Recent news highlights the company’s progress toward its Business Combination with Algoma Steel, including stockholder approval and signing of a definitive merger agreement. Other news items are unrelated to the company’s core business.

• Legato Merger Corp. IV received stockholder approval for its Business Combination with Algoma Steel as of October 14, 2021 [N5].
• The company signed a definitive merger agreement with Algoma Steel on May 24, 2021, advancing its Business Combination plans [N6].

The company has successfully completed its IPO and raised substantial capital held in a Trust Account, providing financial resources to pursue a Business Combination. It has secured stockholder approval and signed a definitive merger agreement with Algoma Steel, indicating progress toward completing its acquisition objective. The company maintains strong liquidity and low liabilities, with management actively overseeing financial and operational readiness for the Business Combination.

The company has not generated operating revenues and relies solely on investment income and capital raised through its IPO and private placements. The success of the company depends on completing a Business Combination, which carries execution risk and uncertainty. Failure to complete a Business Combination within the prescribed timeframe could result in liquidation of funds held in the Trust Account and potential loss of shareholder value. The company also incurs ongoing administrative and general expenses without operating income.

As a SPAC, Legato Merger Corp. IV's moat is primarily its capital pool and ability to identify and complete a Business Combination with a target company. Its moat depends on management's expertise in sourcing and executing acquisitions and the financial resources secured through its IPO and private placements. The company’s structure as a SPAC provides a defined timeframe and capital commitment to pursue acquisition opportunities, but it currently lacks operating history or proprietary products or services.

• Business Combination Execution Risk: The company’s ability to complete a Business Combination is uncertain and depends on identifying suitable target(s), negotiating terms, and obtaining necessary approvals.
• Liquidity and Capital Risk: While the company holds substantial funds in a Trust Account, it incurs ongoing expenses and may require additional financing to complete a Business Combination or cover transaction costs.
• Regulatory and Compliance Risk: As a public company, the company must comply with SEC reporting requirements and other regulations, which may impose costs and operational constraints.
• Market and Economic Risk: Market conditions and economic factors may impact the company’s ability to complete a Business Combination or affect the valuation and performance of the target business.

• Legato Merger Corp. IV is a Cayman Islands exempted company incorporated on September 1, 2025, formed as a Special Purpose Acquisition Company (SPAC) to acquire one or more businesses through a Business Combination.
• The company completed its Initial Public Offering (IPO) and has raised funds held in a Trust Account invested primarily in U.S. government securities and money market funds.
• As of May 31, 2026, the company held $232.3 million in investments in the Trust Account and $2.4 million in cash outside the Trust Account.
• The company had total assets of approximately $234.9 million and total liabilities of $8.05 million as of May 31, 2026.
• Ordinary shares subject to possible redemption totaled 23 million shares valued at $10.10 per share as of May 31, 2026.
• The company has issued 8.27 million ordinary shares outstanding excluding shares subject to redemption.
• The company has not engaged in any operations or generated revenues to date; its income is derived from interest income on investments held in the Trust Account and cash accounts.
• For the nine months ended May 31, 2026, the company reported net income of $2.44 million, primarily from investment income, with general and administrative expenses of $381,575.
• The company incurred net income despite operating losses, due to income from investments held in the Trust Account.
• The company’s liquidity as of May 31, 2026, shows a current ratio of 81.53, reflecting high current assets relative to current liabilities of $32,059.
• The company’s management and Chief Financial Officer act as the Chief Operating Decision Maker (CODM) and review the company as a single operating segment.
• The company occupies office space and receives administrative services from a related party, Crescendo Advisors II, LLC, paying $25,000 per month for these services.
• The company pays its CEO and CFO $5,000 per month each for their services.
• The company has no long-term debt or off-balance sheet arrangements as of the latest reporting period.
• The company’s warrants are exercisable at $11.50 per share with a term of 6.5 years and are valued using a Monte Carlo simulation model.
• The company’s financial statements comply with U.S. GAAP and SEC reporting requirements, with no unrecognized tax benefits or significant tax liabilities.
• The company’s shares include Founder Shares and Public Shares, with Founder Shares subject to transfer restrictions until certain conditions are met.
• The company’s financial disclosures and filings are publicly available on the SEC EDGAR system.
• Recent news items related to the company include its stockholder approval for a business combination with Algoma Steel and the signing of a definitive merger agreement with Algoma Steel in 2021, indicating progress toward its business combination objective.