Overview

Agriculture & Natural Solutions Acquisition Corporation (ANSC) is a blank check company formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. The company was incorporated in the Cayman Islands and its sponsor is Agriculture & Natural Solutions Acquisition Sponsor LLC, an affiliate of Riverstone Investment Group LLC and Impact Ag Partners LLC.

Financial Performance

• For the three months ended June 30, 2024, ANSC reported net income of $2,242,550, which consisted of general and administrative expenses of $2,513,578 offset by $4,756,128 of interest on the Trust Account.
• For the six months ended June 30, 2024, ANSC reported net income of $6,379,230, which consisted of general and administrative expenses of $3,064,836 offset by $9,444,066 of interest on the Trust Account.
• For the three and six months ended June 30, 2023, ANSC had a net loss of $698, which consisted of formation costs.

Liquidity and Capital Resources

• As of June 30, 2024, ANSC had no cash on hand and a working capital deficit of $79,964.
• Cash used in operating activities for the six months ended June 30, 2024 was $422,554, which was made up of net income of $6,379,230, changes in operating assets and liabilities of $2,642,382, offset by $9,444,066 of interest on the Trust Account.
• ANSC may need to obtain additional financing to complete an initial business combination or to redeem a significant number of its public shares upon completion of an initial business combination.
• The company has access to funds from the Sponsor that are sufficient to fund its working capital needs until the earlier of the consummation of the business combination and one year from the date of issuance of the financial statements.

Contractual Obligations

• ANSC has entered into a registration rights agreement that provides certain registration rights to the holders of its Founder Shares, Private Placement Warrants, and Public Warrants.
• The company has an underwriting agreement that requires it to pay an underwriting discount and deferred underwriting commissions upon completion of an initial business combination.
• ANSC has an administrative services agreement to pay an affiliate of its Sponsor $10,000 per month for office space, utilities, and administrative support until the earlier of the consummation of an initial business combination or its liquidation.

Critical Accounting Estimates

• Offering Costs: ANSC has identified the allocation of offering costs between public shares and warrants as a critical accounting estimate due to the significant judgment involved in the valuation of warrant values and the allocation of proceeds.

Outlook

ANSC is a newly formed blank check company that has not yet completed an initial business combination. The company’s ability to generate revenue and achieve profitability will depend on its success in identifying and completing a suitable business combination. While the company has access to sufficient funds to meet its working capital needs in the near-term, it may need to obtain additional financing to complete a business combination or redeem a significant number of public shares. The company’s future performance and outlook will be largely dependent on the success of its acquisition efforts.