Lafayette Digital Acquisition Corp. I IPO - What You Need to Know

Hey there! If you’re thinking about investing in Lafayette Digital Acquisition Corp. I’s IPO, here’s the lowdown in plain English. No jargon, just the stuff you actually care about:

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1. What does this company actually do?

Lafayette Digital is a "blank check company" – a shell corporation with one goal: find a private tech, software, or digital services company to buy or merge with. They haven’t chosen a target yet. Your money funds the search, and if they find a good company, you own part of it. If they fail, they return most of the leftover cash to investors.

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2. How do they make money? Are they growing?

They don’t make money right now – they’re not a traditional business. Their success depends entirely on finding a good company to merge with. If they succeed, the combined company might grow, and your shares could rise in value. If they fail, you get most of your money back (minus fees).

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3. What will they do with the IPO money?

• Most cash ($10/share) goes into a savings account (a "trust") to fund a future merger.
• They have 24 months to find a deal. Shareholders can vote to extend the deadline indefinitely.
• If they miss the deadline, they shut down and return remaining cash (minus taxes and up to $100,000 in fees).
• During extensions, you can cash out your shares instead of waiting.

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4. What are the main risks?

• Blind bet: You’re trusting the team to pick a winner – but they haven’t revealed their target yet.
• Time crunch: No deal in 24 months = IPO fails.
• Fees eat returns: Even if they fail, you lose money to legal/operational costs.
• Team incentives: Executives get free "founder shares" if they close a deal, and might earn bonuses for finding a target. This could influence their decisions.
• Market risk: A recession or stock crash could tank your investment, even if they find a good company.

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5. How do they compare to competitors?

Similar to other SPACs (Special Purpose Acquisition Companies) like Churchill Capital. The difference? Lafayette’s focus on digital/tech companies and their leadership team’s background (though the filing doesn’t provide much detail about their track record).

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6. Who’s running the company?

• CEO Jernigan and CFO Robert Munro will receive free "founder shares" if they close a deal. The company didn’t specify how many shares each executive gets.
• Independent directors also get founder shares, but specific amounts weren’t disclosed.
• The filing lacks details about their past deal experience – you’ll need to research this separately.

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7. Where will it trade and under what symbol?

Planned to trade on Nasdaq under the ticker symbol ZKPU. Buy it like any other stock once it goes live.

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8. How many shares? What price?

25 million shares at $10 each, aiming to raise $250 million. Standard SPAC setup – most blank-check companies start at $10/share.

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The Bottom Line:

This is a bet on a leadership team with undisclosed deal experience, searching for an unknown company in the tech/digital space. SPACs are high-risk – you could lose fees if they fail, or gain big if they find the next hot startup.

Before investing, ask yourself:

• Am I comfortable not knowing what company I’m ultimately investing in?
• Does the team’s background (once I research it) inspire confidence?
• Can I afford to tie up money for 2+ years with no guaranteed return?

If this feels too fuzzy, there’s no shame in waiting until they announce a target company.

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Not financial advice. Always do your own research or talk to a financial advisor.

Note: Lafayette’s IPO filing provided limited details about leadership incentives and track record – something to consider before investing.