Business Context and Reporting Period
Company: Chenghe Acquisition III Co. (a Cayman Islands exempted company and blank check SPAC).
Reporting Period: Quarter ended March 31, 2026.
Status: The Company has not commenced operations. Its sole purpose is to effect a merger, share exchange, or asset acquisition. It completed its Initial Public Offering (IPO) on September 17, 2025, and is currently searching for a target business. The Company is classified as an emerging growth company and a shell company.
Key Financial Metrics
| Metric | Value (Q1 2026) |
|---|---|
| Net Income | $884,748 |
| Operating Loss | ($176,757) |
| Interest Income (Trust Account) | $1,061,505 |
| Cash (Operating) | $593,663 |
| Cash Held in Trust Account | $128,931,590 |
| Total Assets | $129,627,058 |
| Total Liabilities | $5,302,174 |
| Shareholders' Deficit | ($4,606,706) |
| Class A Shares Subject to Redemption | 12,650,000 shares ($10.19/share) |
| Net Cash Used in Operating Activities | ($103,162) |
Material Changes vs. Prior Period
- Trust Account Growth: Cash held in the Trust Account increased from $127,870,085 (Dec 31, 2025) to $128,931,590 (Mar 31, 2026), driven by $1,061,505 in interest income.
- Redemption Value Accretion: The carrying value of Class A ordinary shares subject to possible redemption increased by $1,061,505 to match the redemption value, resulting in a corresponding charge to accumulated deficit.
- Operating Cash Flow: The Company utilized $103,162 in net cash for operating activities, primarily due to general and administrative costs of $176,757, partially offset by changes in working capital.
- Liabilities: Current liabilities increased from $178,499 to $242,174, largely due to an increase in amounts due to related parties (administrative fees) and accrued expenses.
Outlook, Risks, and Management Commentary
- Going Concern: Management has raised substantial doubt about the Company's ability to continue as a going concern. The Company lacks sufficient liquidity to sustain operations for at least one year without completing a Business Combination or securing additional financing.
- Completion Window: The Company has 18 months from the IPO closing (until March 17, 2027) to complete an initial Business Combination. Failure to do so will result in liquidation and redemption of public shares.
- Capital Resources: The Company intends to use funds outside the Trust Account ($593,663) for due diligence and transaction costs. Sponsors may provide "Working Capital Loans" up to $1,500,000, which may be convertible into units.
- Risks: Risks include the inability to find a suitable target, market volatility, geopolitical instability, and the potential for third-party claims against the Trust Account (though sponsors have agreed to indemnify the Trust Account up to $10.00 per share).
- Deferred Fees: A deferred underwriting fee of $5,060,000 is payable only upon the successful completion of a Business Combination.
Investor Verification Checklist
- Liquidity Runway: Verify if the $593,663 in operating cash is sufficient to fund the search for a target until the March 2027 deadline or if sponsor loans are imminent.
- Redemption Rights: Confirm the current redemption value per share ($10.19) and the conditions under which public shareholders can redeem their shares.
- Target Search: Assess the progress of the Company's search for a target business, as no target has been selected as of the filing date.
- Related Party Transactions: Review the $15,000 monthly administrative fee paid to the Sponsor and the potential for additional Working Capital Loans.
- Warrant Terms: Note that warrants are exercisable at $11.50 per share and may be redeemed by the Company if the share price exceeds $18.00 for 20 trading days within a 30-day period.