Filing summary
Entity and period: The supplied filing is JATT Acquisition Corp.’s Form 10-Q for the quarter ended March 31, 2021, not a filing identified as Zura Bio Ltd. JATT was a newly formed Cayman Islands blank-check company seeking a business combination. Its reported financial period runs from inception on March 10, 2021 through March 31, 2021; it had not commenced operations. There is no prior comparable period.
Financial results and liquidity
- Revenue: None. The company stated it would not generate operating revenue before completing a business combination.
- Expenses and profit: General and administrative expense and net loss were both $33,039; basic and diluted loss per share was $0.01.
- Cash flow: Net cash provided by operating activities was $24,975, and ending cash was $24,975. The positive operating cash flow reflected related-party-paid expenses and changes in payables and accruals, rather than operating earnings.
- Balance sheet: Total assets were $95,575, including $70,600 of deferred offering costs. Total liabilities were $103,614, including $50,000 due to a related party. Shareholders’ deficit was $8,039.
- Liquidity: Management reported approximately $25,000 of cash and a working-capital deficit of approximately $79,000 at March 31. The sponsor note was later repaid, and management said post-IPO liquidity would come from proceeds held outside the trust account. No revenue or operating margin was reported.
Material developments and outlook
- The filing describes subsequent events after quarter-end: JATT completed its IPO on July 16, 2021, raising $120 million gross, then raised another $18 million when the underwriters exercised the over-allotment option on July 19. It also raised approximately $5.9 million from private-placement warrants. Approximately $139.4 million was placed in a trust account.
- The IPO and related transactions occurred after the reporting period and should not be treated as March 31 balance-sheet cash or results.
- JATT had 18 months from the IPO closing—through January 16, 2023—to complete a business combination; otherwise it would wind up and redeem public shares, subject to stated terms. Management expected available working capital and borrowing capacity to meet needs through the earlier of a business combination or one year from the filing.
- The sponsor and certain affiliates or officers could provide working-capital loans but were not obligated to do so. A $10,000 monthly administrative-support fee would begin upon NYSE listing and end at business-combination completion or liquidation.
- Management identified COVID-19 as a possible risk to the company’s financial position, IPO close, or target search, but said the impact was not determinable. Management reported effective disclosure controls and no material change in internal control over financial reporting.
Investor facts to verify
- Confirm the entity: this source is JATT Acquisition Corp., not Zura Bio Ltd.
- Reconcile related-party borrowing disclosures: the financial statements and notes report approximately $50,000 borrowed by March 31, while a later Part II disclosure says approximately $117,000 was borrowed and outstanding at June 30; both say the note was repaid July 21.
- Check post-quarter IPO and trust-account figures against the final prospectus and subsequent filings; the text contains inconsistent references to the dates of the over-allotment and related transactions.
- Review the deferred underwriting commissions, warrant liability accounting, redemption terms, and business-combination deadline, including the risks that warrants could expire worthless and public-share redemptions could reduce funds available for a transaction.