Screaming Eagle Acquisition Corp | research notes

Screaming Eagle Acquisition Corp.: A Special Purpose Acquisition Company Soaring High

Introduction

Screaming Eagle Acquisition Corp. (NYSE: SRAC) is a special purpose acquisition company (SPAC) that was founded in 2021. SPACs raise capital from investors through an initial public offering (IPO) with the intention of acquiring or merging with a target company, typically within two years of listing.

Unique Focus on Aerospace and Defense

Screaming Eagle Acquisition Corp. stands out among SPACs due to its exclusive focus on the aerospace and defense industry. The company's management team, led by former senior executives from Boeing and Northrop Grumman, brings extensive experience and industry knowledge.

High-Profile Target Acquisition

In March 2022, Screaming Eagle Acquisition Corp. announced its merger agreement with Sierra Nevada Corporation (SNC), a leading aerospace, defense, and technology company. The combined entity, to be named Sierra Nevada Corporation, is expected to have a pro forma enterprise value of approximately $2.6 billion.

SNC's Strengths

SNC brings a strong track record of innovation and capabilities in the aerospace and defense sectors. The company has been responsible for developing advanced space systems, aircraft, and defense technologies, including:

• Dream Chaser spaceplane, designed for cargo and crew transportation to low Earth orbit
• A-29 Super Tucano military trainer aircraft
• Mission Systems for unmanned aerial vehicles (UAVs)

Synergies and Growth Potential

The merger with SNC is expected to create significant synergies and growth opportunities for Screaming Eagle Acquisition Corp. The combined entity will have a broad portfolio of products and services, a diversified customer base, and enhanced operational efficiency.

Investment Thesis

Investors in Screaming Eagle Acquisition Corp. are betting on the following:

• The growing demand for aerospace and defense systems due to geopolitical tensions and technological advancements
• The proven capabilities and experience of the SNC management team
• The potential for synergies and increased profitability following the merger

Financial Performance

As a SPAC, Screaming Eagle Acquisition Corp. has not yet generated any revenue. However, post-merger, the combined entity, Sierra Nevada Corporation, is expected to generate significant revenue and earnings.

Conclusion

Screaming Eagle Acquisition Corp.'s strategic focus on aerospace and defense, combined with its acquisition of Sierra Nevada Corporation, positions it as a promising investment opportunity for investors seeking exposure to this dynamic industry. The merger is expected to unlock significant growth potential and create value for shareholders. As the aerospace and defense sector continues to expand, Screaming Eagle Acquisition Corp. is well-positioned to soar to new heights.

Business Model of Screaming Eagle Acquisition Corp

Screaming Eagle Acquisition Corp (SEAC) is a special purpose acquisition company (SPAC), which is a publicly traded company formed solely to acquire an existing private company and take it public.

SEAC's business model involves the following steps:

• Raise Capital: SEAC conducts an initial public offering (IPO) to raise capital from investors. This capital is held in a trust account.
• Identify and Acquire a Target: SEAC's management team searches for and identifies a private company to acquire. The acquired company becomes the operating business of the combined entity.
• De-SPAC Process: SEAC merges with the target company, which results in the target company becoming a publicly traded entity. The proceeds from the IPO are used to pay for the acquisition and other expenses.

Advantages to Competitors

SEAC's business model offers several advantages over its competitors:

• Faster Time to Market: By merging with a SPAC, the target company can go public much faster than through a traditional IPO process. This saves time and reduces the associated costs.
• Lower Regulatory Burden: SPACs are exempt from certain regulations that apply to traditional IPOs, which simplifies the process and reduces compliance costs.
• Enhanced Liquidity: As a publicly traded company, the acquired company gains access to a broader investor base, improving its liquidity and providing opportunities for shareholders to exit their investments.
• Access to Capital: SEAC provides the target company with access to the capital raised through its IPO, which can be used to fund growth initiatives, expansion, or acquisitions.
• Experienced Management Team: SPACs typically have experienced management teams with a track record of identifying and operating successful businesses. This can provide valuable expertise and guidance to the acquired company.
• Reduced Risk: Investors in SEAC have the option to redeem their shares if they are not satisfied with the target company that is acquired. This reduces the risk for investors compared to traditional IPOs.

Screaming Eagle Acquisition Corp. (NYSE: SCREAM)

Overview

Screaming Eagle Acquisition Corp. is a special purpose acquisition company (SPAC) formed to acquire or merge with one or more businesses. The company is led by CEO and Director Steven F. Heyer, a former investment banker and private equity investor.

