Iron Horse Acquisitions Corp. Reports $1.38M Net Income and Enters Business Combination Agreement

Iron Horse Acquisitions Corp. reported a net income of $1.38 million for the fiscal year ending December 31, 2024, a significant turnaround from a net loss of $308,792 in the previous year. The company generated total revenues of $3.83 million, primarily from interest earned on marketable securities held in its trust account, which amounted to $72.75 million as of December 31, 2024. This reflects an increase from $69 million in the prior year. The company’s operational costs rose to $1.71 million, up from $309,018 in 2023, largely due to increased expenses associated with its ongoing search for a business combination.

In a strategic move, Iron Horse entered into a Business Combination Agreement on September 29, 2024, with Rosy Sea Holdings Limited to acquire Zhong Guo Liang Tou Group Limited. This agreement was amended on December 18, 2024, and is expected to result in the issuance of between 40.99 million and 47.89 million shares of common stock to the seller, depending on shareholder redemptions. The company plans to change its name to CN Healthy Food Tech Group Corp. following the completion of the acquisition. The board of directors has unanimously approved the agreement and is seeking stockholder approval.

Operationally, Iron Horse has maintained a lean structure, with only two executive officers and no full-time employees prior to the business combination. The company’s cash position outside the trust account was minimal at $454, indicating a reliance on the trust account for funding future operations. As of February 21, 2025, the company had 8.87 million shares of common stock outstanding, with a market value of approximately $69.41 million held by non-affiliates.

The company has faced challenges, including a working capital deficit of $2.55 million as of December 31, 2024, raising concerns about its ability to continue as a going concern. Iron Horse has until March 29, 2025, to complete its initial business combination, with a potential extension to June 29, 2025. If the business combination is not completed by this deadline, the company will be required to liquidate and dissolve. Management is actively pursuing the acquisition to avoid this outcome.

Looking ahead, Iron Horse remains focused on finalizing the business combination and leveraging its trust account funds to support the transaction. The company has indicated that it may need to raise additional funds to meet operational expenditures and complete the acquisition, highlighting the importance of shareholder support in the upcoming vote on the business combination agreement.