Ares Acquisition Corporation II Reports $25.99 Million Net Income for 2024

Ares Acquisition Corporation II, a blank check company formed in March 2021, reported net income of $25.99 million for the year ended December 31, 2024, compared to $16.92 million in 2023. This increase resulted from higher investment income on assets held in the Trust Account, offset by increased general and administrative expenses. Specifically, investment income totaled $27.76 million in 2024 and $18.04 million in 2023, while general and administrative expenses were $1.78 million and $1.12 million, respectively. The company has not yet generated any operating revenue.

As of December 31, 2024, Ares Acquisition Corporation II held $975,319 in its operating bank account and $550.8 million in its Trust Account, invested in U.S. government securities with maturities of 185 days or less. The company's total assets were $551.9 million, while total liabilities were $23.24 million, primarily consisting of deferred underwriting and advisory fees and overfunding loans. The company's shareholders' deficit was $22.04 million. The company's Class A ordinary shares, totaling 50 million, are subject to possible redemption, and are classified as temporary equity.

Significant developments during the year included the completion of the company's initial public offering (IPO) on April 25, 2023, raising gross proceeds of $500 million. Simultaneously, a private placement of 14.3 million warrants generated $14.3 million in proceeds. The company incurred $28.55 million in offering costs, including $17.5 million in deferred underwriting commissions. The company also received $5 million in overfunding loans from its sponsor. As of March 6, 2025, 50 million Class A ordinary shares and 12.5 million Class B ordinary shares were issued and outstanding.

Ares Acquisition Corporation II is currently seeking shareholder approval to extend its deadline for completing an initial business combination from April 25, 2025. If the extension is not approved, or if a business combination is not completed by the original deadline, the company will redeem its outstanding Class A ordinary shares at a pro rata share of the funds held in the Trust Account, less taxes payable. The company's outlook is contingent upon successfully completing a business combination within the extended timeframe or by the original deadline. The company's independent registered public accounting firm expressed substantial doubt about its ability to continue as a going concern due to the mandatory liquidation of the Trust Account if a business combination is not completed.