Quarterly report pursuant to sections 13 or 15(d)

Investments Held in Trust

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Investments Held in Trust
6 Months Ended
Jun. 30, 2012
Investments Held In Trust [Abstract]  
Investments Held In Trust [Text Block]

Note 5 — Investments Held in Trust

 

Substantially all of the net proceeds from the Offering are intended to be generally applied toward the Business Combination. Management agreed to place the net proceeds from the Offering into the Trust Account until the earlier of (i) the completion of a Business Combination and (ii) liquidation of the Company. The placing of funds in the Trust Account may not protect those funds from third party claims against the Company. Although the Company will seek to have all vendors, prospective target businesses or other entities it engages execute agreements with the Company waiving any right in or to any monies held in the Trust Account, there is no guarantee that they will execute such agreements.

 

A total of $50,250,000, which includes $47,275,000 of the net proceeds from the Public Offering and $2,975,000 from the private placement, was placed in the Trust Account.

 

As of June 30, 2012, investment securities in the Company’s Trust Account consist of $50,263,824 in U.S. government treasury bills (the “T-Bills”) with a maturity of August 30, 2012 and $2 of cash. As of December 31, 2011, investment securities in the Company’s Trust Account consist of $50,255,577 in U.S. government treasury bills (the “T-Bills”) with a maturity of March 1, 2012 and $2,280 of cash. The carrying amount, excluding accrued interest income, gross unrealized holding losses and fair value of held-to-maturity securities at June 30, 2012, and the carrying amount, excluding accrued interest income, gross unrealized holding gains and fair value of held-to-maturity securities at December 31, 2011 are as follows:

 

June 30, 2012 Amortized
Cost
Gross
Unrecognized
Gains
Gross
Unrecognized
Losses
Fair Value
Cash $ 2 $ $ $ 2
Held-to-Maturity:
United States Treasury Securities 50,263,822 843 50,262,979
Total Investments Held in Trust $ 50,263,824 $ $ 843 $ 50,262,981

December 31, 2011 Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value
Cash $ 2,280 $ $ $ 2,280
Held-to-Maturity:
United States Treasury Securities 50,253,297 195 50,253,492
Total Investments Held in Trust $ 50,255,577 $ 195 $ $ 50,255,772

 

The Company has earned $12,362 in interest income since the closing of the Offering, all of which is reinvested, along with the proceeds, in three-month T-Bills with a maturity date of August 30, 2012.