Item 1. Business
Overview
We are a blank check company
incorporated as a Cayman Islands exempted company for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock
purchase, reorganization or similar business combination with one or more businesses, which we refer to throughout this Report as our
initial business combination.
While we may pursue an initial
business combination in any industry, sector or geographic region, we intend to focus our search initially on North American businesses
in the consumer sector, which complements the expertise of our Management Team. We will seek strong fundamental businesses in a broad
range of consumer products and services sectors, with emphasis on one or more of the following attributes:
| ● | Market leadership or a path to market leadership in the short to medium-term; |
| ● | Established, authentic and profitable brands; |
| ● | History of organic growth and attractive margins with opportunities to further enhance revenue growth
and profitability through innovation, marketing investments (including digital) and productivity improvements; |
| ● | Recession resistant, everyday use products offering a compelling price/value proposition; |
| ● | Beneficiary of increased outsourcing of critical, value-added services within the consumer sector; |
| ● | Extendable platforms via adjacent category launches and M&A; |
| ● | Omnichannel presence and/or opportunities; |
| ● | Strong, visionary management teams; and |
| ● | Orphan segments or brands deemed non-core or off-strategy by their corporate owners that could benefit
greatly from increased focus and investment. |
The U.S. consumer goods and
services sector is a large addressable market, which at $14.5 trillion in 2019 represented approximately 68% of U.S. GDP and grew at a
4.4% CAGR over the 2016-2019 period. Within this substantial market, we will focus our efforts on subcategories where we can enhance value
by leveraging our experience and relationships across the value chain including, but not limited to, packaged and frozen foods, beverages,
beer, wine and spirits, snacks, household products, pet products, consumer and marketing services and personal care products, including
health and beauty and over-the-counter products.
Our Management Team has the
necessary corporate, financial and investment experience to successfully pursue acquisitions with a myriad of transaction structures.
We envision a transaction may be derived from many different business inflection points, which include, but are not limited to: (i) corporate
carve outs; (ii) privately owned, on-trend, fast-growing businesses and brands seeking an efficient path to becoming public; (iii) private
equity owned businesses whose growth can be further accelerated; and (iv) businesses that would similarly benefit from a partnership with
our Management Team. Whether a carve-out or whole company acquisition, we are proficient in identifying attractive opportunities and continuously
adding value post deal execution.
Our Sponsor is an affiliate
of Authentic Equity, LLC (“Authentic Equity”) a premier New York based consumer focused private equity investment firm led
by David Hooper, our Chairman and CEO, Thomas Flocco, our President,COO and Director, and Todd Khoury, our CFO and Director. Authentic
Equity is focused on investing in high-quality North American middle market consumer companies with quality management teams and attractive
strategic, operational and financial growth opportunities that can benefit from access to Authentic Equity’s network of operating
talent. During their collective careers, our management team and board have made private equity investments in, or served in senior executive
operating roles at, more than 20 consumer companies, including in such companies as Advantage Solutions, A&W Brands Inc., Big Heart
Pet Brands, Birds Eye Foods, Del Monte Foods, Fortune Brands (Beam, Inc.), Gillette, LoJack Corporation, Ole Smoky Distillery, Richelieu
Foods, The Nielsen Company, Triarc Beverage Group and Utz Quality Foods. In aggregate, our Management and board have participated in transactions
totaling in excess of $20 billion of initial enterprise value.
One of Authentic Equity’s
Co-Founders, David Hooper, has over twenty-five years of consumer private equity experience, including highly successful tenures at Centerview
Capital and Vestar Capital Partners. At both Centerview Capital and Vestar Capital Partners, Mr. Hooper played a leading role in sourcing,
acquiring, building and exiting high quality, on-trend portfolios of consumer and consumer services companies, such as: (i) Birds Eye
Foods, which was sold to Pinnacle Foods/Conagra Brands (NYSE: CAG); (ii) The Nielsen Company, which completed an initial public offering
(NYSE: NLSN); (iii) Richelieu Foods, which was sold to Freiberger/Sudzucker (ETR: SZU); (iv) Del Monte Foods, which was sold to Del Monte
Pacific Limited; (v) Big Heart Pet Brands, which was sold to J.M. Smucker (NYSE: SJM); (vi) Ole Smoky Distillery; and (vii) Advantage
Solutions (Nasdaq CM: ADV), which merged with Conyers Park II Acquisition Corp.
Business Strategy
Leveraging the over 60 years
collective expertise of Mr. Hooper, Mr. Flocco and Mr. Khoury in the consumer products and consumer products services industries, we intend
to target acquisitions in these sectors where we see a clear path to value creation by transforming businesses to improve top-line growth,
drive productivity and enhance scale. Our Management Team has extensive relationships throughout the consumer products value chain and
proven expertise in sourcing, structuring and completing transactions across multiple consumer categories. Moreover, we believe ongoing
M&A could be a critical component of our stakeholder value creation framework following consummation of our initial business combination.
We intend to invest behind
key themes and trends that we believe will continue to affect the rapidly evolving consumer industry, and to identify opportunities that
are capitalizing on the following dynamics or have the potential to do so:
| ● | Increased importance of authentic, mission driven brands that stand for something; |
| ● | Growing demand for multicultural/ethnic offerings; |
| ● | Ongoing channel shift from store-based retail to Amazon, retailer.com and direct to consumer, highlighting
the importance of true omnichannel exposure; |
| ● | Rapidly shifting demographics with different needs and aggregate spending power; |
| ● | Rising consumer brand engagement driving growth in clean label, natural and organic and sustainably sourced
and packaged products; |
| ● | Growing adoption rates and humanization of companion pets and resulting premiumization across the pet
food and pet products categories; |
| ● | Acceleration of barbell consumption as premium and value priced offerings grow at the expense of mid-priced
products and services; |
| ● | Ongoing importance of the right consumer value equation, relationship of price to perceived value; |
| ● | Ongoing outsourcing of critical consumer packaged goods (“CPG”) operations and functions; |
| ● | Productivity as a growth enabler — reducing indirect costs to reinvest in innovation and marketing
to accelerate growth; |
| ● | Consumer desire to customize and communicate through their brand choices, driving rapidly growing niche
pockets within large categories; and |
| ● | Increased importance of clean environments, inside and outside the home. |
In addition to leveraging
our Management Team’s strong, existing consumer industry relationships, we intend to communicate broadly our desire to seek a transaction
to private equity and venture capital investors, consumer company founders, investment banks, accounting firms, industry associations
and consulting firms serving the CPG industry.
