What impact will the $11.50 exercise price of the redeemable warrants have on potential dilution and upside for investors?

The $11.50 exercise price sits above the $10.00 IPO price of the Class A ordinary shares, which means the warrants are initially “out‑of‑the‑money.” As long as the stock trades below $11.50, holders cannot profit from exercising, so there is no immediate dilution and the existing shareholders keep their ownership ratios intact. This caps short‑term upside‑dilution risk and lets the market price the equity on pure fundamentals rather than on an impending secondary offering.

If the stock does break above $11.50, each whole warrant (there are 10 million whole warrants because each unit contains half a warrant) can be converted into a new share. Full conversion would add ≈10 million shares to the float, expanding the share base by roughly 5 % of a post‑conversion market cap of about 200 million shares (20 million units × 1 share per unit + 10 million new shares). The dilution impact would be modest but noticeable; the new supply could pressure the price unless offset by sufficient demand for the additional capital or by the value‑creation from the eventual acquisition target.

From a trading standpoint, the $11.50 level is a key technical trigger:

• Below $11.50 – warrants behave like a leveraged call with minimal dilution risk; the warrant premium can be captured by buying the warrant and holding the share for a potential upside if the stock climbs toward $11.50.
  
• At/above $11.50 – anticipate a conversion wave, a rise in float, and possible short‑covering or selling pressure. Traders can position long the share while monitoring for increased volatility and may consider a partial hedge (e.g., short the warrant) once conversion looks imminent.
  

In short, the $11.50 exercise price provides a protective ceiling against early dilution while still offering investors a low‑cost levered upside. The moment the market price breaches that level, the upside from warrant conversion will be offset by the dilution of existing holdings, so the stock’s trajectory around $11.50 should be watched closely for both a potential catalyst and a supply‑demand shift.