Item 8.01. Other Events.
As previously disclosed on
a Current Report on Form 8-K dated February 18, 2022, on February 17, 2022, A SPAC I Acquisition Corp. (the “Company”)
consummated the IPO of 6,000,000 units (the “Units”). Each Unit consists of one Class A ordinary share (the “Ordinary
Share”), three-fourths (3/4) of one redeemable warrant (the “Warrant”), and one right (the “Right”) to receive
one-tenth of one Ordinary Share upon the consummation of an initial business combination. The Units were sold at an offering price of
$10.00 per Unit, generating gross proceeds of $60,000,000.
As previously disclosed on
a Current Report on Form 8-K dated February 14, 2022, on February 17, 2022, simultaneously with the closing of the IPO,
the Company consummated the private placement (“Private Placement”) with A SPAC (Holdings) Acquisition Corp., the Company’s
sponsor, of 2,875,000 warrants (the “Private Warrants”) at a price of $1.00 per Private Warrant, generating total proceeds
of $2,875,000. The Private Warrants are identical to the public warrants sold in the IPO, as set forth in the Underwriting Agreement,
except as described in the Warrant Agreement.
As of February 17, 2022,
a total of $60,600,000 ($10.10 per Unit) of the net proceeds from the IPO and the Private Placement were deposited in a trust account
established for the benefit of the Company’s public shareholders (the “Trust Account”). An audited balance sheet as
of February 17, 2022 reflecting receipt of the proceeds upon consummation of the IPO and the sale of the Private Placement Warrants
was issued by the Company and filed as an exhibit to a Current Report on Form 8-K dated February 17, 2022.
Subsequently, on February 25,
2022, the underwriters exercised their over-allotment option in full. The closing of the issuance and sale of the additional Units occurred
(the “Over-Allotment Option Units”) on March 1, 2022. The total aggregate issuance by the Company of 900,000 Over-Allotment
Option Units at a price of $10.00 per unit generated total gross proceeds of $9,000,000. On March 1, 2022, simultaneously with the
sale of the Over-Allotment Option Units, the Company consummated the private sale of an additional 270,000 Private Warrants to the sponsor
generating gross proceeds of $270,000.
On March 1, 2022, an
additional $9,090,000 ($10.10 per Unit) consisting of the net proceeds from the sale of the Over-Allotment Option Units, less the underwriter’s
discount of $0.20 per Over-Allotment Option Unit ($8,820,000), and the gross proceeds from the sale of the additional private warrants
($270,000) was placed in the Trust Account, resulting in a total of $69,690,000 held in the Trust Account.
Change in Accounting Policy for Class Ordinary
Shares Subject to Possible Redemption
The Company accounts for its
Class A ordinary shares subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”)
Topic 480 “Distinguishing Liabilities from Equity.” Common stock subject to mandatory redemption (if any) is classified as
a liability instrument and is measured at fair value. Conditionally redeemable common stock (including common stock that features redemption
rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within
the Company’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’
equity. The Company’s Class A ordinary shares feature certain redemption rights that are considered to be outside of the Company’s
control and subject to the occurrence of uncertain future events. Accordingly, as of February 17, 2022, shares of common stock subject
to possible redemption are presented at redemption value of $10.10 per share as temporary equity, outside of the shareholders’ equity
section of the Company’s balance sheet. The Company recognizes changes in redemption value immediately as they occur and adjusts
the carrying value of redeemable common stock to equal the redemption value at the end of each reporting period. Increases or decreases
in the carrying amount of shares of redeemable common stock are affected by charges against additional paid in capital or accumulated
deficit if additional paid in capital equals to zero.
On March 29, 2022, the
Company elected to change accounting policy to accretion method in accordance with ASC 480-10-S99-3A and recognizes changes in redemption
value in additional paid-in capital (or accumulated deficit in the absence of additional paid-in capital) over an expected 12-month period
leading up to a Business Combination. Included with this report as Exhibit 99.1 is a pro-forma balance sheet reflecting the change
in accounting policy.