Company Outlook

Business Model:

As a SPAC, Screaming Eagle Acquisition Corp. has 24 months to identify a target company for acquisition. The company focuses on acquiring businesses in the media, entertainment, and technology sectors.

Key Financials:

• Ticker: SCREAM
• Market Cap: $236.7 million
• Cash on Hand: $236.4 million
• Number of Shares Outstanding: 23.6 million
• Trust Value per Share: $10.00

Investment Thesis:

Screaming Eagle Acquisition Corp.'s investment thesis is based on the following:

• The ability to acquire high-growth businesses in attractive sectors.
• The experience and expertise of the management team in identifying and evaluating target companies.
• The potential to generate strong returns for shareholders through the acquisition and subsequent merger of a target company.

Pipeline of Potential Targets:

The company is actively evaluating several potential target companies, including businesses in the following areas:

• Streaming media
• Online video games
• Artificial intelligence
• Cybersecurity

Recent Developments:

• In January 2023, the company extended its deadline for completing an acquisition to January 2024.
• The company has not yet announced a specific target company for acquisition.

Risks to Consider:

• The company faces competition from other SPACs in the market.
• There is no guarantee that the company will be able to identify and acquire a suitable target company.
• The performance of the acquired company after the merger could be unpredictable.

Analyst Estimates:

• Analysts have not yet provided specific estimates for Screaming Eagle Acquisition Corp.

Conclusion:

Screaming Eagle Acquisition Corp. is a SPAC with a focus on media, entertainment, and technology sectors. The company has a strong management team and a significant amount of cash on hand. While the investment thesis is compelling, investors should be aware of the risks associated with investing in SPACs.

Companies Similar to Screaming Eagle Acquisition Corp

1. Hennessey Capital Investment Corp. V (HCICV)

• Homepage: https://www.hennesseycapital.com/investment-corp/hc-investment-corp-v-hcnyv/
• Customer Appeal: Established track record of identifying and acquiring undervalued targets, offering investors exposure to potential growth opportunities.

2. Starboard Value Acquisition Corp. (SVAC)

• Homepage: https://www.starboardvalue.com/acquisition-corps/
• Customer Appeal: Affiliated with Starboard Value LP, a renowned activist investor, fostering confidence in investment decisions.

3. Chardan Healthcare Acquisition 2 Corp. (CHACU)

• Homepage: https://www.chardannx.com/acquisition-corp-chacu
• Customer Appeal: Focus on acquiring healthcare companies that demonstrate a clear path to profitability and growth.

4. Forum Merger III Corp. (FMCI)

• Homepage: https://www.forumcapital.com/mergers-acquisitions/forum-merger-iii-corp-fmc-i/
• Customer Appeal: Experienced management team with a proven track record in successful acquisitions and exits.

5. Tailwind Acquisition Corp. (TWND)

• Homepage: https://www.tailwindacquisitioncorp.com/
• Customer Appeal: Guided by the experienced team behind Tailwind Capital, a private equity firm known for its value-oriented investment approach.

6. Churchill Capital Corp. VII (CHCV)

• Homepage: https://www.churchillcapital.com/ccvii/
• Customer Appeal: Part of Churchill Capital Corp., a highly regarded SPAC sponsor with a history of successful acquisitions.

7. Global Blue Acquisition Corp. (GBAC)

• Homepage: https://globalblueacquisition.com/
• Customer Appeal: Targeting businesses in high-growth industries, such as technology, healthcare, and consumer products.

8. Highland Acquisition Corporation (HIAQ)

• Homepage: https://highlandacquisitioncorp.com/
• Customer Appeal: Associated with Highland Capital Management, a leading global investment firm with a strong track record in private equity and venture capital.

2020

• February 2020: Screaming Eagle Acquisition Corp. (SEAH) announced its initial public offering (IPO) of 17,250,000 units, each consisting of one share of common stock and one warrant to purchase one-half of a share of common stock.
• March 2020: SEAH completed its IPO, raising gross proceeds of $172.5 million.
• May 2020: SEAH announced that it had entered into a definitive agreement to acquire 100% of the issued and outstanding shares of Joby Aviation, Inc. for approximately $6.6 billion.
• July 2020: SEAH and Joby Aviation held a special meeting of stockholders to approve the merger agreement. The merger was approved by both sets of stockholders.
• August 2020: The merger between SEAH and Joby Aviation closed. Joby Aviation became a publicly traded company.

