How will the existing overallotment option units be treated in the separation process?

The 3.3 million “overallotment” units that the underwriters received in the IPO are treated exactly like the other 22 million IPO units in the separation. When the Company initiates the split on or about 15 August 2025, holders of those overallotment units may elect to break each unit into a stand‑alone Class A ordinary share (trading as PACH) and a stand‑alone warrant (trading as PACHW). If a holder does not submit a separation election, the unit—including the overallotment portion—will continue to trade on Nasdaq under the combined ticker PACHU. No fractional warrants will be created; only whole‑warrant positions will be issued, so the overallotment warrants will be rounded down to the nearest whole warrant when the split is executed.

From a trading perspective, this means the underwriters’ overallotment shares will become immediately liquid on two separate symbols, offering distinct price discovery for the equity and the warrant. Anticipate a short‑term spread between PACH and PACHU as market participants re‑price the equity component, and a similar re‑allocation of demand into PACHW. Technicals on PACHU may show a breakout or volatility spike around the split date, while PACH could inherit the bulk of the pre‑split price action. For fundamentals, the overallotment units do not alter the capital structure—they simply represent the same economic exposure now displayed on two tickers—so valuation ratios (e.g., EV/EBITDA) remain unchanged.

Actionable insight:

- If you hold or can acquire the overallotment units: Submit a separation election before the cut‑off to capture the warrant’s upside (especially if you are bullish on the SPAC’s post‑business‑business prospects) and to trade the equity on a dedicated ticker with tighter spreads.

- If you prefer a single‑ticket exposure: Keep the units un‑separated and trade PACHU; be prepared for higher bid‑ask spreads and potential liquidity constraints as the market transitions.

- Short‑term trade set‑up: Consider a PACHU → PACH + PACHW conversion trade on the split day—sell the combined unit short and go long the separated components—to profit from any temporary mispricing between the two new securities.