Key Highlights

  • Shares were up 101.37% to USD 10.27 in pre-market trading on November 3, 2026.
  • A press release dated November 3, 2026 announced the mutual termination of the Merger agreement with HZJL Cayman Limited.
  • The termination took effect October 30, 2026, and neither party owes a termination fee.
  • The merger agreement being terminated was originally dated January 27, 2025.
  • The company said it will keep pursuing an initial Business combination with another suitable target.

What moved the shares in pre-market trading (up USD 5.17, 101.37%)

Rising Dragon Acquisition (NASDAQ:RDAC) was up 101.37% to USD 10.27 in pre-market trading on November 3, 2026, measured against the Monday November 2, 2026 close. The implied prior close is about USD 5.10 (calculated).

The move follows a company press release dated November 3, 2026. The company said its board and the board of HZJL Cayman Limited had approved a mutual termination of the Agreement and Plan of Merger dated January 27, 2025.

The termination in detail

According to the release, the termination agreement is dated October 30, 2026. Neither side must pay a termination fee, and the parties mutually released each other from claims tied to the merger agreement, subject to certain exceptions.

The release did not give a reason for the termination and did not describe the trust account or a new deadline. It said the company will pursue a business combination within the time period permitted by its amended and restated memorandum and articles of association, and that a Form 8-K with further details would be filed.

The company did not say why the shares more than doubled on news that a deal fell through.

Business background and recent filings

Rising Dragon Acquisition is a Cayman Islands blank check company based in Taiyuan, China. It listed units, shares and rights on Nasdaq under a prospectus dated October 10, 2024, and a company release at the time described a USD 57.5 million initial public offering.

Earlier filings showed the company issuing promissory notes of USD 55,637 to extend its merger timeline, and shareholders had approved the proposed merger with HZJL Cayman Limited. The termination now reverses the transaction that those steps were meant to support.

Risks for a blank check company

A special purpose acquisition company has no operating revenue, and its shares usually track the cash held in trust and the odds of completing a deal. Fresh extensions, Shareholder redemptions, a Liquidation if no deal is completed and thin trading can all change the picture quickly. A move of this size on a small share base can also reverse sharply.

The announcement did not disclose how much cash remains in trust.

What to watch next

The Form 8-K the company promised should clarify the reasons for the termination and any rights tied to the trust account. Watch for a new target announcement, a shareholder meeting notice, any Nasdaq correspondence about the time limit for a deal, and whether pre-market strength holds once regular trading opens on November 3, 2026.