Item 2. Unregistered Sales of Equity Securities
Item 2. Unregistered Sales of Equity Securities
and Use of Proceeds.
Use of Proceeds
In February 2021, our
Sponsor paid $25,000, or approximately $0.003 per share, to cover certain of our offering costs in exchange for 7,187,500 Founder Shares.
Subsequently on March 5, 2021, we effected a 1.2 to 1 share recapitalization with respect to our Class B ordinary shares, as a result
of which our Sponsor held 8,625,000 Founder Shares. The number of Founder Shares outstanding was determined based on the expectation that
the total size of our Public Offering would be a maximum of 34,500,000 Units if the underwriters’ over-allotment option is exercised
in full and therefore that such Founder Shares would represent 20% of the outstanding shares after the Public Offering. Up to 1,125,000
of these shares were subject to surrender for no consideration depending on the extent to which the underwriter’s over-allotment
was exercised. On October 29, 2021, as a result of the partial exercise of the over-allotment option, our Sponsor forfeited 381,250 Founder
Shares and the remaining Founder Shares are no longer subject to forfeiture. Such securities were issued in connection with our organization
pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act. No underwriting discounts or commissions
were paid with respect to such sales.
On September 24, 2021,
we consummated the IPO of 30,000,000 Units at $10.00 per Unit. Each Unit consists of one Class A ordinary share, and one-half of one Public
Warrant, with each whole warrant entitling the holder to purchase one Class A ordinary share for $11.50 per share, subject to adjustment.
The underwriters had a 45-day option to purchase up to an additional 4,500,000 Units to cover over-allotments, if any. On October 29,
2021, the underwriters partially exercised the over-allotment option and purchased 2,975,000 Over-Allotment Units, generating additional
gross proceeds of $29,750,000, and forfeited their option to purchase the remaining 1,535,000 Units. The securities in the Public Offering
were registered under the Securities Act on a registration statement on Form S-1 (No. 333-253963). The SEC declared the registration statement
effective on September 21, 2021.
Simultaneously with the
closing of the IPO, we consummated the sale of 6,250,000 Private Placement Warrants to our Sponsor at a price of $1.00 per Private Placement
Warrant, generating total gross proceeds of $6,250,000. On October 29, 2021, simultaneously with the closing of the Over-Allotment, our
Sponsor purchased an additional 595,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant, generating aggregate
gross proceeds of $595,000. Such securities were issued pursuant to the exemption from registration contained in Section 4(a)(2) of the
Securities Act. No underwriting discounts or commissions were paid with respect to such sales.
We paid a total of $16,908,188
in underwriting discounts and commissions and offering costs, consisting of $4,595,000 of underwriting commissions, $11,541,250 of deferred
underwriting commissions, and $771,938 of other offering costs related to the IPO.
There has been no material
change in the planned use of the proceeds from the Public Offering and the sale of the Private Placement Warrants as is described in the
IPO Prospectus.
26
In connection with the
consummation of the IPO, we entered into a forward purchase agreement with Kingstown 1740 Fund, LP and Kingfishers L.P., affiliates of
Kingstown Capital Partners, LLC, collectively “Kingstown” and our Sponsor, pursuant to which Kingstown agreed that it will
purchase from us up to 5,000,000 Forward Purchase Shares, for $10.00 per share, or an aggregate amount of up to $50,000,000, in a private
placement that will close concurrently with the closing of our initial Business Combination. The proceeds from the sale of these Forward
Purchase Shares, together with the amounts available to us from the Trust Account (after giving effect to any redemptions of Public Shares)
and any other equity or debt financing obtained by us in connection with the Business Combination, will be used to satisfy the cash requirements
of the Business Combination, including funding the purchase price and paying expenses and retaining specified amounts to be used by the
post-Business Combination company for working capital or other purposes. To the extent that the amounts available from the Trust
Account and other financing are sufficient for such cash requirements, Kingstown may purchase less than 5,000,000 Forward Purchase Shares.
In addition, Kingstown’s commitment under the forward purchase agreement will be subject to approval of its investment committee
prior to the closing of our initial Business Combination. Accordingly, if Kingstown’s investment committee does not give its approval,
Kingstown will not be obligated to purchase the Forward Purchase Shares. Further, we have the right, in our sole discretion, to reduce
the amount of Forward Purchase Shares that Kingstown may purchase pursuant to the forward purchase agreement. Pursuant to the terms of
the forward purchase agreement, Kingstown will have the option to assign its commitment to one of its affiliates and up to $5,000,000
to members of our management team or board of directors. The Forward Purchase Shares will be identical to the Class A ordinary shares
included in the Units sold in the Public Offering, except that they will be subject to transfer restrictions and registration rights.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
Not Applicable.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.