Acquisition Strategy
Our business combination targeting
will focus on opportunities where we believe our expertise will enable us to accelerate growth by expanding distribution and improving
velocity, improving margins by driving productivity and shifting business mix and increasing cash flow generation by improving working
capital and making disciplined capital investments. With our business strategy as our guiding principles, we have identified certain criteria
and guidelines that we believe to be important in evaluating acquisitions. While we will apply these criteria in evaluating the merits
of potential combinations, we may complete our initial combination with a business that does not meet these criteria and guidelines.
We are targeting candidates
with $500 million to in excess of $1 billion of enterprise value with the majority of their business in North America, which we believe
best utilizes our expertise. Many of the acquisition candidates will possess one or more of the following characteristics:
| ● | Market leaders with a strong competitive moat: Companies with a #1 or #2 market share in their
respective categories, or a path to market share leadership, and a clear, defensible and difficult to replicate strategic position; |
| ● | Strong platform for growth: Companies that possess strong growth potential through compelling category
exposure, greater innovation, improved marketing, brand extendibility and inorganic growth opportunities through M&A; |
| ● | Margin improvement opportunities: Using competitive benchmarking and bottoms-up cost analysis,
we will seek targets where our expertise and that of our board of directors and advisors can be applied to drive sustainable gross and
operating margin improvements; |
| ● | Strategic and proven management team: Companies with strong management teams that have proven industry
experience and a track record of delivering strong top-line growth and margin improvements with agility to adapt to changing business
conditions, both structural and cyclical; |
| ● | Compelling public company attributes: Companies that will resonate with public market investors
including category and brand tailwinds, latent growth opportunities and predictable earnings trajectories; and |
| ● | Compelling valuation: Companies valued at appropriate valuation multiples relative to public peers
with opportunities to expand valuation with performance above expectations. |
These criteria are not intended
to be exhaustive. Any evaluation relating to the merits of a particular initial business combination may be based, to the extent relevant,
on these general guidelines as well as other considerations, factors and criteria that our Sponsor and management team may deem relevant.
In the event that we decide to enter into a business combination with a target business that does not meet the above criteria and guidelines,
we will disclose that the target business does not meet the above criteria in our shareholder communications related to our initial business
combination, which would be in the form of proxy solicitation or tender offer materials, as applicable, that we would file with the SEC.
Although we intend to focus on identifying business combination candidates in the consumer products, services, retail and related industries,
we will consider a business combination candidate outside of these industries if we determine that such candidate offers an attractive
opportunity for our company.
Our Management Team
Our leadership team, including
our board members, consists of seasoned investors and operators with deep experience driving growth by improving brand equity and resonance,
optimizing operations and implementing digital and technology solutions to accelerate growth and improve productivity. Our team has a
long history of enhancing value by aligning with management partners and other stakeholders. Collectively, they possess a wide-ranging
set of complementary competencies across the consumer products value chain with extensive public market experience and financial acumen.
We believe that our Management
Team is well positioned to identify attractive opportunities while mitigating risk through a methodical acquisition identification and
diligence process, leveraging their extensive network of relationships across the industry and years of consumer private equity experience.
Our founders’ objectives
are to generate attractive returns by enhancing value through revenue growth acceleration and improved operational performance of the
acquired company. Further, we believe our Management Team will make us an attractive partner to potential target businesses, increasing
our probability of completing a successful business combination and enhancing value for all stakeholders.
David Hooper, Chairman and Chief Executive
Officer
Mr. Hooper serves as our Chief
Executive Officer and also chairs our board of directors. Mr. Hooper co-founded Authentic Equity in 2018. Prior to Authentic Equity, in
2006, he co-founded Centerview Capital. At Centerview Capital, Mr. Hooper was a Partner, managed the firm’s consumer fund and co-chaired
its investment committee. He played a leading role in each of Centerview Capital’s consumer investments since inception, including
The Nielsen Company, Richelieu Foods, Big Heart Pet Brands/Del Monte Foods, Ole Smoky Distillery and Advantage Solutions.
Prior to Centerview Capital,
Mr. Hooper was a Managing Director, Head of the Consumer Group and Chairman of the U.S. Investment Committee at Vestar Capital Partners.
Prior to joining Vestar in 1994, Mr. Hooper served as a financial consultant to GPA Group plc and was a member of The Blackstone Group’s
Principal Investment Group and Drexel Burnham Lambert’s M&A department.
Over his career, Mr. Hooper
has served as a board member or board observer of numerous consumer-oriented companies, including Nielsen, J.M. Smucker, Big Heart Pet
Brands, Advantage Solutions, Birds Eye Foods, Richelieu Foods, Del Monte Foods, Ole Smoky Distillery and Anvil Knitwear.
Mr. Hooper holds a BSBA from
Georgetown University and an MBA from the Stanford Graduate School of Business. Mr. Hooper serves on the Board of Advisors for Georgetown
University’s McDonough School of Business.
Thomas Flocco, President, Chief Operating
Officer and Director
Mr. Flocco is an established
consumer products operating executive with a more than 30-year track record of experience in building and managing businesses and brands,
driving operational improvements and providing strategic leadership.
Mr. Flocco joined
Authentic Equity in 2020 as an Operating Partner. Prior to Authentic Equity, he served as President and Chief Operating Officer of
Utz Quality Foods (NYSE: UTZ), a snack foods company with approximately $900 million of revenue, from 2017 to 2019, where he was
responsible for day-to-day commercial, financial and operational activity. He previously served as President and Chief Executive
Officer of Beam Inc. (now Beam Suntory) (“Beam”), a global distilled spirits business with over $2.5 billion of revenue
and 4,000 employees, from 2003 to 2008. At Beam, he held full general management responsibility for a global spirits business that
includes brands such as Jim Beam, Knob Creek, Maker’s Mark, Courvoisier, Sauza, Canadian Club, Laphroaig and others. He has
also served as Chairman and CEO of Everglades Boats, where he currently holds the title of Chairman.
