CRAN

Business Context and Reporting Period

Company: Crane Harbor Acquisition Corp. II (CRANU/CRAN/CRANR)
Reporting Period: Quarter ended June 30, 2026 (Six months ended June 30, 2026)
Business Type: Cayman Islands exempted company (Special Purpose Acquisition Company - SPAC). The Company was incorporated on June 19, 2025, and consummated its Initial Public Offering (IPO) on December 17, 2025. It has not yet commenced operations and is currently identifying a target for a business combination.

Key Financial Metrics

Material Changes vs. Prior Period

• Trust Account Growth: The Trust Account balance increased from $345,487,979 at December 31, 2025, to $351,626,627 at June 30, 2026, driven by $6,138,648 in interest income earned on U.S. Treasury securities and money market funds.
• Profitability: The Company reported a net income of $5,707,361 for the six months ended June 30, 2026, compared to a net loss of $17,420 for the period from inception (June 19, 2025) through June 30, 2025. This shift is due to the commencement of interest earnings post-IPO.
• Operating Expenses: General and administrative costs for the six months ended June 30, 2026, were $431,287, primarily driven by administrative support fees ($180,000) and compliance costs associated with being a public company.
• Cash Position: Cash held outside the Trust Account decreased from $2,194,564 to $1,778,367, reflecting a net cash outflow of $399,153 from operating activities.

Outlook, Risks, and Contingencies

• Business Combination Deadline: The Company must complete an initial business combination within 24 months of the IPO closing (December 17, 2025), or by December 17, 2027, unless extended by shareholder vote. Failure to do so will result in liquidation and redemption of public shares.
• Liquidity: Management believes current cash outside the Trust Account ($1.78 million) is sufficient to fund operations for at least one year. The Sponsor may provide "Working Capital Loans" up to $2.5 million if needed, which may be converted into units post-combination.
• Redemption Risk: Public shareholders may redeem their shares for a pro-rata portion of the Trust Account. The redemption value is currently $10.19 per share. If redemptions occur, the deferred underwriting fee ($14.7 million) is payable only on the remaining funds.
• Risk Factors: Risks include the inability to complete a business combination, market volatility, geopolitical instability, and the potential for the Sponsor to be liable for third-party claims reducing Trust Account funds below $10.00 per share (subject to waivers).
• Related Party Transactions: The Company pays the Sponsor $30,000 per month for administrative services. As of June 30, 2026, $30,000 in fees were accrued.

Investor Verification Checklist

• Trust Account Yield: Verify the current interest rate environment and its impact on the Trust Account balance, which directly influences the redemption price per share.
• Extension Provisions: Review the specific terms required to extend the 24-month completion window, including any deposit requirements by the Sponsor.
• Deferred Underwriting Fee: Confirm the calculation of the $14.7 million deferred fee and its impact on net proceeds available to the combined entity post-transaction.
• Shareholder Redemption Rights: Understand the 15% cap on redemptions for any single shareholder acting in concert and the implications for capital structure.
• Target Search Progress: Assess management's disclosure regarding the status of identifying a target business, as no specific target has been announced.