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Legato Merger Corp. III Announces Receipt of Audit Opinion with Going Concern Explanation

1. Legato Merger Corp. III disclosed going concern issues in recent audit. 2. No changes to previous financial statements reported. 3. Focus on mergers in infrastructure and renewables sectors outlined. 4. Management team led by CEO Gregory Monahan includes seasoned professionals. 5. Forward-looking statements warn of potential risks impacting company stability.

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$003/13 05:33 PM EDTLatest Updated
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FAQ

Why Very Bearish?

The going concern warning can significantly undermine investor confidence, leading to price drops. Similar circumstances historically have caused stocks to plummet due to market fears surrounding viability.

How important is it?

The audit's going concern opinion signals substantial risk, greatly affecting price potential. High relevance due to direct implications on LEGT-U's operational future.

Why Short Term?

Immediate market reactions to negative financial disclosures typically cause quick downturns. Investors may react rapidly to audit opinions indicating financial instability.

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LEGTLEGT WS
March 13, 2025 17:30 ET  | Source: Legato Merger Corp III NEW YORK, March 13, 2025 (GLOBE NEWSWIRE) -- Legato Merger Corp. III (NYSE American: LEGT U, LEGT, LEGT WS) (the “Company”) announced that, as previously disclosed in its Annual Report on Form 10-K for the year ended November 30, 2024, which was filed on February 19, 2025 with the Securities and Exchange Commission, the audited financial statements contained an audit opinion from its independent registered public accounting firm that included an explanatory paragraph related to the Company’s ability to continue as a going concern. See further discussion in Note 1 to the Company’s financial statements included in the Company’s Annual Report on Form 10-K. This announcement is made pursuant to NYSE American LLC Company Guide Sections 401(h) and 610(b), which requires public announcement of the receipt of an audit opinion containing a going concern paragraph. This announcement does not represent any change or amendment to the Company’s financial statements or to its Annual Report on Form 10-K for the year ended November 30, 2024. Legato Merger Corp. III is a Cayman Islands exempted company incorporated for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities. The Company’s efforts to identify a prospective target business will not be limited to a particular industry or geographic region although the Company intends to initially focus on target businesses in the infrastructure, engineering and construction, industrial and renewables industries. The Company’s management team is comprised of Gregory Monahan, Chief Executive Officer and Director, Eric S. Rosenfeld, Chief SPAC Officer, Adam Jaffe, Chief Financial Officer, Secretary and Director, Brian Pratt, Director and Non-Executive Chairman of the Board, David D. Sgro, Director and Non-Executive Vice Chairman of the Board, and Adam Semler and John Ing, each a Director of the Company. FORWARD-LOOKING STATEMENTS This press release contains statements that constitute “forward-looking statements.” Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s Annual Report on Form 10-K for the year ended November 30, 2024 filed with the SEC. Copies are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.  Contacts:Gregory MonahanChief Executive OfficerLegato Merger Corp. III(212) 319-7676

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