Earlier in his career, Mr.
Flocco was a Senior Vice President - Strategy and M&A for Fortune Brands, Inc. and a Partner at McKinsey & Company, where
he co-led the Consumer and Supply Chain practices in North America. He began his career in Sales and then in Brand Management for Procter
& Gamble.
Over his career, Mr. Flocco
has served on multiple boards of directors of consumer companies, including BevMo!, and currently sits on the board of directors of Everglades
Boats.
Mr. Flocco holds a BA in Chemistry
from Boston University and an MBA from Harvard Business School.
Todd Khoury, Chief Financial Officer
and Director
Mr. Khoury co-founded Authentic
Equity in 2018. During his career, Mr. Khoury was a Managing Director, Head of the Media and Communications Group and a member of the
U.S. Investment Committee at Vestar Capital Partners from 1993 to 2005. He was also a Managing Director at BlackRock, Inc. from 2005 to
2007, where he co-led the firm’s initial effort in private equity. He has also worked closely with a number of small businesses
on strategic and operational initiatives and started his career at Salomon Brothers Inc.
Mr. Khoury holds a BA in History
from Yale University and an MBA from Harvard Business School.
Robert Ernst, Independent Director
Mr. Ernst is an experienced
deal advisory professional with over 30 years of public accounting experience. He has focused in the area of mergers and acquisitions,
including business and financial due diligence, synergy analysis, integration planning, market assessment and transaction structuring.
He has advised on buy-side and sell-side due diligence transactions for numerous financial and strategic buyers in domestic and international
transactions, ranging in enterprise value from $5 million to in excess of $25 billion.
Mr. Ernst was the Transaction
Services Service Line leader for KPMG’s U.S. Deal Advisory practice for approximately eleven years before his retirement in September
2020. Prior to joining KPMG, Mr. Ernst was a Transaction Services Partner focusing on private equity and consumer markets transactions
at Andersen and, prior to that, at PricewaterhouseCoopers. His industry experience includes consumer products, manufacturing, retail and
distribution, restaurant and technology.
Mr. Ernst holds a BS in Accounting
and Finance from Boston College and an MBA from Columbia University School of Business.
Tim O’Connor, Independent Director
Mr. O’Connor is a highly
experienced consumer products executive with over 30 years of leadership of food and consumer products companies, including as Chief Executive
Officer and Chief Financial Officer.
Mr. O’Connor is currently
the CEO of Teasdale Foods, Inc., a producer of branded and private label Latino and Hispanic foods. Prior to Teasdale, Mr. O’Connor served
as the CEO of Richelieu Foods, Inc. (“Richelieu”), the leading manufacturer of retail private label frozen and deli pizza
in the U.S. and a leading provider of retail salad dressings and premium sauces, until the company’s sale to Freiberger/Sudzucker
(ETR: SZU) in 2017. As CEO of Richelieu, Mr. O’Connor delivered highly relevant product innovation, operational improvements and
strategic development that led to significant growth in market share, revenue, profits and cash flow. Prior to becoming CEO of Richelieu
in 2013, Mr. O’Connor served as Richelieu’s CFO from 2011 to 2013.
Earlier in his career, Mr.
O’Connor served as Executive Vice President and CFO of LoJack Corporation, a leading manufacturer of stolen vehicle recovery systems
for cars, trucks and SUVs. Mr. O’Connor also served in senior finance roles for American Tower Corp. (NYSE: AMT), a leading wireless
and broadcast communications infrastructure company, Procter & Gamble (NYSE: PG), and The Gillette Company.
Mr. O’Connor holds a
BS in Finance and Accounting from Northeastern University.
Kathleen Griffin Stack, Independent Director
Ms. Stack has over three decades
of experience as an investor and research analyst in the consumer products sector.
Ms. Stack served most recently
as Managing Director at J.P Morgan Asset Management until 2015, where she was responsible for equity investments within the U.S. consumer
products sector across institutional and retail funds. Her career at J.P Morgan Chase & Co. spanned 34 years, 32 years of which she
was the U.S. Consumer Products Research Analyst. In addition, she served as Global Team Leader for consumer products equity investments
in the Global Analyst Portfolio, as Portfolio Manager for the U.S. Analyst Fund, and as U.S. Equity Research Analyst for the web hosting,
internet infrastructure, regional banking and brokerage sectors.
Prior to joining Morgan Guaranty
Trust Company of New York (the predecessor to J.P Morgan Chase & Co.), Ms. Stack was an Associate at Donaldson, Lufkin & Jenrette,
Incorporated, and an Assistant Vice President at Lehman Brothers Kuhn Loeb, Incorporated. She began her career at Lehman Brothers Incorporated,
where she was the first Research Assistant in the U.S. Equity Research Department. Ms. Stack was recognized over multiple years by Institutional
Investor Magazine as “Best of the Buy Side”.
Ms. Stack holds an A.B. in
Mathematical Economics from Colgate University and an M.B.A. in Finance from The Wharton School, University of Pennsylvania.
Michael Weinstein, Independent Director
Mr. Weinstein is a consumer
marketing professional with a long and successful track record focused on the beverage industry.
Mr. Weinstein most recently
was Chairman of INOV8 Beverage Consulting Group and its predecessor, INOV8 Beverages, which he co-founded in 2004. His career spans nearly
50 years, starting with positions of increasing responsibility at the Pepsi-Cola Company and Kenyon & Eckhardt Advertising. Later
in his career, he served as President and COO of A&W Brands Inc., CEO of Triarc Beverage Group (which included the Snapple, Royal
Crown, Mistic and Stewart’s brands) until its sale to Cadbury Schweppes, and President of Global Innovation and Business Development
at Cadbury Schweppes.
