This week, following multiple rounds of coordination by global coordinators including the U.S. Joint Business Association and the Small and Medium Enterprises Overseas Listing Capital Group, a South Korean AI cloud data intelligence firm (with a tentative valuation of USD 165 million) officially signed a Letter of Intent (LOI) with a Cayman-incorporated Special Purpose Acquisition Company (SPAC) launched by a U.S. team. The SPAC has a total market capitalization of USD 85 million and a share price of USD 10 per share. The two parties reached a preliminary consensus on the core terms of the merger and listing, marking a major milestone for the company’s U.S. listing journey.

From right to left：Ms. Yuan Xiaoyan, Vice President of SME Group;

Mr. Lee Young Soo, CEO of the AI Company;

Mr. Park Chan-yoon, Chairman of SME Korea;

Mr. Lee Sung Lim, Secretary-General of SME Korea.

The key progress of this transaction lies in the clarification of a cooperation framework for CNY 500 million PIPE financing during the pre-merger De-SPAC phase. As a core supporting component of the SPAC merger, this round of PIPE financing can not only replenish capital reserves and consolidate the foundation for listing, but also provide an objective reference for corporate valuation through the participation of professional investors, effectively reducing transaction uncertainties.

Currently, driven by the tripartite institutional coordination mechanism involving the U.S. Joint Business Association, the Small and Medium Enterprises Overseas Listing Capital Group, and the listing service providers, the processes including the company’s PCAOB audit and offshore structure establishment are drawing to a close. The two parties to the transaction have simultaneously kicked off preparations for signing the Business Combination Agreement (BCA). In particular, with the joint efforts of the South Korean company, U.S. brokers, U.S. legal counsel, financial advisors and other institutions, the formal completion of relevant procedures is scheduled to take place in the near future.