Rising Dragon Acquisition (RDAC) investment analysis: Betting on a SPAC (blank-check) merger event — with the HZJL Cayman business combination, the Trust balance / closing outcome after large redemptions becomes the key variable

Rising Dragon Acquisition (RDAC) investment analysis: Betting on a SPAC (blank-check) merger event — with the HZJL Cayman business combination, the Trust balance / closing outcome after large redemptions becomes the key variable

※ Rising Dragon Acquisition Corp. (NASDAQ: RDAC) is not a traditional operating business with ongoing revenue and earnings. It is a SPAC (blank-check company) designed to take a target company public via a business combination (De-SPAC). RDAC historically trades through a structure that can include RDACU (Units) – RDAC (Common) – RDACR (Rights), and the Rights are disclosed as converting into 1/10 of a common share per Right upon completion of a business combination.
RDAC is currently pursuing a business combination with HZJL Cayman Limited (HZJL). At the November 20, 2025 shareholder meeting (EGM), the related proposals were approved, and the company disclosed that approximately 5,715,609 shares were submitted for redemption in connection with the meeting. 😅

 

📖 Company Introduction

Rising Dragon Acquisition (RDAC) is a SPAC formed to execute a business combination (merger, share exchange, asset acquisition, etc.). The core question for any SPAC investment is simple: Which target, under what terms, and does the transaction actually close? RDAC should be analyzed primarily through that lens rather than as a typical “operating company.”

 

🧾 Company Overview

• Company / Ticker: Rising Dragon Acquisition Corp. / RDAC
• Nature: Cayman Islands–based SPAC (blank-check company)
• Trading structure: RDACU (Units) / RDAC (Common) / RDACR (Rights)
• Rights conversion: At closing, 1 Right = 1/10 common share (0.1 share)
• Active transaction: Business combination with HZJL Cayman Limited
• Deal structure (high-level): RDAC merges with its subsidiary Xpand Boom Technology (PubCo), then PubCo’s merger subsidiary merges with HZJL so that HZJL becomes a wholly owned subsidiary of PubCo (two-step structure).
• EGM outcome (2025-11-20): Quorum met, key proposals approved, and ~5,715,609 shares were submitted for redemption.

 

🏗️ Business Model (What They Do)
1) RDAC’s SPAC model (Sponsor + Trust mechanics)

• IPO proceeds are held in a Trust account, while the SPAC works toward completing a business combination within a defined timeline.
• For investors, redemption rights can function as a form of downside protection. However, large redemptions can also reduce the cash available at closing and meaningfully reshape the post-closing share float and trading dynamics.

2) What RDACR “Rights” mean in practice

• Rights are structured to convert into equity at deal completion (0.1 share per Right).
• If the SPAC fails to close and liquidates, Rights may expire worthless (often without Trust distributions), making them structurally asymmetric relative to redeemable common shares.

 

🚀 Bullish

• A defined deal path exists: The HZJL Cayman transaction has progressed through disclosed steps, including shareholder approvals at the EGM.
• Event-driven upside potential: Closing, ticker changes, listing continuity, and finalized terms can trigger price discovery events typical for SPACs.
• Rights “optionality”: If closing occurs, Rights convert into shares, creating incremental equity exposure versus common-only holdings (subject to structure and liquidity realities).

728x90

⚠️ Downside factors (Bearish)

• Large redemption submissions: The company disclosed that 5,715,609 shares were submitted for redemption in connection with the 2025-11-20 EGM. Depending on the final net redemptions (after any permitted withdrawals), the post-closing float and volatility can change dramatically.
• Structural risk in Rights: If the business combination fails and liquidation occurs, Rights can become worthless, so investors must evaluate “deal failure” risk before focusing on upside scenarios.
• Deadline / extension dependency: SPACs operate under deadlines; if extensions fail or conditions are not met, liquidation risk becomes real.
• Microcap liquidity dynamics: Wider spreads, thin order books, and abrupt spikes/drawdowns are common—sometimes execution risk matters more than valuation.

 

💵 Financial/Transaction Snapshot

• Structure reminder: RDACU (Units), RDAC (Common), RDACR (Rights)
• Rights conversion: 1 Right = 0.1 common share at closing
• 2025-11-20 EGM highlights: Voting participation met quorum requirements; proposals passed; ~5,715,609 shares submitted for redemption
• Price behavior: SPACs can move more on filings and flow (redemptions/float changes) than on fundamentals—risk controls matter.

 

🔮 Checkpoints & Catalysts

• (1) Official “Closing” announcement: Watch for definitive closing disclosures and any schedule adjustments (SEC filings / press releases).
• (2) Final net redemptions: Submitted redemptions can sometimes be withdrawn before closing; the final figure is what matters for float and cash.
• (3) Post-merger structure (PubCo) and listing continuity: Confirm the post-combination share structure, charter terms, and exchange compliance.
• (4) Target disclosure quality (HZJL): Monitor the level of financial and operational disclosure (revenue, customer metrics, margins) and any governance/regulatory risks implied by the corporate structure.

 

📈 Technical perspective (simple)

For SPACs like RDAC, filings, timing, redemptions, and closing often matter more than chart patterns. In practice, it is safer to use limit orders, staged sizing, and conservative position limits, especially around key event dates where gaps and slippage can be severe.

 

💡 Investment Insights (Summary)

RDAC’s outcome is driven by three variables:

1. Does the HZJL business combination actually close?
2. After large redemptions, what does the Trust / cash situation look like?
3. How does the post-merger PubCo structure affect float, liquidity, and volatility?
   Rather than applying a traditional growth-stock framework (revenue multiples, long-term margin models), RDAC is better handled with an event-driven checklist that tracks closing conditions, redemption outcomes, and final merger terms.

 

❓ FAQs

Q1. What kind of company is RDAC?
A. RDAC is a SPAC (blank-check company) formed to complete a business combination and take a target public.

Q2. What are RDACR “Rights”?
A. Rights are disclosed as converting into 1/10 of a common share per Right upon completion of the business combination. If the SPAC liquidates, Rights may expire worthless.

Q3. What is the most important near-term checkpoint?
A. The 2025-11-20 EGM disclosed ~5,715,609 shares submitted for redemption. The final net redemption number and the official closing disclosure are the key near-term drivers.