Overview

Horizon Space Acquisition II Corp. is a blank check company formed in the Cayman Islands on March 21, 2023, with the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, or reorganization with one or more businesses or entities. The company has not generated any revenue and has incurred losses since inception due to formation and operating costs. Horizon Space Acquisition II Corp. has relied on the proceeds from its initial public offering (IPO) and private placement to fund its operations, as well as loans from the Sponsor, officers, directors, or their affiliates.

Financial Performance

For the three months ended March 31, 2025, Horizon Space Acquisition II Corp. had a net income of $472,592, which included $726,071 in interest and dividend income from investments held in trust, offset by $253,479 in formation and operating expenses. In comparison, for the three months ended March 31, 2024, the company had a net loss of $3,106, which consisted solely of formation and operating expenses.

As of March 31, 2025, the company had cash of $364,776 and working capital of $197,396. The company intends to use the net proceeds from the IPO, including the funds held in the Trust Account, to acquire a target business and pay related expenses. If the company’s estimates of the costs of due diligence and negotiating the initial business combination are less than the actual amount necessary, or if the interest earned on the Trust Account is less than expected, the company may have insufficient funds to operate its business prior to the initial business combination.

Strengths and Weaknesses

A key strength of Horizon Space Acquisition II Corp. is its significant ties to China, which may allow it to pursue opportunities in China (including Hong Kong and Macau). However, this also presents a potential weakness, as the company may face challenges and uncertainties associated with operating in the Chinese market.

The company’s reliance on the Sponsor, officers, directors, or their affiliates for loans and funding is a potential weakness, as it may limit the company’s independence and flexibility in pursuing acquisition opportunities.

Outlook

Horizon Space Acquisition II Corp. has entered into a business combination agreement with SL Bio Ltd., a Cayman Islands-based company developing cellular and gene therapies. The successful completion of this business combination is crucial for the company’s future, as it will determine the direction and prospects of the combined entity.

If the company is unable to complete a business combination within the Combination Period (by November 18, 2025, unless further extended), its board of directors would proceed to commence a voluntary liquidation and dissolution. This uncertainty regarding the company’s ability to continue as a going concern is a significant risk factor that investors should consider.

Overall, Horizon Space Acquisition II Corp. is a blank check company that is currently in the process of pursuing a business combination with SL Bio Ltd. The company’s financial performance, strengths, weaknesses, and future outlook are heavily dependent on the successful completion of this transaction.