Galata Acquisition Corp. II Annual Report - How They Did This Year

I’ve put together this guide to help you understand how Galata Acquisition Corp. II performed this year. My goal is to explain the company's filings in plain English so you can decide if it fits your investment goals.

1. What does this company do?

Galata Acquisition Corp. II is a "Special Purpose Acquisition Company," or SPAC. It is a "blank check" company that does not sell products or services. Instead, it raised money through an IPO on September 22, 2025, to buy an existing private company and take it public.

The company raised $172.5 million by selling 17.25 million units at $10.00 each. Each unit included one share and half of a warrant to buy more shares later at $11.50. When you invest here, you are betting on the management team’s ability to find and buy a company, likely in the financial or fintech sectors.

2. Financial performance

Because Galata is a SPAC, it functions as a vault holding cash. As of December 31, 2025, the company held $172.5 million in a trust account, invested in safe U.S. government securities. The market value of its shares was about $171.8 million at year-end. The company uses interest earned on this cash to pay for administrative costs and taxes.

3. Major wins and challenges

• The Big Win: The company successfully launched its IPO on September 22, 2025, raising $172.5 million to fund its search for a business acquisition.
• The Challenge: The company is currently in the "search phase." They have until September 22, 2027, to find a partner, sign a deal, and get shareholder approval. If they fail to complete a deal by this deadline, they must return the money in the trust to shareholders.

4. Financial health

The company is well-funded for its goal. The $172.5 million in the trust is protected and cannot be used for daily operating expenses. Instead, the company uses a $1.5 million loan from its sponsor to cover legal and accounting bills. By year-end, they had used about $350,000 of that loan. They are currently maintaining a lean budget to stay compliant while researching potential targets.

5. Key risks

Investing in a SPAC carries unique risks:

• The "No-Deal" Risk: If they don't find a company by September 22, 2027, they must close. You would get your share of the trust back, which might be less than what you paid if the stock is trading at a premium.
• The "Bad-Deal" Risk: There is no guarantee the company they pick will succeed. If they overpay or choose a weak business, your investment could lose value.
• Conflicts of Interest: The management team has other business interests, which could distract them or create conflicts when negotiating deals.
• The "Founder" Gap: The sponsors bought their shares for a nominal amount. Because their cost basis is so low, they have a strong incentive to finish a deal to avoid losing their investment, even if the deal terms are not ideal for public shareholders.

6. Future outlook

The plan for the year ahead is to identify and merge with a target company. Management is currently screening businesses with strong teams and scalable models. Keep an eye out for announcements regarding a "Business Combination," as these filings will contain the specific financials and terms of any proposed deal.

Investor Tip: Since this is a SPAC, your investment is essentially a bet on the management team's ability to find a high-quality company at a fair price. Before making a decision, consider whether you trust the team's track record and if you are comfortable with the two-year timeline for them to find a partner.