viability.