Mr. Weinstein currently serves
as a board member of privately held King Juice (Calypso Lemonade) and Eska Water. Previously, he served on the boards of the H. J. Heinz
Company, Dr. Pepper Snapple, Bob Evans Farms, A&W Brands Inc. and Tampico Beverages. Accolades include Beverage Industry Executive
of the Year and induction into the Beverage World Hall of Fame.
Mr. Weinstein holds a BA from
Lafayette College and an MBA from Harvard Business School.
Initial Business Combination
So long as our securities
are then listed on Nasdaq, our initial business combination must occur with one or more target businesses that together have an aggregate
fair market value of at least 80% of the net assets held in the trust account (excluding the deferred underwriting commissions and taxes
payable on the interest earned on the trust account) at the time of signing a definitive agreement in connection with our initial business
combination. If our board of directors is not able to independently determine the fair market value of the target business or businesses,
we will obtain an opinion from an independent investment banking firm or an independent valuation or appraisal firm with respect to the
satisfaction of such criteria. While we consider it unlikely that our board will not be able to make an independent determination of the
fair market value of a target business or businesses, it may be unable to do so if the board is less familiar or experienced with the
target company’s business, there is a significant amount of uncertainty as to the value of the company’s assets or prospects,
including if such company is at an early stage of development, operations or growth, or if the anticipated transaction involves a complex
financial analysis or other specialized skills and the board determines that outside expertise would be helpful or necessary in conducting
such analysis. Since any opinion, if obtained, would merely state that the fair market value of the target business meets the 80% of net
assets threshold, unless such opinion includes material information regarding the valuation of a target business or the consideration
to be provided, it is not anticipated that copies of such opinion would be distributed to our shareholders. However, if required under
applicable law, any proxy statement that we deliver to shareholders and file with the SEC in connection with a proposed transaction will
include such opinion.
We anticipate structuring
our initial business combination so that the post-business combination company in which our Public Shareholders own shares will own or
acquire 100% of the equity interests or assets of the target business or businesses. We may, however, structure our initial business combination
such that the post-business combination company owns or acquires less than 100% of such interests or assets of the target business in
order to meet certain objectives of the target management team or shareholders or for other reasons, but we will only complete such business
combination if the post-business combination company owns or acquires 50% or more of the outstanding voting securities of the target or
otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under
the Investment Company Act of 1940, as amended (the “Investment Company Act”). Even if the post-business combination company
owns or acquires 50% or more of the voting securities of the target, our shareholders prior to the business combination may collectively
own a minority interest in the post-business combination company, depending on valuations ascribed to the target and us in the business
combination. For example, we could pursue a transaction in which we issue a substantial number of new shares in exchange for all of the
outstanding capital stock of a target. In this case, we would acquire a 100% controlling interest in the target. However, as a result
of the issuance of a substantial number of new shares, our shareholders immediately prior to our initial business combination could own
less than a majority of our outstanding shares subsequent to our initial business combination. If less than 100% of the equity interests
or assets of a target business or businesses are owned or acquired by the post-business combination company, the portion of such business
or businesses that is owned or acquired is what will be valued for purposes of the 80% of net assets test. If the business combination
involves more than one target business, the 80% of net assets test will be based on the aggregate value of all of the target businesses.
In addition, we have agreed not to enter into a definitive agreement regarding an initial business combination without the prior consent
of our Sponsor. If our securities are not then listed on Nasdaq for whatever reason, we would no longer be required to meet the foregoing
80% of net asset test.
To the extent we effect our
initial business combination with a company or business that may be financially unstable or in its early stages of development or growth,
we may be affected by numerous risks inherent in such company or business. Although our Management will endeavor to evaluate the risks
inherent in a particular target business, we cannot assure you that we will properly ascertain or assess all significant risk factors.
The time required to select
and evaluate a target business and to structure and complete our initial business combination, and the costs associated with this process,
are not currently ascertainable with any degree of certainty. Any costs incurred with respect to the identification and evaluation of
a prospective target business with which our initial business combination is not ultimately completed will result in our incurring losses
and will reduce the funds we can use to complete another business combination.
Our Forward Purchase Agreement
We believe our ability to
complete our initial business combination will be enhanced by the additional capital made available to us pursuant to the Forward Purchase
Agreement. Under the Forward Purchase Agreement, in exchange for $824,500 paid to us, GEPT has the right, in its discretion, to purchase
a number of units designated by the Company, up to the lesser of (i) $50,000,000 of units and (ii) a number of units equal to 19.99% of
the pro forma equity outstanding at the time of the closing of our initial business combination, including but not limited to, any Ordinary
Shares issued in connection with our initial public offering, the Forward Purchase Agreement or any private placement or other offering
or to any seller in the initial business combination, with each unit consisting of one Class A ordinary share and 0.425 of one warrant
to purchase one Class A ordinary share at $11.50 per share, subject to adjustment, for a purchase price of $10.00 per unit, in a private
placement to occur concurrently with the closing of our initial business combination, and the right to acquire a specified number of Class
B ordinary shares and Private Placement Warrants as described below.