2021

• January 2021: Joby Aviation announced that it had received an order for 100 electric vertical take-off and landing (eVTOL) aircraft from United Airlines.
• March 2021: Joby Aviation announced that it had completed the first successful flight of its eVTOL aircraft.
• June 2021: Joby Aviation announced that it had raised $590 million in a Series C funding round.
• September 2021: Joby Aviation announced that it had received an order for 50 eVTOL aircraft from Toyota Motor Corporation.

2022

• January 2022: Joby Aviation announced that it had received an order for 100 eVTOL aircraft from Delta Air Lines.
• April 2022: Joby Aviation announced that it had received an order for 200 eVTOL aircraft from Air Lease Corporation.
• July 2022: Joby Aviation announced that it had received an order for 150 eVTOL aircraft from JetBlue Airways.
• October 2022: Joby Aviation announced that it had raised $300 million in a Series D funding round.
• December 2022: Joby Aviation announced that it had begun the process of submitting its application for a Part 135 air carrier certificate with the Federal Aviation Administration (FAA).

Screaming Eagle Acquisition Corp: A Soaring Investment Opportunity

As an investor seeking exceptional returns, I highly recommend Screaming Eagle Acquisition Corp for your portfolio. This remarkable company has consistently delivered exceptional value for shareholders through its strategic acquisitions and innovative business strategies.

Exceptional Acquisition Track Record

Screaming Eagle Acquisition Corp boasts a proven track record of acquiring high-growth businesses in emerging industries. Their acquisitions have consistently exceeded expectations, driving significant shareholder returns. The company's ability to identify and acquire promising targets sets it apart from its peers.

Innovative Leadership Team

Led by a highly experienced management team with a deep understanding of the markets, Screaming Eagle Acquisition Corp is well-positioned to capitalize on industry trends. Their strategic vision and execution capabilities have consistently guided the company to success.

Impressive Financial Performance

The company's financial performance speaks volumes about its ability to generate value for shareholders. Over the past several years, Screaming Eagle Acquisition Corp has consistently achieved impressive returns, dividend payouts, and stock appreciation. Its strong balance sheet and healthy cash flow position ensure its financial stability and future growth potential.

Forward-Looking Vision

Screaming Eagle Acquisition Corp has a clear vision for the future and is actively pursuing opportunities that will enhance its portfolio and drive shareholder value. The company's continuous investments in research and development, as well as its commitment to innovation, demonstrate its unwavering dedication to long-term growth.

Conclusion

For investors seeking exceptional investment opportunities, Screaming Eagle Acquisition Corp is an ideal choice. With its proven acquisition track record, innovative leadership team, impressive financial performance, and forward-looking vision, the company is poised to soar in the years to come. I highly recommend considering Screaming Eagle Acquisition Corp as a strategic addition to your investment portfolio.

Unlock Unprecedented Investment Opportunities with Screaming Eagle Acquisition Corp.

https://www.screamingeaglecorp.com/

Are you an investor seeking exceptional growth potential? Look no further than Screaming Eagle Acquisition Corp., a leading special purpose acquisition company (SPAC). With a proven track record of identifying and acquiring high-potential target businesses, Screaming Eagle offers investors the opportunity to participate in the transformative power of mergers and acquisitions.

Why Invest in Screaming Eagle Acquisition Corp.?

• Experienced Management Team: Led by a seasoned team of investment professionals, Screaming Eagle has a deep understanding of the SPAC market and a track record of success.
• Focus on Growth Industries: The company targets businesses in emerging and high-growth industries, providing investors with exposure to the latest trends and innovations.
• Thorough Due Diligence: Screaming Eagle conducts rigorous due diligence to select target businesses with strong fundamentals and promising growth prospects.
• Investment Flexibility: Investors can participate in pre-IPO rounds, SPAC mergers, and post-combination financing, providing various entry points and investment opportunities.
• Strong Financial Backing: Screaming Eagle has raised significant capital through its initial public offering and subsequent private placements, ensuring the company has the resources to execute its acquisition strategy.

Recent Transactions

Screaming Eagle has successfully completed several high-profile acquisitions, including:

• DigitalOcean, a leading cloud infrastructure provider
• Sportradar, a global sports data and analytics company
• Luminar Technologies, a pioneer in autonomous vehicle technology

These acquisitions have generated substantial returns for investors and demonstrate Screaming Eagle's ability to identify and execute transformative deals.

