Monitor for announcement of a DeSPAC target; the note provides up to $300K in working capital to extend the SPAC's timeline. Conversion at $1.00/share implies a low conversion price relative to the IPO trust value, which could be dilutive to common holders post-deal but is standard SPAC sponsor financing.
Price Chart
Executive Summary
Black Hawk Acquisition Corp. (BKHA), a SPAC, issued a convertible promissory note to its sponsor for up to $300,000 to fund working capital and extension fees. The note bears 10% interest, matures upon a business combination or liquidation, and is convertible into post-deal common stock at $1.00 per share. This is a routine SPAC financing to extend the runway toward a DeSPAC transaction, with no new business combination announced.
Key Financial Metrics
Key Facts
- Issued convertible promissory note to sponsor Black Hawk Management LLC for up to $300,000.
- Note bears 10% interest per annum, commencing July 8, 2026, for one year.
- Principal due at closing of initial business combination (DeSPAC) or liquidation.
- Sponsor may elect cash repayment or convert principal into post-DeSPAC common stock at $1.00 per share.
- Proceeds used for working capital and extension fees to fund SPAC operations.
- Note is unsecured; sponsor waived claims against the trust account from the IPO.
Financial Impact
Up to $300,000 in new debt financing from sponsor, convertible at $1.00/share into post-business-combination equity.
Risk Factors
- No business combination announced; SPAC faces liquidation risk if no deal closes within available timeline.
- Conversion at $1.00/share could dilute post-DeSPAC common shareholders if the sponsor converts.
- 10% interest rate adds modest cash burn if the note is drawn and not converted.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 3 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001829126-26-009347 |
| Document: 0001829126-26-009347-index.html | 0001829126-26-009347 |
| Document: 0001829126-26-009347.txt | 0001829126-26-009347 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | 8-K | $5.12 | awaiting T+20 | — | $4.69 (−8.44%) |
Oct 7, 2026 19d ago | SC 13G/A | $13.00 | awaiting T+20 | — | $4.69 (−63.94%) |
Sep 24, 2026 4w ago | 8-K | $12.27 $5.40 | ▼ −55.99% | ▼ −54.51% | $4.69 (−61.79%) |
Sep 21, 2026 5w ago | 424B4 | $12.10 $4.14 | ▲ +65.79% | ▲ +65.23% | $4.69 (+61.26%) |
Sep 18, 2026 5w ago | EFFECT | $11.99 $6.01 | ▼ −49.87% | ▼ −50.08% | $4.69 (−60.90%) |
Sep 4, 2026 7w ago | S-4/A | $11.99 $12.28 | ▼ −2.42% | ▼ −1.82% | $4.69 (+60.90%) |
Aug 26, 2026 8w ago | 8-K | $11.85 $11.99 | ▲ +1.21% | ▲ +0.00% | $4.69 (−60.43%) |
Jun 11, 2026 19w ago | S-4/A | $11.89 $11.96 | ▼ −0.59% | ▲ +1.30% | $4.69 (+60.57%) |
US Market Status
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