Business Context and Reporting Period
Hall Chadwick Acquisition Corp. (HCAC) is a Cayman Islands exempted company incorporated on May 22, 2025, operating as a blank check company (SPAC). The filing covers the quarterly period ended March 31, 2026. The Company consummated its Initial Public Offering (IPO) on November 24, 2025, and is currently in the process of identifying a target for a Business Combination. As of the reporting date, the Company has not commenced operations and generates no operating revenue.
Key Financial Metrics
| Metric | Value (Q1 2026) | Value (Inception to Q1 2026) |
|---|---|---|
| Net Income | $1,652,279 | $2,309,868 |
| Operating Loss | $(183,126) | $(311,813) |
| Interest Income (Trust Account) | $1,835,406 | $2,621,681 |
| Cash and Cash Equivalents (Outside Trust) | $463,036 | N/A |
| Trust Account Balance | $209,621,481 | N/A |
| Total Assets | $210,201,391 | N/A |
| Total Liabilities | $8,324,667 | N/A |
| Deferred Underwriting Fee | $8,280,000 | N/A |
| Class A Shares Subject to Redemption | 20,700,000 shares ($207,000,000) | N/A |
| EPS (Class A) | $0.08 | $0.27 |
| EPS (Class B) | $0.21 | $0.29 |
Material Changes and Operational Highlights
- Trust Account Growth: The Trust Account balance increased from $207,786,276 at December 31, 2025, to $209,621,481 at March 31, 2026, primarily due to interest earnings of approximately $1.84 million during the quarter.
- Operating Expenses: Formation, general, and administrative costs for the quarter were $183,126. This includes a $64,667 administrative support fee paid to the Sponsor.
- Liquidity: Working capital outside the Trust Account is $490,223. The Company reported sufficient funds to meet working capital needs for at least one year from the filing date.
- Share Structure: As of May 26, 2026, there were 21,314,000 Class A ordinary shares and 7,886,293 Class B ordinary shares issued and outstanding.
Outlook, Risks, and Recent Developments
- Proposed Business Combination: On April 1, 2026 (subsequent to the period end), the Company announced a non-binding Letter of Intent (LOI) with REEcycle Holdings, Inc. The proposed transaction values REEcycle at approximately $600 million, assuming no redemptions.
- Completion Window: The Company must complete a Business Combination within 24 months of the IPO closing (November 24, 2025), or it must liquidate and redeem Public Shares.
- Risk Factors: The filing highlights risks related to geopolitical instability (Russia-Ukraine and Israel-Hamas conflicts), which could impact global markets and the ability to consummate a transaction. There is also a risk that the Company may need to raise additional funds if transaction costs exceed estimates or if significant redemptions occur.
- Deferred Fees: A deferred underwriting fee of $8,280,000 is payable only upon the consummation of a Business Combination.
Investor Verification Checklist
- Verify the status of the non-binding LOI with REEcycle Holdings, Inc. and the timeline for a definitive agreement.
- Confirm the current redemption rate environment and potential impact on the Trust Account balance available for the transaction.
- Review the Sponsor's commitment to cover any shortfall in the Trust Account below $10.00 per share due to third-party claims.
- Monitor the Company's cash burn rate outside the Trust Account to ensure sufficiency for due diligence and operational costs until the deal closes or the liquidation deadline approaches.
- Check for any updates on the 24-month completion deadline and potential shareholder votes for extensions.