Defiance KSM Israel 120 ETF

What they do

Israel Acquisitions Corp is a Cayman Islands exempted company formed in August 2021 to effect a merger or similar business combination with one or more businesses. It has no operating revenues and focuses on high-growth technology companies domiciled in Israel or with a significant Israeli connection. The company has entered into a Business Combination Agreement with Gadfin Ltd., an Israeli developer of hydrogen-powered drones for cargo delivery.

Revenue drivers

• Business combination — The company has no revenues; its only potential value is from consummating an initial business combination, currently with Gadfin Ltd.
• Trust account funds — Holds funds in a trust account that may be used to finance the business combination; after a recent redemption, approximately 6,056,239 public shares remain.
• Extension payments — Can extend the termination date up to January 18, 2027 by depositing $5,000 or $0.05 per public share into the trust account, providing time to close a deal.

Recent performance

The company reported no revenues for the year ended December 31, 2025, with a net loss of $510,230 and negative operating cash flow of $258,324. As of March 31, 2026, total assets were $6.4 million, total liabilities $8.3 million, and cash and equivalents were $32,586. The company's securities were delisted from Nasdaq in January 2026 and now trade on the Pink Current tier of OTC Markets. Management has expressed substantial doubt about the company's ability to continue as a going concern.

Strategy

The company's stated strategy is to identify and merge with a high-growth Israeli technology company, leveraging what it describes as Israel's strong tech ecosystem. It has signed a Business Combination Agreement with Gadfin Ltd., a hydrogen-powered drone company. The company extended its termination date to allow more time to complete the transaction. Management intends to use existing trust funds and possibly additional financing to close the deal.

Risks

• Going concern risk — Management has determined there is substantial doubt about the company's ability to continue as a going concern.
• Delisting risk — The company's securities were delisted from Nasdaq in January 2026 and now trade on OTC Markets, which may reduce liquidity and market value.
• Business combination risk — The company may not be able to consummate its proposed business combination with Gadfin, and shareholders may redeem their shares, reducing funds available.
• Geopolitical risk — Ongoing multi-front conflict in Israel may materially affect potential acquisition targets and the company's search for a business combination.

Outlook

Management is focused on completing the business combination with Gadfin by the extended deadline of January 18, 2027, using monthly extensions funded by small trust deposits. The company expects to continue incurring expenses related to the transaction and may need to raise additional capital. If the combination fails, the company may have to liquidate.