Spring Valley Acquisition Corp. II Reports Q1 2025 Financial Results with Net Loss of $476,300

Spring Valley Acquisition Corp. II reported its financial results for the first quarter of 2025, revealing a net loss of approximately $476,300, a significant decline from a net income of $1,979,098 in the same period of the previous year. The company’s revenue primarily stemmed from interest income on investments held in its Trust Account, which amounted to $267,593, down from $2,214,919 in the prior year. General and administrative expenses decreased to $172,492 from $250,293, reflecting cost-cutting measures as the company continues its search for a suitable business combination.

As of March 31, 2025, Spring Valley Acquisition Corp. II reported total assets of $26.2 million, a slight increase from $26.1 million at the end of 2024. The company’s cash and investments held in the Trust Account rose to $25.8 million, compared to $25.6 million at the end of the previous year. However, the company’s cash outside the Trust Account decreased to $261,747 from $495,352, indicating a tightening liquidity position. The total liabilities increased to $2.25 million, primarily due to the recognition of a non-redemption agreements derivative liability of $575,831.

In terms of operational developments, the company has not yet commenced any business operations since its inception in January 2021. All activities have focused on the formation and the initial public offering (IPO) process, which raised approximately $230 million in October 2022. The company has extended its deadline to complete a business combination to October 17, 2025, following shareholder approval for amendments to its governing documents. This extension allows the company additional time to identify and negotiate with potential acquisition targets.

The company’s shareholder base has also seen changes, with significant redemptions occurring in connection with the extension amendments. In January 2024, shareholders redeemed 8,362,234 Class A ordinary shares for approximately $90.7 million, and in November 2024, an additional 12,424,337 shares were redeemed for about $142 million. Following these transactions, 9,880,095 Class A ordinary shares remain outstanding, with approximately $25.1 million left in the Trust Account.

Looking ahead, management has expressed concerns regarding the company’s liquidity and ability to meet its working capital needs, particularly as it seeks to finalize a business combination. The company has received a commitment from its sponsor to provide up to $3.15 million in contributions to the Trust Account, which may help alleviate some immediate financial pressures. However, there is no assurance that the company will successfully complete a business combination within the extended timeframe, raising substantial doubt about its ability to continue as a going concern.