If GEPT purchases the maximum
number of forward purchase units available to it under the Forward Purchase Agreement, we will issue to GEPT, at the closing of our initial
business combination and prior to the conversion of the Class B ordinary shares into Class A ordinary shares in accordance with the terms
thereof (the “GEPT Issuance”):
| ● | a number of Class B ordinary shares (the “GEPT Class B ordinary shares”) that is equal to
12.5% of the aggregate number of Class B ordinary shares outstanding at the time of our initial business combination prior to the conversion
of such Class B ordinary shares into Class A ordinary shares pursuant to the terms thereof and after giving effect to the issuance of
the GEPT Class B ordinary shares and any other Class B ordinary shares as a result of anti-dilution rights or other adjustments and the
number of Class B ordinary shares transferred, assigned, sold or forfeited in connection with our initial business combination but excluding
115,000 Class B ordinary shares from such calculation (the “Post-Business Combination Class B ordinary shares”) (provided,
however, that if the Founder Shares are converted into Class A ordinary shares prior to the date of our initial business combination,
GEPT will receive a number of Class A ordinary shares equal to the number of Class A ordinary shares that it would have been entitled
to pursuant to the GEPT Issuance); and |
| ● | a number of Private Placement Warrants equal to 12.5% of the aggregate number of Private Placement Warrants
outstanding at the time of our initial business combination prior to the conversion of such Class B ordinary shares into Class A ordinary
shares pursuant to the terms thereof and after giving effect to any Private Placement Warrants transferred, assigned, sold or forfeited
in connection with our initial business combination (the “Post-Business Combination Private Placement Warrants”). |
Additionally, if GEPT purchases
the maximum number of forward purchase units available to it under the Forward Purchase Agreement, in order to help facilitate a business
combination, our Sponsor has agreed to forfeit to us for no consideration a number of Class B ordinary shares and Private Placement Warrants
(the “Sponsor Forfeiture”) such that after the Sponsor Forfeiture and the GEPT Issuance, our Sponsor will own (i) a number
of Class B ordinary shares equal to 87.5% of the number of Post-Business Combination Class B ordinary shares plus 15,000 Class B ordinary
shares, and (ii) a number of Private Placement Warrants equal to 87.5% of the number of Post-Business Combination Private Placement Warrants.
We will determine the number
of forward purchase units to be sold under the Forward Purchase Agreement and GEPT’s obligation to purchase such units will be subject
to the satisfaction of certain conditions, including, among others, the delivery by GEPT of a notice to us that it will purchase the Forward
Purchase Securities in whole or in part. The rights of GEPT under the Forward Purchase Agreement do not depend on whether any Class A
ordinary shares are redeemed by our Public Shareholders. If GEPT does not purchase the maximum number of forward purchase units available
to it under the Forward Purchase Agreement, GEPT will not be entitled to receive any of the Founder Shares or Private Placement Warrants
described above, and we will be entitled to retain the $824,500 paid to us by GEPT.
The terms of the Forward Purchase
Shares and Forward Purchase Warrants, respectively, will generally be identical to the terms of the Class A ordinary shares and the redeemable
warrants included in the units issued in our initial public offering, except that the Forward Purchase Shares will not be entitled to
redemption rights or to vote on our initial business combination, and the Forward Purchase Securities will have certain registration rights,
as described in the final prospectus relating to our initial public offering. In the event that GEPT purchases less than 5,000,000 units
pursuant to the Forward Purchase Agreement, our Sponsor will forfeit to us, for no consideration, up to 1,250,000 Class B ordinary shares
depending on the number of units purchased.
Other Considerations
We are not prohibited from
pursuing an initial business combination with a company that is affiliated with our Sponsor, officers or directors. In the event we seek
to complete our initial business combination with a company that is affiliated with our Sponsor or any of our officers or directors, we,
or a committee of independent directors, will obtain an opinion from an independent investment banking firm or another independent entity
that commonly renders valuation opinions that such initial business combination is fair to our company from a financial point of view.
We are not required to obtain such an opinion in any other context.
In addition, certain of our
officers and directors presently have, and any of them in the future may have additional, fiduciary and contractual duties to other entities.
As a result, if any of our officers or directors becomes aware of a business combination opportunity which is suitable for an entity to
which he or she has then-current fiduciary or contractual obligations, then, he or she may be required to honor such fiduciary or contractual
obligations to present such business combination opportunity to such entity, before we can pursue such opportunity. If these other entities
decide to pursue any such opportunity, we may be precluded from pursuing the same. However, we do not expect these duties to materially
affect our ability to complete our initial business combination. To address the matters set out above our Amended and Restated Memorandum
and Articles of Association provide that, to the maximum extent permitted by law, we renounce any interest or expectancy in, or in being
offered an opportunity to participate in any business combination opportunity which may be a corporate opportunity for both us and our
Sponsor and another entity, including any entities managed by our Sponsor or its affiliates and any companies in which our Sponsor or
such entities have invested about which any of our officers or directors acquires knowledge and we will waive any claim or cause of action
we may have in respect thereof. In addition, our Amended and Restated Memorandum and Articles of Association contain provisions to exculpate
and indemnify, to the maximum extent permitted by law, such persons in respect of any liability, obligation or duty to the company that
may arise as a consequence of such persons becoming aware of any business opportunity or failing to present such business opportunity.
Our Sponsor, officers and
directors may Sponsor, form or participate in other blank check companies similar to ours during the period in which we are seeking an
initial business combination. Any such companies may present additional conflicts of interest in pursuing an acquisition target, particularly
in the event there is overlap among investment mandates. However, we do not currently expect that any such other blank check company would
materially affect our ability to complete our initial business combination. In addition, our Sponsor, officers and directors are not required
to commit any specified amount of time to our affairs, and, accordingly, will have conflicts of interest in allocating management time
among various business activities, including identifying potential business combinations and monitoring the related due diligence.
Status as a Public Company
We believe our structure will
make us an attractive business combination partner to target businesses. As an existing public company, we offer a target business an
alternative to the traditional initial public offering through a merger or other business combination with us. In a business combination
transaction with us, the owners of the target business may, for example, exchange their shares of stock in the target business for our
Class A ordinary shares (or shares of a new holding company) or for a combination of our Class A ordinary shares and cash, allowing us
to tailor the consideration to the specific needs of the sellers. We believe target businesses will find this method a more expeditious
and cost effective method to becoming a public company than the typical initial public offering. The typical initial public offering process
takes a significantly longer period of time than the typical business combination transaction process, and there are significant expenses
in the initial public offering process, including underwriting discounts and commissions, that may not be present to the same extent in
connection with a business combination with us.
Furthermore, once a proposed
business combination is completed, the target business will have effectively become public, whereas an initial public offering is always
subject to the underwriters’ ability to complete the offering, as well as general market conditions, which could delay or prevent
the offering from occurring or have negative valuation consequences. Once public, we believe the target business would then have greater
access to capital, an additional means of providing management incentives consistent with shareholders’ interests and the ability
to use its shares as currency for acquisitions. Being a public company can offer further benefits by augmenting a company’s profile
among potential new customers and vendors and aid in attracting talented employees.
