Launch One Acquisition Corp. Reports Net Income of $2.6M, Working Capital of $1.1M in Q3 2024

Launch One Acquisition Corp., incorporated on February 21, 2024, is classified as a shell company focused on executing a business combination. The company completed its Initial Public Offering (IPO) on July 15, 2024, raising gross proceeds of $230 million by issuing 23 million units at $10.00 each. Additionally, it sold 6 million private placement warrants for $6 million. As of September 30, 2024, the Trust Account held $232.8 million in marketable securities, primarily U.S. Treasury Bills.

For the three months ended September 30, 2024, Launch One reported a net income of $2.6 million, primarily from interest earned on marketable securities ($2.4 million) and an unrealized gain on those securities ($388,318). The company incurred general and administrative costs of $189,929 during this period. Since its inception, the net income totaled $2.6 million, with general and administrative costs amounting to $230,317.

As of September 30, 2024, the company had 23 million Class A ordinary shares and 5.75 million Class B ordinary shares outstanding. The basic net income per share for both Class A and Class B ordinary shares was $0.10 for the three months ended September 30, 2024, and $0.20 for the period from inception through the same date. The diluted net income per share was also $0.10 for the three months and $0.19 for the inception-to-date period.

The company reported a working capital of $1.1 million and had cash of $953,928 available outside the Trust Account for operational expenses and due diligence on potential target businesses. It may seek additional capital through loans or investments from its Sponsor or third parties if a business combination is not consummated within the required timeframe.

Launch One has no long-term debt or significant liabilities, apart from a monthly agreement of $12,500 for administrative support services. The company has not generated any revenues as of the reporting date, focusing instead on organizational tasks and preparing for its business combination. The management has indicated that there are no critical accounting estimates to disclose and that the recently issued accounting standards will not materially affect the financial statements.

The company faces substantial doubt about its ability to continue as a going concern if a business combination is not completed within the stipulated 24-month window following the IPO.