Business Context and Reporting Period
Company: White Pearl Acquisition Corp. (WPAC)
Reporting Period: Quarter ended March 31, 2026
Status: Blank check company (SPAC) incorporated in the British Virgin Islands.
Key Event: The Company consummated its Initial Public Offering (IPO) on February 3, 2026, selling 11,500,000 Units (including full exercise of the over-allotment option) at $10.00 per unit. Simultaneously, a Private Placement of 290,000 units was completed with the Sponsor.
Key Financial Metrics
| Metric | Value (Three Months Ended Mar 31, 2026) |
|---|---|
| Net Income | $547,961 |
| Operating Loss | $(83,815) |
| Total Assets | $117,728,290 |
| Cash (Outside Trust) | $1,974,500 |
| Investments in Trust Account | $115,627,232 |
| Total Liabilities | $190,997 |
| Shareholders' Equity | $1,910,061 |
| Class A Shares Subject to Redemption | 11,500,000 shares ($115,627,232) |
| Net Cash Provided by Financing | $117,160,280 |
Material Changes vs. Prior Period
- Balance Sheet Transformation: Total assets increased from $106,812 (Dec 31, 2025) to $117.7 million (Mar 31, 2026) due to the IPO proceeds.
- Trust Account: Investments held in the Trust Account increased from $0 to $115.6 million following the deposit of IPO proceeds.
- Equity Structure: Shareholders' equity shifted from a deficit of $(33,311) to a positive balance of $1.9 million.
- Revenue Generation: The Company generated $631,776 in total other income (primarily interest income from the Trust Account), whereas no such income existed in the prior period.
- Liabilities: Current liabilities increased to $190,997, driven by a related-party promissory note ($170,551) and accrued administrative fees ($20,000).
Outlook, Risks, and Management Commentary
- Business Combination Deadline: The Company has until August 3, 2027 (18 months from IPO) to consummate an initial business combination.
- Going Concern: Management has determined that the mandatory liquidation requirement if a business combination is not completed raises substantial doubt about the Company's ability to continue as a going concern.
- Liquidity: Post-IPO liquidity is satisfied by proceeds held outside the Trust Account ($1.97 million). The Sponsor has agreed to loan up to $350,000 for working capital (currently $170,551 outstanding) and may provide additional working capital loans convertible into units.
- Redemption Rights: Public shareholders have the right to redeem their shares for a pro-rata portion of the Trust Account upon the completion of a business combination or liquidation.
- Risks: Risks include the inability to complete a business combination, market volatility, and potential global conflicts affecting financing or target operations.
Investor Verification Checklist
- Trust Account Balance: Verify the $115.6 million balance and the $627,232 interest earned to date.
- Redemption Value: Confirm the per-share redemption value calculation ($10.05 per share approx. based on current trust balance).
- Related Party Obligations: Review the $170,551 promissory note and $20,000 accrued administrative fee owed to the Sponsor.
- Over-Allotment Exercise: Confirm the full exercise of the 1,500,000 unit over-allotment option, which eliminated forfeiture risks for Founder Shares.
- Extension Provisions: Review the terms for extending the 18-month completion window, if applicable.