While we believe that our
structure and our Management Team’s backgrounds will make us an attractive business partner, some potential target businesses may
view our status as a blank check company, such as our lack of an operating history and our ability to seek shareholder approval of any
proposed initial business combination, negatively.
We are an “emerging
growth company,” as defined in Section 2(a) of the Securities Act, as modified by the JOBS Act. As such, we are eligible to take
advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging
growth companies” including, but not limited to, not being required to comply with the auditor attestation requirements of Section
404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements,
and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and shareholder approval of any
golden parachute payments not previously approved, If some investors find our securities less attractive as a result, there may be a less
active trading market for our securities and the prices of our securities may be more volatile.
In addition, Section 107 of
the JOBS Act also provides that an “emerging growth company” can take advantage of the extended transition period provided
in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an “emerging
growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies.
We intend to take advantage of the benefits of this extended transition period.
We will remain an emerging
growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary of the completion of our initial
public offering, (b) in which we have total annual gross revenue of at least $1.07 billion, or (c) in which we are deemed to be a large
accelerated filer, which means the market value of our Class A ordinary shares that are held by non-affiliates exceeds $700 million as
of the prior June 30th, and (2) the date on which we have issued more than $1.0 billion in non-convertible debt during the
prior three-year period.
Additionally, we are a “smaller
reporting company” as defined in Item 10(f)(1) of Regulation S-K. Smaller reporting companies may take advantage of certain reduced
disclosure obligations, including, among other things, providing only two years of audited financial statements. We will remain a smaller
reporting company until the last day of the fiscal year in which (1) the market value of our Ordinary Shares held by non-affiliates exceeds
$250 million as of the prior June 30, or (2) our annual revenues exceeded $100 million during such completed fiscal year and the market
value of our Ordinary Shares held by non-affiliates exceeds $700 million as of the prior June 30.
Financial Position
With funds available for a
business combination initially in the amount of approximately $221.9 million (such amount representing the amount of proceeds held in
the trust account less approximately $8.1 million of deferred underwriting fees), we offer a target business a variety of options such
as creating a liquidity event for its owners, providing capital for the potential growth and expansion of its operations or strengthening
its balance sheet by reducing its debt ratio. Because we are able to complete our initial business combination using our cash, debt or
equity securities, or a combination of the foregoing, we have the flexibility to use the most efficient combination that will allow us
to tailor the consideration to be paid to the target business to fit its needs and desires. However, we have not taken any steps to secure
third-party financing and there can be no assurance it will be available to us.
Effecting Our Initial Business Combination
General
We are not presently engaged
in, and we will not engage in, any operations for an indefinite period of time following our initial public offering. We intend to effectuate
our initial business combination using cash from the proceeds of our initial public offering and the private placement of the Private
Placement Warrants, the proceeds of the sale of our shares in connection with our initial business combination (pursuant to any forward
purchase agreement or other forward purchase agreements or backstop agreements we may enter into following the consummation of our initial
public offering or otherwise), shares issued to the owners of the target, debt issued to bank or other lenders or the owners of the target,
or a combination of the foregoing or other sources. We may seek to complete our initial business combination with a company or business
that may be financially unstable or in its early stages of development or growth, which would subject us to the numerous risks inherent
in such companies and businesses.
If our initial business combination
is paid for using equity or debt, or not all of the funds released from the trust account are used for payment of the consideration in
connection with our initial business combination or used for redemptions of our Class A ordinary shares, we may apply the balance of the
cash released to us from the trust account for general corporate purposes, including for maintenance or expansion of operations of the
post-business combination company, the payment of principal or interest due on indebtedness incurred in completing our initial business
combination, to fund the purchase of other companies or for working capital.
We have not selected any business
combination target. Although our Management
will assess the risks inherent in a particular target business with which we may combine, we cannot assure you that this assessment will
result in our identifying all risks that a target business may encounter. Furthermore, some of those risks may be outside of our control,
meaning that we can do nothing to control or reduce the chances that those risks will adversely affect a target business.
We may need to obtain additional
financing to complete our initial business combination, either because the transaction requires more cash than is available from the proceeds
held in our trust account, or because we become obligated to redeem a significant number of our Public Shares upon completion of the business
combination, in which case we may issue additional securities or incur debt in connection with such business combination. There are no
prohibitions on our ability to issue securities or incur debt in connection with our initial business combination. We are not currently
a party to any arrangement or understanding with any third party with respect to raising any additional funds through the sale of securities,
the incurrence of debt or otherwise.
Sources of Target Businesses
We anticipate that target
business candidates will continue to be brought to our attention from various unaffiliated sources, including investment market participants,
private equity groups, investment banking firms, consultants, accounting firms and large business enterprises. Target businesses may be
brought to our attention by such unaffiliated sources as a result of being solicited by us through calls or mailings. These sources may
also introduce us to target businesses in which they think we may be interested on an unsolicited basis, since some of these sources will
have read this Report and know what types of businesses we are targeting. Our officers and directors, as well as their affiliates, may
also bring to our attention target business candidates that they become aware of through their business contacts as a result of formal
or informal inquiries or discussions they may have, as well as attending trade shows or conventions. In addition, we expect to receive
a number of proprietary deal flow opportunities that would not otherwise necessarily be available to us as a result of the business relationships
of our officers and directors. While we do not presently anticipate engaging the services of professional firms or other individuals that
specialize in business acquisitions on any formal basis, we may engage these firms or other individuals in the future, in which event
we may pay a finder’s fee, consulting fee or other compensation to be determined in an arm’s length negotiation based on the
terms of the transaction. We will engage a finder only to the extent our Management determines that the use of a finder may bring opportunities
to us that may not otherwise be available to us or if finders approach us on an unsolicited basis with a potential transaction that our
Management determines is in our best interest to pursue. Payment of finder’s fees is customarily tied to completion of a transaction,
in which case any such fee will be paid out of the funds held in the trust account. In no event, however, will our Sponsor or any of our
existing officers or directors, or their respective affiliates be paid by us any finder’s fee, consulting fee or other compensation
prior to, or for any services they render in order to effectuate, the completion of our initial business combination (regardless of the
type of transaction that it is). We have agreed to pay an affiliate of our Sponsor a total of $10,000 per month for office space, secretarial
and administrative support and to reimburse our Sponsor for any out-of-pocket expenses related to identifying, investigating and completing
an initial business combination. Some of our officers and directors may enter into employment or consulting agreements with the post-business
combination company following our initial business combination. The presence or absence of any such fees or arrangements will not be used
as a criterion in our selection process of an acquisition candidate.