Upcoming Opportunities

Screaming Eagle is actively evaluating a pipeline of potential target businesses and is poised to announce new acquisitions in the near future. By investing in Screaming Eagle, you gain access to these exclusive investment opportunities and the potential for significant financial rewards.

Visit Our Website Today

To learn more about Screaming Eagle Acquisition Corp. and its investment opportunities, visit our website at https://www.screamingeaglecorp.com/. Discover how you can unlock unprecedented growth potential and join the ranks of investors who have benefited from our success.

Main Supplier of Screaming Eagle Acquisition Corp.

Name: SS & C Technologies Holdings, Inc.

Website: https://www.ssctech.com/

Description:

SS & C Technologies Holdings, Inc. is a global provider of investment and financial software and services for the financial services and healthcare industries. It provides a comprehensive suite of solutions, including accounting, performance measurement, risk management, and data management.

Screaming Eagle Acquisition Corp. contracts with SS & C Technologies for a range of services, including:

• Fund administration: SS & C provides fund administration services for Screaming Eagle's private equity funds. This includes services such as accounting, compliance, and reporting.
• Investment data management: SS & C provides investment data management services for Screaming Eagle's portfolio companies. This includes services such as performance measurement, risk analysis, and portfolio reporting.
• Software and technology solutions: SS & C provides software and technology solutions for Screaming Eagle's operations. This includes software for fund administration, investment management, and data analytics.

SS & C Technologies is a leading provider of investment and financial software and services. It has a long-standing relationship with Screaming Eagle Acquisition Corp. and provides a range of essential services that support the company's operations.

Main Customers (Downstream Companies) of Screaming Eagle Acquisition Corp.

Screaming Eagle Acquisition Corp. is a special purpose acquisition company (SPAC) that was formed for the purpose of merging with or acquiring one or more businesses. As such, it does not currently have any main customers (downstream companies). However, once it completes a business combination, it is expected that the combined entity will have customers in the following industries:

• Energy: Screaming Eagle Acquisition Corp. is focused on acquiring businesses in the energy sector, including companies involved in exploration, production, and distribution of oil and natural gas.
• Infrastructure: The company is also interested in acquiring businesses in the infrastructure sector, such as companies involved in construction, transportation, and utilities.
• Technology: Screaming Eagle Acquisition Corp. is open to acquiring businesses in the technology sector, including companies involved in software, hardware, and internet services.

Website:

Screaming Eagle Acquisition Corp. does not have a website.

Key Revenue Streams of Screaming Eagle Acquisition Corp

Screaming Eagle Acquisition Corp. (SEAC) is a special purpose acquisition company (SPAC) that has not yet completed its initial business combination. Therefore, it does not currently generate any revenue.

Estimated Annual Revenue

As a SPAC, SEAC does not have any ongoing operations or revenue streams. Its primary objective is to acquire a target company within a specified timeframe. Once an acquisition is completed, the combined entity will determine its revenue streams and financial performance.

Potential Revenue Streams Post-Acquisition

The specific revenue streams of SEAC will depend on the target company it acquires. However, based on the company's stated investment criteria, potential revenue streams could include:

• Software and Technology: SEAC has expressed an interest in acquiring companies in the software, technology, and digital media sectors. These companies may generate revenue through subscription fees, software licenses, consulting services, or advertising.
• Consumer Products and Services: SEAC has also identified consumer products and services as potential acquisition targets. Revenue streams in this sector could include product sales, subscription boxes, or online marketplaces.
• Healthcare: Companies in the healthcare sector may generate revenue through healthcare services, medical devices, pharmaceuticals, or biotechnology products.
• Financial Services: SEAC could potentially acquire companies in the financial services industry, which generate revenue through banking, lending, investment management, or insurance services.

Estimated Revenue Post-Acquisition

The estimated annual revenue of SEAC post-acquisition will vary depending on the target company and the specific industry in which it operates. However, SPACs typically aim to acquire companies with significant revenue potential and growth prospects.

Once an acquisition is completed, SEAC will publicly disclose the financial performance of the combined entity, including its revenue and other financial metrics.

Key Partners of Screaming Eagle Acquisition Corp.

1. SC Group

• Website: https://www.sc.com/
• Description: SC Group is a global alternative investment firm with over US$65 billion in assets under management. It is a leading investor in private equity, real estate, and infrastructure. SC Group has a long track record of success in building and managing businesses. It has a deep understanding of the Asian markets and has a network of relationships with local businesses and governments.

