Overview

Drugs Made In America Acquisition Corp. is a blank check company formed in the Cayman Islands on May 23, 2024. The company’s purpose is to merge, acquire, or combine with another business, with a focus on the pharmaceutical industry. The company completed its initial public offering (IPO) on January 29, 2025, raising $200 million by selling 20 million units at $10 per unit. Each unit consists of one ordinary share and one right to receive one-eighth of an ordinary share upon the completion of an initial business combination.

Simultaneously with the IPO, the company sold 400,000 private placement units to its sponsor, Drugs Made In America Acquisition LLC, at $10 per unit, raising an additional $4 million. The underwriters also exercised their over-allotment option in full, resulting in the sale of an additional 3 million units and 30,000 private placement units, raising a further $30.3 million.

After the IPO and private placements, the company had a total of $231.15 million held in a trust account, which will be used to fund the initial business combination. The company has up to 15 months (extendable to 21 months) to complete the initial business combination, after which it will redeem 100% of the public shares if a deal is not reached.

Results of Operations

Drugs Made In America Acquisition Corp. has not engaged in any operations or generated any revenue to date. The company’s only activities have been organizational, preparing for the IPO, and identifying a target company for an initial business combination.

For the three months ended March 31, 2025, the company had a net income of $1,254,543, which consisted of $1,585,468 in interest earned on the trust account, offset by $330,925 in general and administrative costs.

Liquidity and Capital Resources

As of March 31, 2025, the company had $923 in cash. Prior to the IPO, the company’s only source of liquidity was an initial purchase of ordinary shares by the sponsor and loans from the sponsor.

After the IPO and private placements, the company had a total of $231.15 million held in the trust account. The company intends to use these funds to complete the initial business combination. The company may also borrow up to $1.1 million from the sponsor in the form of working capital loans, which can be converted into private placement units.

The company incurred $8.9 million in transaction costs related to the IPO, including underwriting fees and other offering costs.

Going Concern

The company’s management has determined that the mandatory liquidation and dissolution if an initial business combination is not completed within the required timeframe raises substantial doubt about the company’s ability to continue as a going concern within one year after the date the financial statements are issued.

Contractual Obligations

The company has no long-term debt, capital lease obligations, or operating lease obligations. The only significant contractual obligation is the $10,000 per month payment to the sponsor for office space and administrative support, which will terminate upon completion of the initial business combination or the company’s liquidation.

The underwriters are also entitled to a cash underwriting discount of 0.5% of the gross IPO proceeds, as well as a deferred fee of 3% of the gross IPO proceeds, payable upon completion of the initial business combination. The company also agreed to issue the underwriters 200,000 ordinary shares (or up to 230,000 if the over-allotment option is exercised in full).

Critical Accounting Estimates

The company has not identified any critical accounting estimates. Management does not believe that any recently issued, but not yet effective, accounting standards would have a material effect on the company’s financial statements if currently adopted.