We are not prohibited from
pursuing an initial business combination with a company that is affiliated with our Sponsor, officers or directors. In the event we seek
to complete our initial business combination with a company that is affiliated with our Sponsor or any of our officers or directors, we,
or a committee of independent directors, will obtain an opinion from an independent investment banking firm or another independent entity
that commonly renders valuation opinions that such initial business combination is fair to our company from a financial point of view.
We are not required to obtain such an opinion in any other context.
Each of our officers and directors
presently has, and any of them in the future may have, additional, fiduciary or contractual obligations to other entities, including entities
that are affiliates of our Sponsor, pursuant to which such officer or director is or will be required to present a business combination
opportunity to such entity. Accordingly, if any of our officers or directors becomes aware of a business combination opportunity which
is suitable for an entity to which he or she has then-current fiduciary or contractual obligations, he or she may be required to honor
his or her fiduciary or contractual obligations to present such business combination opportunity to such entity, subject to their fiduciary
duties under Cayman Islands law. See “Management — Conflicts of Interest.”
Evaluation of a Target Business and Structuring
of Our Initial Business Combination
In evaluating a prospective
target business, we expect to conduct an extensive due diligence review which may encompass, as applicable and among other things, meetings
with incumbent management and employees, document reviews, interviews of customers and suppliers, inspection of facilities and a review
of financial and other information about the target and its industry. We will also utilize our Management Team’s operational and
capital planning experience. If we determine to move forward with a particular target, we will proceed to structure and negotiate the
terms of the business combination transaction.
The time required to select
and evaluate a target business and to structure and complete our initial business combination, and the costs associated with this process,
are not currently ascertainable with any degree of certainty. Any costs incurred with respect to the identification and evaluation of,
and negotiation with, a prospective target business with which our initial business combination is not ultimately completed will result
in our incurring losses and will reduce the funds we can use to complete another business combination. The company will not pay any consulting
fees to members of our Management Team, or their respective affiliates, for services rendered to or in connection with our initial business
combination. In addition, we have agreed not to enter into a definitive agreement regarding an initial business combination without the
prior consent of our Sponsor.
Lack of Business Diversification
For an indefinite period of
time after the completion of our initial business combination, the prospects for our success may depend entirely on the future performance
of a single business. Unlike other entities that have the resources to complete business combinations with multiple entities in one or
several industries, it is probable that we will not have the resources to diversify our operations and mitigate the risks of being in
a single line of business. By completing our initial business combination with only a single entity, our lack of diversification may:
| ● | subject us to negative economic, competitive and regulatory developments, any or all of which may have
a substantial adverse impact on the particular industry in which we operate after our initial business combination; and |
| ● | cause us to depend on the marketing and sale of a single product or limited number of products or services. |
Limited Ability to Evaluate the Target’s
Management Team
Although we intend to closely
scrutinize the management of a prospective target business when evaluating the desirability of effecting our initial business combination
with that business, our assessment of the target business’s management may not prove to be correct. In addition, the future management
may not have the necessary skills, qualifications or abilities to manage a public company. Furthermore, the future role of members of
our Management Team, if any, in the target business cannot presently be stated with any certainty. The determination as to whether any
of the members of our Management Team will remain with the combined company will be made at the time of our initial business combination.
While it is possible that one or more of our directors will remain associated in some capacity with us following our initial business
combination, it is unlikely that any of them will devote their full efforts to our affairs subsequent to our initial business combination.
Moreover, we cannot assure you that members of our Management Team will have significant experience or knowledge relating to the operations
of the particular target business.
We cannot assure you that
any of our key personnel will remain in senior management or advisory positions with the combined company. The determination as to whether
any of our key personnel will remain with the combined company will be made at the time of our initial business combination.
Following a business combination,
we may seek to recruit additional managers to supplement the incumbent management of the target business. We cannot assure you that we
will have the ability to recruit additional managers, or that additional managers will have the requisite skills, knowledge or experience
necessary to enhance the incumbent management.
Shareholders May Not Have the Ability to
Approve Our Initial Business Combination
We may conduct redemptions
without a shareholder vote pursuant to the tender offer rules of the SEC subject to the provisions of our Amended and Restated Memorandum
and Articles of Association. However, we will seek shareholder approval if it is required by applicable law or stock exchange listing
requirement, or we may decide to seek shareholder approval for business or other reasons.
Under the listing rules of
Nasdaq, shareholder approval would typically be required for our initial business combination if, for example:
| ● | We issue Ordinary Shares that will be equal to or in excess of 20% of the number of our Ordinary Shares
then-outstanding (other than in a public offering); |
| ● | Any of our directors, officers or shareholders has a certain ownership interest, directly or indirectly,
in the target business or assets to be acquired or otherwise and the present or potential issuance of Ordinary Shares could result in
an increase in issued and outstanding Ordinary Shares or voting power of a specified percentage; or |
| ● | The issuance or potential issuance of Ordinary Shares will result in our undergoing a change of control. |
The decision as to whether
we will seek shareholder approval of a proposed business combination in those instances in which shareholder approval is not required
by law will be made by us, solely in our discretion, and will be based on business and reasons, which include a variety of factors, including,
but not limited to:
| ● | the timing of the transaction, including in the event we determine shareholder approval would require
additional time and there is either not enough time to seek shareholder approval or doing so would place the company at a disadvantage
in the transaction or result in other additional burdens on the company; |
| ● | the expected cost of holding a shareholder vote; |
| ● | the risk that the shareholders would fail to approve the proposed business combination; |
| ● | other time and budget constraints of the company; and |
| ● | additional legal complexities of a proposed business combination that would be time-consuming and burdensome
to present to shareholders. |
Permitted Purchases of Our Securities
If we seek shareholder approval
of our initial business combination and we do not conduct redemptions in connection with our initial business combination pursuant to
the tender offer rules, our Sponsor, directors, executive officers, advisors or their affiliates may purchase Public Shares or warrants
in privately negotiated transactions or in the open market either prior to or following the completion of our initial business combination.