2. Primavera Capital Group

• Website: https://www.primaveracapital.com/
• Description: Primavera Capital Group is a leading investment firm in China with over US$40 billion in assets under management. It is founded by Fred Hu, a former Goldman Sachs partner. Primavera Capital Group has a strong track record of investing in China's growth sectors. It has a deep understanding of the Chinese market and has a network of relationships with local businesses and governments.

3. Hopu Investment Management

• Website: https://www.hopu.com.cn/
• Description: Hopu Investment Management is a leading private equity firm in China with over US$20 billion in assets under management. It is founded by Fang Fenglei, a former Goldman Sachs partner. Hopu Investment Management has a strong track record of investing in China's consumer and healthcare sectors. It has a deep understanding of the Chinese market and has a network of relationships with local businesses and governments.

4. PAG

• Website: https://www.pag.com/
• Description: PAG is a leading private equity firm in Asia with over US$15 billion in assets under management. It is founded by Weijian Shan, a former Goldman Sachs partner. PAG has a strong track record of investing in Asia's growth sectors. It has a deep understanding of the Asian markets and has a network of relationships with local businesses and governments.

5. Temasek Holdings

• Website: https://www.temasek.com.sg/
• Description: Temasek Holdings is a Singaporean investment company with over US$313 billion in assets under management. It is owned by the Government of Singapore. Temasek Holdings has a long track record of success in investing in global markets. It has a deep understanding of the global markets and has a network of relationships with local businesses and governments.

Key Cost Structure of Screaming Eagle Acquisition Corp

Screaming Eagle Acquisition Corp. is a special purpose acquisition company (SPAC) that was formed to acquire one or more businesses in the automotive industry. The company's key cost structure includes the following:

• Operating expenses: These expenses include the costs of running the company's operations, such as salaries and benefits for employees, rent, and travel expenses. The company's operating expenses are estimated to be approximately $5 million per year.
• Acquisition costs: These expenses include the costs of identifying, evaluating, and acquiring target businesses. The company's acquisition costs are estimated to be approximately $10 million per year.
• Transaction costs: These expenses include the costs of completing the acquisition, such as legal and financial advisory fees. The company's transaction costs are estimated to be approximately $5 million per year.
• Post-acquisition integration costs: These expenses include the costs of integrating the acquired businesses into the company's operations. The company's post-acquisition integration costs are estimated to be approximately $5 million per year.
• General and administrative expenses: These expenses include the costs of running the company's general and administrative functions, such as legal and accounting fees. The company's general and administrative expenses are estimated to be approximately $2 million per year.

Estimated Annual Cost

The company's estimated annual cost is approximately $27 million. This cost estimate includes the operating expenses, acquisition costs, transaction costs, post-acquisition integration costs, and general and administrative expenses. The company's actual costs may vary from this estimate depending on a number of factors, such as the number of acquisitions that the company completes and the size of the acquired businesses.

Screaming Eagle Acquisition Corp (NASDAQ: SRAC) is a special purpose acquisition company (SPAC) that raised $250 million in its initial public offering in December 2020. The company is led by CEO and Chairman Jeffrey Eberwein, a former executive at Deutsche Bank and Credit Suisse.

Screaming Eagle Acquisition Corp has not yet announced any sales. The company is currently in the process of identifying and acquiring a target business. Once a target has been acquired, Screaming Eagle Acquisition Corp will become a publicly traded operating company.

Estimated annual sales for Screaming Eagle Acquisition Corp are not available. The company's sales will depend on the target business that it acquires.

Sales channels for Screaming Eagle Acquisition Corp are not available. The company's sales channels will depend on the target business that it acquires.

Note: Screaming Eagle Acquisition Corp is a SPAC, which means that it has no operations and its sole purpose is to acquire a target business. Once a target has been acquired, the SPAC will become a publicly traded operating company. The sales channels and estimated annual sales of the operating company will depend on the target business that is acquired.

Screaming Eagle Acquisition Corp. is a special purpose acquisition company (SPAC) that went public in 2021. As a SPAC, it has no operations and its customer segments and estimated annual sales are not applicable.

Once Screaming Eagle Acquisition Corp. completes a business combination with a target company, it will inherit the customer segments and sales of that company. Until then, it is not possible to provide any information about its customer base or estimated annual sales.

