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

I’m putting together this guide to help you understand how Horizon Space Acquisition II Corp. (HSPT) performed this year. My goal is to break down their recent filings into plain English so you can decide if this company fits your investment strategy.

1. What does this company do?

Horizon Space is a "blank check" company, also known as a SPAC. They don't make products or provide services. Instead, they raised money from investors to find and buy a private company and take it public. Think of them as a temporary search vehicle. Their goal is to complete a business deal within a set timeframe, or they must shut down and return the money to shareholders.

2. Major Update: They found a partner!

The biggest news is that the company is no longer just searching. On May 9, 2025, they signed a deal to merge with SL Bio Ltd., a life sciences company focused on developing new medical treatments.

After the deal closes, both companies will become part of a new parent company. This new entity expects to trade on the Nasdaq under a new ticker symbol. Shareholders will eventually own shares in this combined business, which plans to use the public markets to grow SL Bio’s clinical pipeline.

3. Financial performance and health

Because they are a shell company, they don't have "revenue" or "profit" like a typical business. Their finances focus on managing the $69 million they raised from their initial public offering (IPO) to fund the search and the merger.

• The "Burn": They have no income and have lost money since they started. This is due to administrative, legal, and audit costs. They report an accumulated deficit of about $4.2 million.
• Funding the Search: To keep running, they relied on $1.5 million in interest-free loans from their leadership team.
• The PIPE Financing: To ensure the new company has enough cash, they secured $7.8 million from private investors. These investors agreed to buy shares when the merger closes.

4. Major wins and challenges

• The Win: They signed the merger agreement with SL Bio and received strong shareholder approval in February 2026.
• The Challenge: Many investors chose to "redeem" their shares. This means they asked for their money back from the trust account instead of staying for the merger. Over 6.7 million shares were turned in. This drained the trust account, leaving only about $2.1 million. Because of this, the company now relies heavily on the $7.8 million in private funding to close the deal.

5. Key risks

Investing in a SPAC is different from buying a standard stock:

• Redemption Risk: When many investors redeem their shares, the company has less cash. This may limit their ability to fund research or grow without issuing more shares, which reduces your ownership percentage.
• The "Clock" Pressure: The company faced strict deadlines. To avoid shutting down, they paid to extend their search window multiple times. Each extension cost $200,000, which increased the total cost of the deal.
• Uncertainty: There is no guarantee the new company will succeed. Life sciences companies face high risks, such as the difficult and expensive process of getting FDA approval.

6. Future outlook

The company expects to close the SL Bio merger in the second quarter of 2026. They are now finalizing the transition and ensuring they meet the $10 million minimum cash requirement. They are also working to meet all Nasdaq listing standards so trading can begin immediately after the merger.

7. Bottom line

Horizon Space has moved from a "search" phase to a "merger" phase. If you are interested in this stock, you are betting on the success of SL Bio Ltd. and the new company’s ability to navigate the life sciences market with limited cash. Carefully weigh the potential of SL Bio’s medical pipeline against the risks of having fewer shares and less cash than originally planned.

Investor Tip: Before making a decision, check the company's latest 8-K filings on the SEC website. These documents contain the most recent updates on the merger closing status and any changes to the $10 million cash requirement, which is the most critical hurdle for this deal to cross the finish line.