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Rigel (NASDAQ:RIGL) Resource Acquisition Corp. (NYSE:RRAC) announced Monday that it has entered into a financial agreement with its sponsor, Rigel Resource Acquisition Holding LLC. The agreement, dated Thursday, provides the company with a $1.5 million promissory note for working capital purposes.
The loan is interest-free and is set to be repaid on the earlier of two dates: either by the deadline for the company to complete an initial business combination as per its governing documents or upon the actual consummation of such a business combination. This financial maneuver is designed to support Rigel Resource Acquisition Corp.'s operational expenses as it seeks to finalize a business combination.
The promissory note agreement was detailed in an 8-K filing with the U.S. Securities and Exchange Commission. The filing also included cautionary statements regarding forward-looking information, emphasizing that actual results could differ from those projected in any forward-looking statements due to various risks and uncertainties.
The company, which is classified under the "blank checks" industrial sector, is based in the Cayman Islands but operates out of New York. It has securities registered with the New York Stock Exchange, including units (RRAC.U), Class A ordinary shares (RRAC), and redeemable warrants (RRAC WS).
This strategic financial move by Rigel Resource Acquisition Corp. comes as it navigates the process of identifying and merging with a target company, a common practice for special purpose acquisition companies (SPACs) like itself. The details of this agreement are based on information provided in the press release statement.
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