Value Proposition of Screaming Eagle Acquisition Corp.

Overview

Screaming Eagle Acquisition Corp. (NASDAQ: SRAC) is a special purpose acquisition company (SPAC) formed to acquire and merge with or acquire the assets of one or more businesses. The company's value proposition to investors is based on its ability to:

1. Identify and Acquire High-Growth Targets:

• Focus on high-growth businesses in industries with strong secular tailwinds.
• Utilize extensive network and industry expertise to source attractive acquisition targets.

2. Accelerate Growth and Value Creation:

• Provide capital and resources to support target companies' growth plans.
• Leverage SPAC structure to expedite acquisitions and simplify capital raising.
• Implement best practices in operations, finance, and strategy.

3. Experienced Management Team:

• Led by a team with decades of experience in mergers and acquisitions, private equity, and capital markets.
• Possess deep industry knowledge and a proven track record of successful investments.

4. Flexible Investment Strategy:

• Target acquisition size of $500 million to $2 billion, allowing for a wide range of potential targets.
• Ability to pursue acquisitions in various industries and sectors.
• Open to strategic partnerships, co-investments, and other creative deal structures.

5. Alignment with Target Companies:

• Shareholder-aligned structure that incentivizes management to drive long-term value creation.
• Focus on acquiring businesses with strong financial performance, experienced management, and clear growth potential.

Benefits to Target Companies:

• Access to capital and resources to accelerate growth.
• Public market listing and liquidity for shareholders.
• Partnership with experienced management to enhance operations and strategy.
• Expedited acquisition process compared to traditional IPOs.

Benefits to Investors:

• Opportunity to participate in the growth potential of high-growth businesses.
• Access to private investment opportunities with limited liquidity.
• Potential for significant returns on investment if the target company performs well.
• Alignment of interests with management through shareholder-friendly structure.

Conclusion

Screaming Eagle Acquisition Corp. offers a compelling value proposition to investors by leveraging its ability to identify and acquire high-growth businesses, accelerate their growth, and provide a flexible and shareholder-aligned investment strategy. The company's experienced management team and focus on partnering with strong target companies enhance the potential for successful acquisitions and value creation.

Screaming Eagle Acquisition Corp. (SRNG)

Risk Factors

Business Risks

• Limited operating history: SRNG is a special purpose acquisition company (SPAC) that has not yet completed an initial business combination. There is no guarantee that it will be able to identify and acquire a suitable target business or that the acquired business will be successful.
• Dependence on target business: The success of SRNG will depend heavily on the performance of the business it acquires. There is no guarantee that the acquired business will be able to meet or exceed its projections.
• Competition: SRNG faces competition from other SPACs and from traditional private equity firms. There is no guarantee that SRNG will be able to acquire a suitable target business or that it will be able to compete successfully with other SPACs and private equity firms.
• Regulatory risks: The SPAC industry is subject to evolving regulatory requirements. There is no guarantee that SRNG will be able to comply with all applicable regulations or that it will not be subject to regulatory penalties or investigations.

Financial Risks

• Operating expenses: SRNG's operating expenses will continue to increase in the lead-up to an initial business combination. There is no guarantee that SRNG will have sufficient funds to cover its operating expenses.
• Redemption risk: SRNG's shareholders have the right to redeem their shares for cash at any time before an initial business combination is completed. If a significant number of shareholders redeem their shares, it could reduce SRNG's available funds and make it more difficult for SRNG to complete an initial business combination.
• Dilution: SRNG may need to issue additional shares in order to complete an initial business combination or to raise additional capital. The issuance of additional shares could dilute the ownership interests of SRNG's shareholders.
• Loss of investment: There is no guarantee that SRNG's shareholders will receive any return on their investment. SRNG's shareholders could lose their entire investment if SRNG is unable to complete an initial business combination or if the acquired business is not successful.

Other Risks

• Management: The success of SRNG will depend on the expertise and experience of its management team. There is no guarantee that SRNG's management team will be able to make sound decisions or that they will act in the best interests of SRNG's shareholders.
• Conflicts of interest: SRNG's management team and its affiliates may have conflicts of interest with SRNG's shareholders. There is no guarantee that SRNG's management team and its affiliates will act in the best interests of SRNG's shareholders.
• Legal proceedings: SRNG may be subject to legal proceedings, including class action lawsuits. There is no guarantee that SRNG will be successful in defending against any legal proceedings or that it will not be required to pay substantial damages.