Siddhi Acquisition Corp (Cayman Islands)

Siddhi Acquisition Corp (Cayman Islands) Annual Report: Key Insights for Investors

Business Overview (What the Company Does) Imagine a company formed with one clear mission: to find and acquire a promising business, then take it public. That's Siddhi Acquisition Corp, a Special Purpose Acquisition Company (SPAC), often known as a "blank check company." It raises capital through an Initial Public Offering (IPO) to acquire or merge with an existing private company, thereby taking it public. Unlike traditional operating companies, Siddhi Acquisition Corp does not have its own products, services, or ongoing business operations. The company plans to use its experienced leadership team's network and expertise to find and acquire a promising company, focusing primarily on consumer brands and food technology.

Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)

• Overview: Siddhi Acquisition Corp formed on July 5, 2024, to pursue a merger or acquisition with another business (a "Business Combination"). This annual report covers the year ended December 31, 2025. A key milestone during this period was its successful IPO on April 2, 2025. As of this report, the company actively searches for a suitable acquisition target and has not yet identified or agreed to a Business Combination. The company's operations have been limited to its formation and IPO activities.

• Results of Operations: As a SPAC, Siddhi Acquisition Corp does not generate traditional operating revenue. Its primary activities include organizational tasks, completing its IPO, and searching for a business combination. For the period ended December 31, 2025, the company's financial results mainly show interest income from its trust account and general and administrative expenses related to its search for a target and public company compliance.

• Liquidity and Capital Resources: The company's main source of cash comes from its IPO and a private placement. It raised $276 million in its IPO by selling 27.6 million units at $10 each. Its sponsor, Siddhi Sponsor LLC, contributed an additional $3.38 million by purchasing 338,000 units in a private placement. By April 2, 2025, a total of $277.38 million was deposited into a special "trust account." These funds are legally restricted; the company can only use them to fund a future acquisition or, if no acquisition occurs, return them to public shareholders. A small portion of IPO proceeds, typically $1 million to $2 million, is usually released from the trust for working capital. This covers operating expenses (like legal, accounting, and administrative fees) while the company searches for a target. Any interest earned on the trust account may also cover operating expenses or be released to the company. The company's continued existence depends on its ability to complete a business combination within the set timeframe or to liquidate and return funds to shareholders.

Financial Performance (Revenue, Profit, Year-over-Year Changes) As the MD&A explains, Siddhi Acquisition Corp does not generate traditional revenue or profit from operations. Its financial performance primarily reflects interest income from the trust account and general and administrative expenses. Since its IPO was in April 2025, year-over-year changes are not applicable for this reporting period.

Financial Health (Debt, Cash, Liquidity) As the MD&A's "Liquidity and Capital Resources" section highlights, the company's financial health is strong due to the $277.38 million held in a restricted trust account. This provides substantial cash for a future business combination. The company also accesses a small amount of unrestricted cash for operating expenses. As a SPAC in its initial phase, Siddhi Acquisition Corp generally carries no significant debt.

Risk Factors (Key Risks) Investing in a SPAC like Siddhi Acquisition Corp involves unique risks, different from those of traditional operating companies:

1. Failure to Complete a Business Combination: The most significant risk is the company's limited timeframe, typically 18 to 24 months from its IPO date (April 2, 2025), to complete an acquisition. If it fails to do so, it must liquidate, returning trust account funds to public shareholders, but without any interest that may have covered operating expenses.
2. Shareholder Redemptions: Even if the company identifies a target, public shareholders can redeem their shares for cash from the trust account if they disapprove of the proposed acquisition. High redemption rates can significantly reduce available capital for the deal, potentially jeopardizing the acquisition or forcing the company to seek alternative financing.
3. Competition for Targets: The SPAC market is increasingly competitive, with many SPACs competing for a limited number of attractive private companies. This competition could lead to overpaying for an acquisition or make finding a suitable target difficult.
4. Dilution: Investors face potential dilution from warrants (which allow holders to buy shares at a set price) and from the "founder shares" held by the sponsor, typically representing 20% of outstanding shares post-IPO.
5. Regulatory Environment: Increased SEC scrutiny of the SPAC market could lead to new regulations, accounting changes, and a cooling market sentiment. These factors might impact the company's ability to complete a deal or affect its valuation.
6. Lack of Operating History: As a newly formed entity, Siddhi Acquisition Corp lacks operating history or an established business model. Its future success depends entirely on successfully identifying and integrating an acquired business.
7. Dependence on Management: The company's success heavily relies on its management team and advisors' expertise, judgment, and network to identify and execute a value-creating acquisition.

Future Outlook (Guidance, Strategy) Siddhi Acquisition Corp's future hinges entirely on successfully identifying, evaluating, negotiating, and completing its initial Business Combination within the stipulated timeframe. The management team actively pursues this process, leveraging their specialized experience in consumer brands and food technology. The ultimate goal is to acquire a private company with strong growth potential, creating value for shareholders. Investors should closely monitor progress toward an acquisition announcement and the terms of any proposed deal.

Competitive Position As a SPAC, Siddhi Acquisition Corp does not compete on products or services. Its competitive position depends on its ability to attract and secure a desirable acquisition target. As noted in the Risk Factors, the SPAC market is highly competitive, with numerous SPACs competing for a limited pool of attractive private companies. The company's competitive advantage stems from the expertise and network of its leadership team, including:

• Brian Finn (Chairman): Over 40 years of investment experience, including leadership roles at Credit Suisse and various board positions. He also chairs Siddhi Holdings, a growth equity firm focusing on consumer brands and food tech.
• Sam Potter (CEO and Director): Experience in financial consulting and early-stage investment firms, also from Siddhi Holdings.
• Harley Rollins (CFO): Strong background in financial accounting and consulting.
• Advisory Team: Experienced advisors, including Stefan Selig (former Undersecretary of Commerce), Melissa Facchina (Managing Partner at Siddhi Holdings), Steven Finn (co-founder of Siddhi Holdings), and Amy Salerno (Co-Managing Partner and CFO of Siddhi Holdings). This collective expertise helps source and evaluate potential deals in its target sectors.