Overview

Ares Acquisition Corporation II (the “Company”) is a blank check company formed in March 2021 for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. The Company completed its initial public offering (IPO) on April 25, 2023, raising $500 million by selling 50 million units at $10 per unit.

Financial Performance

• For the three months ended September 30, 2024, the Company had net income of $6,964,802, consisting of $7,407,809 in investment income from the trust account, offset by $443,007 in general and administrative costs.
• For the nine months ended September 30, 2024, the Company had net income of $19,943,559, consisting of $21,215,500 in investment income from the trust account, offset by $1,271,941 in general and administrative costs.
• For the three months ended September 30, 2023, the Company had net income of $6,400,142, consisting of $6,784,071 in investment income from the trust account, offset by $383,929 in general and administrative costs.
• For the nine months ended September 30, 2023, the Company had net income of $9,965,778, consisting of $10,657,294 in investment income from the trust account, offset by $691,516 in general and administrative costs.

Liquidity and Capital Resources

• As of September 30, 2024, the Company had $1,189,876 in its operating bank account and working capital of $863,999.
• The Company’s liquidity needs have been satisfied through a contribution from the Sponsor, a loan from the Sponsor, and the proceeds from the private placement not held in the trust account.
• The Company may receive financing from the Sponsor or its affiliates in the form of Working Capital Loans to finance transaction costs in connection with a business combination.
• The Company’s management has determined that the mandatory liquidation of the trust account, should a business combination not occur, raises substantial doubt about the Company’s ability to continue as a going concern.

Strengths and Weaknesses

Strengths:

• The Company has a significant amount of capital raised from its IPO and private placement, providing ample resources to pursue a business combination.
• The Company has the backing and expertise of its Sponsor, Ares Management, which could help identify and execute a successful business combination.

Weaknesses:

• The Company has not yet identified a target business for a combination, and there is no guarantee it will be able to complete a transaction within the required timeframe.
• The Company’s status as a blank check company means it has no operating history or revenue, which could make it challenging to attract a suitable target.
• The mandatory liquidation of the trust account if a business combination is not completed within the required timeframe creates substantial doubt about the Company’s ability to continue as a going concern.

Outlook

The Company’s ability to complete a successful business combination within the required timeframe is critical to its future outlook. If the Company is unable to identify and execute a transaction, it will be required to liquidate the trust account and return funds to shareholders. The Company’s management is actively pursuing potential targets and exploring financing options to increase the likelihood of completing a business combination. However, the Company faces significant challenges and uncertainties, and there is no guarantee it will be able to achieve its goals.