LIQUIDITY AND GOING CONCERN

6 Months Ended

Jun. 30, 2015

Liquidity And Going Concern [Abstract]

Liquidity And Going Concern [Text Block]

NOTE 2. LIQUIDITY AND GOING CONCERN

As of June 30, 2015, the Company had $696,660 in its operating bank accounts, $80,018,388 in cash and securities held in the Trust Account to be used for a Business Combination or to repurchase or convert its common stock in connection therewith and a working capital deficit of $887,522. As of June 30, 2015, $18,388 of the amount on deposit in the Trust Account represented interest income, which is available to be withdrawn to pay the Company’s tax obligations. Since inception, the Company has not withdrawn any interest income form the Trust Account.

Until the consummation of a Business Combination, the Company will be using the funds not held in the Trust Account for identifying and evaluating prospective acquisition candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to acquire, and structuring, negotiating and consummating the Business Combination.

 

For the six months ended June 30, 2015, the Company used cash of $426,509 in operating activities. As of June 30, 2015, the Company had current liabilities of $1,713,968, primarily representing amounts owed to lawyers, accountants and consultants who have advised the Company on matters related to a potential Business Combination. Such work is continuing after June 30, 2015 and amounts are continuing to accrue. The Company anticipates deferring payment of some of these costs and paying them in connection with the consummation of the potential Business Combination. Funds in the Trust Account are not available for this purpose absent an initial Business Combination. If the Business Combination is not consummated, the Company would lack the resources to pay all of the liabilities that have been incurred by the Company to date or after and the Company may lack the resources needed to consummate another Business Combination. The Company has entered into fee arrangements with certain service providers and advisors in connection with a potential Business Combination pursuant to which certain fees will be deferred and payable only if the Company consummates such potential Business Combination (see Note 7). There can be no assurances that the Company will complete this or any other Business Combination.

The Company may need to raise additional capital through loans or additional investments from its stockholders, officers, directors, or third parties. The Company’s Sponsors have each committed $250,000, for an aggregate of $500,000, to be provided to the Company in the event that funds held outside of the Trust Account are insufficient to fund its expenses after the Initial Public Offering and prior to a Business Combination (see Note 7). In addition, the Company’s officers, directors and Sponsors may, but are not obligated to, loan the Company funds, from time to time or at any time, in whatever amount they deem reasonable in their sole discretion, to meet the Company’s working capital needs.

None of the Sponsors, stockholders, officers or directors are under any obligation to advance funds to, or to invest in, the Company, other than as described above. Accordingly, the Company may not be able to obtain additional financing. If the Company is unable to raise additional capital, it may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of a potential transaction, and reducing overhead expenses. The Company cannot provide any assurance that new financing will be available to it on commercially acceptable terms, if at all. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.