American Drive Acquisition

Pre-deal SPAC capital allocation is structurally constrained: trust funds are locked until a business combination or liquidation, and expenses are funded by outside cash and potential sponsor loans.

Founder shares (5.75 million) acquired for $25,000 and deferred underwriting fees create incentives to complete a deal even if target quality is mediocre, and public plus private warrants add dilution at $11.50 strike. These are standard but unfavorable structures for long-term compounding.