{"url_path":"/sec/crac/10-q/2026/item-1a","section_key":"item-1a","section_title":"Item 1A Risk Factors.","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/2070887/0001213900-26-056978-index.html","accession_number":"0001213900-26-056978","cik":"0002070887","ticker":"CRAC","issuer_name":"Crown Reserve Acquisition Corp. I","edgar_url":"https://www.sec.gov/Archives/edgar/data/2070887/0001213900-26-056978-index.html","primary_entity_key":"0002070887","primary_entity_name":"Crown Reserve Acquisition Corp. I"},"word_count":582,"has_tables":true,"body_markdown":"Item 1A. Risk Factors.\n\n \n\nFactors that could cause our actual results to\ndiffer materially from those in this Quarterly Report include the risk factors described in our Annual Report on Form 10-K for the period\nfrom April 29, 2025 (inception) through December 31, 2025, filed with the SEC. As of the date of this Quarterly Report, except for the\nrisks set forth below related to our entry into the Business Combination Agreement with Carvix, there have been no material changes to\nthe risk factors disclosed in our Annual Report on Form 10-K.\n\n \n\n*We may not be able to complete the Business\nCombination with Carvix, including in the time required by our amended and restated memorandum and articles of association.*\n\n \n\nOn March 30, 2026, we entered into the Business\nCombination Agreement with Merger Sub and Carvix. Consummation of the transactions contemplated by the Business Combination Agreement\nis subject to a number of conditions, including approval by our stockholders, delivery of the Carvix stockholder written consent, the\nSEC declaring effective the related Registration Statement on Form S-4, approval for listing on Nasdaq of the shares of common stock to\nbe issued in the transactions, satisfaction of our net tangible asset condition, and our having at the Closing at least the “Minimum\nCash Amount,” after giving effect to redemptions, payment of transaction expenses and repayment of indebtedness. There can be no\nassurance that all such conditions will be satisfied or waived in a timely manner, or at all. If we are unable to complete the Business\nCombination with Carvix prior to the Outside Date of September 30, 2026 (or such later date as may be mutually agreed by the parties),\nthe Business Combination Agreement may be terminated. If the Business Combination Agreement is terminated and we are unable to identify\nand consummate an alternative initial Business Combination by November 10, 2026 (or February 10, 2027 if the Combination Period is automatically\nextended upon execution of an alternative Business Combination agreement), we will be required to cease operations except for the purpose\nof winding up, redeem all of the public shares, and liquidate.\n\n \n\n*The pendency of the Business Combination\nwith Carvix could adversely affect us.*\n\n \n\nIn connection with the Business Combination Agreement,\nwe are subject to customary covenants regarding the conduct of our business and exclusivity, which limit the scope of activities we may\npursue prior to the Closing. The pendency of the proposed Business Combination could divert management’s attention, result in significant\ntransaction expenses, and limit our ability to consider or pursue alternative business combinations. In addition, public stockholders\nmay exercise their redemption rights in connection with the Business Combination, which could materially reduce the funds available to\nthe combined company at the Closing and may impact our ability to satisfy the Minimum Cash Amount condition.\n\n \n\n*Following the Domestication, we will be\na Delaware corporation, and the rights of our stockholders under Delaware law may differ from those under Cayman Islands law.*\n\n \n\nIn connection with the Business Combination Agreement,\nwe have agreed to effect a Domestication from a Cayman Islands exempted company to a Delaware corporation prior to the Effective Time.\nThe rights of stockholders under Delaware law differ in certain respects from the rights of shareholders under Cayman Islands law, including\nwith respect to the availability of statutory dissenters’ or appraisal rights, fiduciary duties of directors, indemnification of\nofficers and directors, and the procedures for stockholder votes and consents. Holders of our securities should consider these differences\ncarefully when evaluating the Business Combination.\n\n \n\n23"}