BKHAR

Black Hawk Acquisition Corp. Rights give holders the contractual right to receive a certain number of shares or purchase shares at a favorable price upon completion of a business combination or other specified triggering events. Rights were issued as part of Black Hawk Acquisition's initial offering structure and represent a distinct security type from common stock and warrants. Each right typically entitles the holder to receive fractional shares or purchase shares at predetermined prices when the SPAC consummates its merger with a target company, providing additional equity upside. Rights serve as sweeteners for early SPAC investors, providing incremental equity participation upon successful business combination completion. The specific terms governing the rights, including conversion ratios, exercise mechanisms, and triggering events, are detailed in the SPAC's prospectus and offering documents. Rights typically have no value if the SPAC fails to complete a business combination within its specified time frame and returns capital to shareholders. However, if a successful merger occurs, rights convert into common shares or become exercisable, providing additional equity exposure in the combined company. These securities trade separately from common stock and other SPAC components after initial separation, allowing investors to buy or sell rights independently based on their assessment of the likelihood and attractiveness of a potential business combination. Rights appeal to investors who believe Black Hawk Acquisition will identify and complete an attractive merger transaction, as the rights provide additional equity upside without requiring additional capital outlay beyond the initial investment. The value of rights reflects market expectations about the probability of a successful business combination, the anticipated timeline, and the expected value creation potential of the combined entity. Rights typically trade at modest prices reflecting their contingent nature but can appreciate significantly if an attractive business combination is announced and completed.