Spark I Acquisition Issues Promissory Note to SPAC Fund LLC in Recent SEC Filing

In a recent Form 8-K filing with the Securities and Exchange Commission dated January 28, 2025, Spark I Acquisition Corporation (NASDAQ: SPKLU) disclosed the issuance of an unsecured promissory note to SPAC Fund LLC. According to the filing, Spark I Acquisition Corp drew and borrowed $840,000 from the principal amount of up to $1,900,000 specified in the note. The promissory note, which does not accrue interest, will be repayable in full upon the completion of Spark I Acquisition’s initial business combination.

Should the business combination fail to materialize, the note will not be subject to repayment, and all outstanding amounts will be forgiven. Upon the successful execution of a business combination, SPAC Fund LLC will have the option to convert up to $1,500,000 of the unpaid principal balance of the note into warrants that allow the purchase of Class A ordinary shares of Spark I Acquisition.

The terms of the warrants, known as Working Capital Warrants, will mirror those of warrants issued to SPAC Fund LLC during a private placement simultaneous with Spark I Acquisition’s initial public offering. The promissory note includes provisions for customary events of default, which, if triggered, will accelerate the repayment of the outstanding balance.

Further details about the relationship between Spark I Acquisition and SPAC Fund LLC are available in the “Item 13. Certain Relationships and Related Party Transactions” section of Spark I Acquisition’s Annual Report on Form 10-K for the year concluded on December 31, 2023, which has been incorporated by reference in the filing.

The promissory note has been included as Exhibit 10.1 to the Form 8-K filing and is considered a summary, with the full details of the note available upon reference to the exhibit.

Additionally, the filing indicates that the issuance of the note falls under the exemption from registration as per Section 4(a)(2) of the Securities Act of 1933, as amended, regarding unregistered sales of equity securities.

Investors and stakeholders can access the full Form 8-K filing on the Securities and Exchange Commission’s website for a comprehensive overview of Spark I Acquisition Corporation’s recent financial activities.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Spark I Acquisition’s 8K filing here.

Spark I Acquisition Company Profile

Spark I Acquisition Corporation does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar combination with one or more businesses or assets. The company was incorporated in 2021 and is based in Palo Alto, California.