Galata Acquisition LATA

Galata Acquisition Corp. II is a blank check company formed to effect a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. The company has not commenced any operational activities and does not generate any revenue at present. Its primary focus is identifying a target in the energy, financial technology, real estate, and technology sectors, although it may consider opportunities in any industry. The management team intends to use the proceeds held in trust to complete an initial business combination within the prescribed period. The company raised capital through an initial public offering and a concurrent private placement, placing the proceeds in a trust account earmarked for a future business combination.

Galata Acquisition Corp. II has not generated any operating revenue since its formation and does not anticipate earning revenue until it consummates an initial business combination. The company’s current cash resources consist of the proceeds from its initial public offering and private placement, which are held in trust and may be used to fund a transaction, pay related expenses, or be returned to shareholders if no combination is completed.

As a special purpose acquisition company, Galata Acquisition Corp. II competes with numerous other blank check entities, private equity firms and strategic acquirers seeking to partner with private businesses. Its competitive advantages include the experience of its management team in sourcing and executing transactions, the potential access to resources from its affiliate Callaway Capital Management, and the substantial amount of capital held in trust that can be deployed for a transaction. The company also benefits from the structural advantages of a SPAC, such as the ability to offer target businesses a faster and less costly path to becoming publicly traded compared with a traditional initial public offering. The company must satisfy Nasdaq’s 80% test, requiring the business combination to have an aggregate fair market value of at least 80% of the trust account assets, and obtain approval from a majority of independent directors. These requirements shape its deal sourcing and structuring decisions.

Galata Acquisition Corp. II does not serve traditional customers; its stakeholders are the public shareholders who purchased its units and the private companies that may become its business combination partners. The company provides shareholders with the opportunity to redeem their shares for a pro rata share of the trust account if they do not approve a proposed combination, and it offers target businesses a vehicle to access public markets, raise capital and provide liquidity to existing owners.