Launchpad Cadenza Acquisition Corp I FORM 10-Q for the Quarterly Period Ended March 31, 2026
Launchpad Cadenza Acquisition Corp I, a special purpose acquisition company, filed its Form 10-Q for the quarterly period ended March 31, 2026. The company reported a net loss of $1.4 million for the quarter, primarily due to expenses related to its search for a target business. As of March 31, 2026, the company had $23.4 million in cash and cash equivalents, and a total of 23 million Class A ordinary shares and 5.75 million Class B ordinary shares outstanding. The company has not yet identified a target business to acquire, but is actively pursuing opportunities.
Overview
Launch Acquisition Corp. is a blank check company incorporated in the Cayman Islands on June 27, 2025 for the purpose of effecting a business combination. The company’s sponsor is Launch Sponsor LLC, and it is focusing its efforts on technology and software infrastructure companies operating within the blockchain, financial technology (fintech), and digital assets ecosystems.
Launch Acquisition Corp. completed its initial public offering (IPO) on December 19, 2025, raising $230 million by selling 23 million units, with each unit consisting of one Class A ordinary share and one-third of one public warrant. Simultaneously, the company completed a private placement of 4,116,667 private placement warrants to the sponsor and Cantor, raising an additional $6.175 million.
The net proceeds from the IPO and private placement were placed in a trust account, to be used to complete a business combination within 24 months from the closing of the IPO (by December 19, 2027). If the company is unable to complete a business combination within this time frame, it will be required to redeem the public shares and liquidate.
Financial Performance
Since its inception on June 27, 2025 through March 31, 2026, Launch Acquisition Corp. has not engaged in any operations or generated any revenues. Its only activities have been organizational activities and those related to the IPO and identifying and evaluating potential acquisition targets.
For the three months ended March 31, 2026, the company had net income of $1,726,095, which consisted of $2,033,498 in interest earned on the marketable securities held in the trust account and $174 in interest earned on the operating account, partially offset by $307,577 in general and administrative expenses.
As of March 31, 2026, the company had $232,265,476 in marketable securities held in the trust account (including $2,265,476 in interest income) and $907,573 in cash held outside the trust account.
Liquidity and Capital Resources
Launch Acquisition Corp. has used the funds held outside the trust account primarily to identify and evaluate target businesses, perform due diligence, and structure, negotiate, and complete a business combination.
The company’s liquidity needs through March 31, 2026 have been satisfied through a $25,000 contribution from the sponsor in exchange for founder shares, a loan pursuant to the IPO promissory note, and the net proceeds from the IPO and private placement held outside the trust account.
Management believes the company will have sufficient funds to execute its business strategy. However, there is a possibility that a business combination might not be completed within the 24-month period from the IPO. If that were to occur, the company would trigger an automatic winding up, dissolution, and liquidation.
To mitigate the risk of being deemed an investment company under the Investment Company Act, the company may instruct the trustee to liquidate the investments held in the trust account and hold the funds in cash or an interest-bearing demand deposit account.
Contractual Obligations
Launch Acquisition Corp. has the following key contractual obligations:
Administrative Services Agreements: The company reimburses two affiliates a total of $25,000 per month for office space, utilities, and administrative support.
Underwriting Agreement: The underwriters are entitled to a 2% cash underwriting discount and a deferred fee of 4.5% of the gross IPO proceeds held in the trust account, plus 6.5% of the gross proceeds from the over-allotment option, payable upon completion of the initial business combination.
Registration Rights Agreement: The holders of founder shares, private placement warrants, and any private placement-equivalent warrants issued in connection with working capital loans are entitled to registration rights.
Letter Agreement: The sponsor, directors, and officers have agreed to certain transfer restrictions on their securities and have waived their rights to liquidating distributions from the trust account if the company fails to complete a business combination within the 24-month period.
Outlook
Launch Acquisition Corp. is an early-stage and emerging growth company, and as such, it is subject to all the risks associated with such companies. The company expects to continue to incur significant costs in the pursuit of its acquisition plans, and there can be no assurance that its plans to complete a business combination will be successful.
Management has determined that the company’s liquidity condition raises substantial doubt about its ability to continue as a going concern. However, the company intends to complete the initial business combination before the end of the 24-month combination period. If it is unable to do so, it will trigger an automatic winding up, dissolution, and liquidation.
