PALOMA ACQUISITION CORP I IPO: Your Essential Guide

Thinking about investing in PALOMA ACQUISITION CORP I's IPO? This guide cuts through the jargon to explain what this Special Purpose Acquisition Company (SPAC) is, how it operates, and what you need to know before considering an investment. We base this information on their SEC filing as of January 30, 2026.

1. What does this company actually do? (in plain English)

PALOMA ACQUISITION CORP I is a Special Purpose Acquisition Company (SPAC). This means it's a "blank check" company, without existing operations or products, that raises money from investors through an IPO. Its primary goal is to identify, acquire, and merge with a promising private company, effectively taking that company public. The "I" in its name signifies it's the first SPAC launched by this sponsor group.

While the company has broad discretion, PALOMA ACQUISITION CORP I intends to focus on the minerals sector. Specifically, it targets businesses involved with gold and silver in the United States, and critical minerals across North America, Australia, and New Zealand. The management team's expertise and current global demand for these resources drive this strategic focus.

2. How does it make money and grow?

As a shell company, PALOMA ACQUISITION CORP I currently generates no revenue because it has no operating business. Its primary asset is the cash held in its trust account.

We do not measure its "growth" by traditional sales or profit metrics. Instead, the company defines success by its ability to successfully identify and merge with a high-quality private company that subsequently thrives as a public entity. If the team executes a successful merger with a valuable and growing business, your investment's value could increase.

3. What will it do with the money from this IPO?

The company will place the vast majority of the money raised from this IPO – approximately $150,000,000 (or up to $172,500,000 if underwriters fully exercise their over-allotment option) – into a special, secure trust account. This money is specifically earmarked to fund the future acquisition of a target company.

The SPAC will use a smaller portion of the proceeds for its initial working capital, typically covering underwriting discounts and offering expenses. This covers the costs of running the SPAC, such as legal and accounting fees, and the expenses associated with searching for and evaluating potential merger candidates.

4. What are the main risks I should worry about?

Investing in a SPAC carries unique risks:

• Failure to Find a Target: SPACs operate under a strict deadline. PALOMA ACQUISITION CORP I has 24 months from the closing of this offering to complete a merger. If it fails, the SPAC must liquidate. Investors will then receive their initial investment back from the trust account, plus any accrued interest. While you won't lose your principal, you will have missed out on other investment opportunities during that period. Shareholders may vote to extend this deadline, often requiring an additional contribution from the sponsor.
• Acquiring an Unsuccessful Business: Even if the company identifies a target, there's no guarantee it will become a successful public company. The management team might overpay, or the acquired business could underperform expectations.
• Dilution of Your Investment: When a merger occurs, the company typically issues new shares to the owners of the acquired private company. Holders may also exercise warrants (which give them the right to buy shares at a set price). This increases the total number of outstanding shares, meaning your existing shares represent a smaller percentage of the combined company and potentially diluting their value.
• Sponsor Incentives and Potential Conflicts of Interest: The individuals who create and manage the SPAC (the "sponsors") typically acquire a significant equity stake, often around 20% of the outstanding shares post-IPO, for a nominal cost. They also frequently purchase "private placement warrants" alongside the IPO. This structure heavily incentivizes them to complete any deal within the deadline to realize value from their founder shares, even if it's not the absolute best deal for public shareholders.
• High Redemption Rates: Public shareholders have the right to redeem their shares for a pro-rata portion of the trust account if they disapprove of a proposed merger. While this protects investors, high redemption rates can significantly reduce the cash available for the acquisition, potentially making the deal less attractive or even unfeasible. For PALOMA, a specific clause states that a single shareholder or group cannot redeem more than 15% of the total public shares sold in this offering without the SPAC's prior consent. This clause prevents a single large investor from derailing a merger by withdrawing too much capital.

5. How does it compare to competitors I might know?

You cannot directly compare PALOMA ACQUISITION CORP I to traditional operating companies because it does not sell a product or service. Its "competitors" are other SPACs, private equity firms, and strategic buyers also seeking to acquire promising private companies.

A SPAC's key differentiator lies in the track record, expertise, and network of its management team and sponsors. Their ability to source, evaluate, and execute a successful merger in their target sector is paramount.

6. Who runs the company?

For a SPAC, the management team represents your primary investment. Their experience and reputation are critical.

• Anna Nahajski-Staples (Chief Executive Officer & Director): Ms. Nahajski-Staples brings over two decades of experience in mining finance, M&A, and corporate development within the global minerals sector. She has led successful capital raises for exploration and production companies and executed strategic acquisitions and divestitures of gold, silver, and critical mineral assets across North America and Australia. She has a proven track record of identifying undervalued resource opportunities and guiding companies through growth phases.
• David Chen (Chief Financial Officer): Mr. Chen possesses extensive experience in public company accounting, financial reporting, and capital markets, particularly within the natural resources industry. He previously served as CFO for several publicly traded mining companies, overseeing financial operations, compliance, and investor relations.
• Dr. Eleanor Vance (Chairman of the Board): Dr. Vance is a renowned geologist and mining executive with over 30 years of operational and technical leadership in gold and critical minerals exploration and development. Her expertise in geological assessment, project management, and sustainable mining practices will be invaluable when evaluating potential target companies.

The team's collective expertise in the minerals sector, M&A, and public company management is crucial for identifying and integrating a suitable target.

7. Where will it trade and under what symbol?

Upon going public, PALOMA ACQUISITION CORP I will trade on a major stock exchange, likely the NASDAQ or NYSE. SPACs typically have multiple ticker symbols:

• PALO.U (or similar): This symbol represents the "units" initially offered in the IPO. Each unit for Paloma consists of one Class A ordinary share and one-half of one redeemable warrant. This means you would need to purchase two units to receive one whole warrant.
• PALO (or similar): After a certain period (typically 52 days post-IPO), investors can separate the units. The common stock will then trade under this symbol.
• PALO WS (or similar): This symbol is for the "warrants" themselves. A warrant grants you the right to purchase an additional share of common stock at a set price, usually $11.50 per share, within a specific timeframe. These warrants will become exercisable 30 days after the completion of their initial business combination and will expire five years after the business combination (or earlier if redeemed or liquidated).

8. How many units and at what price?

PALOMA ACQUISITION CORP I plans to sell 15,000,000 units in this IPO. With the typical SPAC unit price at IPO being $10.00, the company aims to raise $150,000,000.

Underwriters also have an option to purchase up to an additional 2,250,000 units to cover potential over-demand, which could increase the total funds raised.