HZJL Cayman Moves Ahead with RDAC Merger
Deal News | Jan 27, 2025 | EIN
HZJL Cayman Limited has announced a definitive merger agreement with Rising Dragon Acquisition Corporation, a SPAC listed on Nasdaq. The merger will result in HZJL becoming a wholly-owned subsidiary of Xpand Boom Technology Inc., a Cayman Islands exempted company also set to list on Nasdaq. The deal awards HZJL shareholders 35 million ordinary shares of Xpand Boom Technology, with an opportunity for an additional 20 million shares contingent on performance over two years. The transaction, supported by top legal advisors and financial advisors, is subject to regulatory and shareholder approval. This merger underscores HZJL's strategic alignment in empowering local businesses with innovative branding, software, and supply chain solutions, fostering scalable growth in lifestyle sectors.
Sectors
- Financial Services
- Technology
- Consumer Services
Geography
- Cayman Islands – Both HZJL and Rising Dragon Acquisition Corp. are incorporated in the Cayman Islands, aligning with tax regulations and shareholder governance.
- United States – The business combination involves a Nasdaq-listed SPAC, requiring U.S. regulatory approval and SEC filing.
- China – HZJL is based in Hangzhou, China, influencing its business operations and market strategies.
Industry
- Financial Services – The article discusses a merger between a SPAC and a service providing company, involving complex financial arrangements and stock transactions.
- Technology – HZJL's core services feature innovative technology solutions, including software applications and online branding tools.
- Consumer Services – HZJL offers targeted services towards local lifestyle businesses, enhancing their operations and brand visibility.
Financials
- 35 million ordinary shares – Total shares to be received by HZJL shareholders from Xpand Boom Technology post-merger.
- 20 million ordinary shares – Additional shares earn-out contingent on achieving certain revenue targets.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| HZJL Cayman Limited | Target company | Company | A provider of branding, software, and supply chain services to support local businesses' growth. |
| Rising Dragon Acquisition Corporation | Acquirer (SPAC) | Company | A special purpose acquisition company listed on Nasdaq, seeking business opportunities for mergers. |
| Xpand Boom Technology Inc. | Bidding company | Company | A wholly-owned subsidiary of RDAC that will be involved in the merger with HZJL. |
| Loeb & Loeb LLP | Legal advisor to RDAC | Company | One of the legal firms advising RDAC in this transaction. |
| Han Kun Law Offices | Legal advisor to HZJL | Company | Advising HZJL in legal proceedings associated with the merger agreement. |
| Chain Stone Capital Limited | Financial advisor to HZJL | Company | Providing financial advisory services to HZJL for the merger deal. |
| Xing Lulu | CEO | People | CEO of Rising Dragon Acquisition Corporation, involved in orchestrating the merger. |
| Xiong Bin | Founder | People | Founder of HZJL, leading the company towards the merger with RDAC. |