Piermont Valley Acquisition Corp Liquidation Value

Piermont Valley Acquisition Corp (CMCAF) is a Cayman Islands blank check SPAC incorporated in 2021 that has never commenced operations. As of December 31, 2025, the entity is in an advanced state of wind-down: no business combination has been consummated, the company was delisted from Nasdaq in April 2024, control transferred to a new sponsor (Valleypark Road, LLC) in July 2025, and the Trust Account was substantially depleted through successive redemption events totaling approximately $242.5 million since IPO. Under the liquidation lens, this entity's recovery posture is straightforwardly negative for common equity holders.

Total assets at December 31, 2025 are $2.49 million, consisting almost entirely of $2.44 million of Trust Account investments (Level 1 US Treasuries or cash equivalents held by Continental) and $53,174 in operating cash. The Trust Account balance is earmarked as temporary equity ($2.44 million) against 204,986 remaining redeemable Class A shares at approximately $11.91 per share redemption value. The filing discloses that these remaining public shares were actually redeemed in August 2025 when the Trust was fully depleted, which creates a significant internal inconsistency: the balance sheet as of December 31, 2025 still carries $2.44 million in trust assets and $2.44 million in temporary equity, yet the narrative states the Trust was already liquidated. This inconsistency is not explained in the XBRL or footnotes and raises a financial reporting reliability concern.

On the liability side, total liabilities are $1.05 million. Current liabilities of $234K include accrued liabilities of $63K and due-to-related-party of $171K (Valleypark advances). The dominant liability is the Public Warrant derivative at $819K fair value (Level 1, 11.5 million warrants outstanding at $0.07125/warrant), up from $585K at September 30, 2025 and $16K at March 31, 2025, a 50x increase over nine months driven entirely by warrant price appreciation with zero connection to business fundamentals. The $8.05 million deferred underwriting fee was waived in connection with the sponsor change transaction. The former sponsor's working capital loan ($1.5M), related party notes, and private placement warrant liabilities were also forgiven/cancelled, recorded as capital contributions that reduced the shareholders' deficit.

Permanent equity is a deficit of $(1.00 million) in accumulated deficit with nominal paid-in capital. Consolidated shareholders' equity (deficit) is $(999K). Working capital deficit is $(180,537) as disclosed in the going concern footnote. The Valleypark promissory note (up to $1M, non-interest bearing, forgiven on wind-up unless cash available outside trust) is not separately tagged in XBRL and its drawn amount is embedded in the $107K financing cash flow. Liquidation recovery to common equity is zero — the trust assets are contractually subordinated to public share redemptions, and the warrant liability at face value ($819K) plus other liabilities ($234K current) against only $53K of unrestricted assets produces a substantial negative recovery for permanent equity holders.