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Related Party Transactions
8 Months Ended
Sep. 30, 2018
Related Party Transactions [Abstract]  
Related Party Transactions

Note 5 – Related Party Transactions

 

Founder Shares

 

In September 2018, our Initial Shareholders acquired an aggregate of 2,875,000 ordinary shares for an aggregate purchase price of $19,550, or approximately $0.01 per share (the “Founder Shares”). The Founder Shares include an aggregate of up to 375,000 ordinary shares subject to forfeiture to the extent that the over-allotment option is not exercised by the underwriters in full or in part. Our Initial Shareholders will be required to forfeit only a number of ordinary shares necessary to continue to maintain, in the aggregate, the 20% ownership interest in our ordinary shares after giving effect to the offering and exercise, if any, of the underwriters’ over-allotment option (excluding the sale of the Private Units). On November 20, 2018, 3,002 Founder Shares were forfeited in connection with the underwriters’ partial exercise of the over-allotment option. The Initial Shareholders maintains 20% of the Company’s issued and outstanding shares after the Initial Public Offering and the partial exercise of the over-allotment (excluding the sale of the Private Units).

 

The Founder Shares are identical to the ordinary shares included in the units being sold in this offering. However, the initial shareholders have agreed (A) to vote any shares owned by them in favor of any proposed business combination, (B) not to convert any shares in connection with a shareholder vote to approve a proposed initial business combination or any amendment to our charter documents prior to consummation of an initial business combination, or sell any shares to us in a tender offer in connection with a proposed initial business combination and (C) that the founder shares shall not participate in any liquidating distribution from the trust account upon winding up if a business combination is not consummated.

 

Additionally, subject to certain limited exceptions, the Initial Shareholders have agreed not to transfer, assign or sell any of the Founder Shares (except to certain permitted transferees) until, with respect to 50% of the Founder Shares, the earlier of (i) six months after the date of the consummation of a Business Combination, or (ii) the date on which the closing price of the Company’s ordinary shares equals or exceeds $12.50 per share (as adjusted for stock splits, stock dividends, reorganizations and recapitalizations) for any 20 trading days within any 30-trading day period commencing after a Business Combination, and with respect to the remaining 50% of the Founder Shares, upon six months after the date of the consummation of a Business Combination, or earlier, in each case, if, subsequent to a Business Combination, the Company consummates a subsequent liquidation, merger, stock exchange or other similar transaction which results in all of the Company’s shareholders having the right to exchange their ordinary shares for cash, securities or other property. 

 

Related Party Advances

 

In the company’s formation process and before June 30, 2018, the Sponsor advanced HK$22,000, equivalent to US$2,818 to cover the legal expenses associated with the business registration. The Company repaid the Sponsor a total of $2,818 on July 6, 2018. In September, 2018, the Sponsor advanced the Company an additional HK$1,985 (equivalent to US$254) for bank service charge.  As of September 30, 2018, the amount due to related parties was HK$ 1,985 (or US$ 254) as a result of the formation costs paid by the Sponsor on behalf of the Company.

 

On October 19, 2018, the Company’s Sponsor advanced the Company an additional $71,000 for costs associated with the Initial Public Offering. Such advances were non-interest bearing and shall be repaid upon the closing of the Initial Public Offering. These advances were repaid by the Company on November 15, 2018.

 

Related Party Loan – Promissory Note

 

Pursuant to a promissory note dated July 6, 2018, the Sponsor loaned the Company $300,000, which was used for the payment of costs associated with the Initial Public Offering. The loan is non-interest bearing, unsecured and due at the closing of a Business Combination.