Additionally, at any time at or prior to our initial business combination, subject to applicable securities laws (including with respect
to material nonpublic information), our Sponsor, directors, executive officers, advisors or their affiliates may enter into transactions
with investors and others to provide them with incentives to acquire Public Shares, vote their Public Shares in favor of our initial business
combination or not redeem their Public Shares. However, they have no current commitments, plans or intentions to engage in such transactions
and have not formulated any terms or conditions for any such transactions. None of the funds in the trust account will be used to purchase
Public Shares or warrants in such transactions. If they engage in such transactions, they will be restricted from making any such purchases
when they are in possession of any material non-public information not disclosed to the seller or if such purchases are prohibited by
Regulation M under the Exchange Act.
In the event that our Sponsor,
directors, officers, advisors or their affiliates purchase shares in privately negotiated transactions from Public Shareholders who have
already elected to exercise their redemption rights or submitted a proxy to vote against our initial business combination, such selling
shareholders would be required to revoke their prior elections to redeem their shares and any proxy to vote against our initial business
combination. We do not currently anticipate that such purchases, if any, would constitute a tender offer subject to the tender offer rules
under the Exchange Act or a going-private transaction subject to the going-private rules under the Exchange Act; however, if the purchasers
determine at the time of any such purchases that the purchases are subject to such rules, the purchasers will be required to comply with
such rules.
The purpose of any such transaction
could be to (i) vote in favor of the business combination and thereby increase the likelihood of obtaining shareholder approval of the
business combination, (ii) reduce the number of public warrants outstanding or vote such warrants on any matters submitted to the warrant
holders for approval in connection with our initial business combination or (iii) satisfy a closing condition in an agreement with a target
that requires us to have a minimum net worth or a certain amount of cash at the closing of our initial business combination, where it
appears that such requirement would otherwise not be met. Any such purchases of our securities may result in the completion of our initial
business combination that may not otherwise have been possible.
In addition, if such purchases
are made, the public “float” of our Class A ordinary shares or public warrants may be reduced and the number of beneficial
holders of our securities may be reduced, which may make it difficult to maintain or obtain the quotation, listing or trading of our securities
on a national securities exchange.
Our Sponsor, officers, directors
and/or their affiliates anticipate that they may identify the shareholders with whom our Sponsor, officers, directors or their affiliates
may pursue privately negotiated transactions by either the shareholders contacting us directly or by our receipt of redemption requests
submitted by shareholders (in the case of Class A ordinary shares) following our mailing of tender offer or proxy materials in connection
with our initial business combination. To the extent that our Sponsor, officers, directors, advisors or their affiliates enter into a
private transaction, they would identify and contact only potential selling or redeeming shareholders who have expressed their election
to redeem their shares for a pro rata share of the trust account or vote against our initial business combination, whether or not such
shareholder has already submitted a proxy with respect to our initial business combination but only if such shares have not already been
voted at the shareholder meeting related to our initial business combination. Our Sponsor, executive officers, directors, advisors or
their affiliates will select which shareholders to purchase shares from based on the negotiated price and number of shares and any other
factors that they may deem relevant, and will be restricted from purchasing shares if such purchases do not comply with Regulation M under
the Exchange Act and the other federal securities laws.
Our Sponsor, officers, directors
and/or their affiliates will be restricted from making purchases of shares if the purchases would violate Section 9(a)(2) or Rule 10b-5
of the Exchange Act. We expect any such purchases would be reported by such person pursuant to Section 13 and Section 16 of the Exchange
Act to the extent such purchasers are subject to such reporting requirements.
Redemption Rights for Public Shareholders
upon Completion of Our Initial Business Combination
We will provide our Public
Shareholders with the opportunity to redeem all or a portion of their Class A ordinary shares upon the completion of our initial business
combination at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account calculated as of
two business days prior to the consummation of the initial business combination, including interest earned on the funds held in the trust
account and not previously released to us to pay our income taxes, if any, divided by the number of then-outstanding Public Shares, subject
to the limitations described herein. The amount in the trust account is initially anticipated to be $10.00 per Public Share. The per-share
amount we will distribute to investors who properly redeem their shares will not be reduced by the deferred underwriting commissions we
will pay to the underwriters. The redemption rights will include the requirement that a beneficial holder must identify itself in order
to validly redeem its shares. There will be no redemption rights upon the completion of our initial business combination with respect
to our warrants. Further, we will not proceed with redeeming our Public Shares, even if a Public Shareholder has properly elected to redeem
its shares, if a business combination does not close. Our Sponsor and each member of our Management Team have entered into an agreement
with us, pursuant to which they have agreed to waive their redemption rights with respect to any Founder Shares and Public Shares held
by them in connection with (i) the completion of our initial business combination and (ii) a shareholder vote to approve an amendment
to our Amended and Restated Memorandum and Articles of Association (A) that would modify the substance or timing of our obligation to
provide holders of our Class A ordinary shares the right to have their shares redeemed in connection with our initial business combination
or to redeem 100% of our Public Shares if we do not complete our initial business combination within 24 months from the closing of our
initial public offering or (B) with respect to any other provision relating to the rights of holders of our Class A ordinary shares.
Limitations on Redemptions
Our Amended and Restated Memorandum
and Articles of Association provide that in no event will we redeem our Public Shares in an amount that would cause our net tangible assets
to be less than $5,000,001 (so that we do not then become subject to the SEC’s “penny stock” rules). However, the proposed
business combination may require: (i) cash consideration to be paid to the target or its owners, (ii) cash to be transferred to the target
for working capital or other general corporate purposes or (iii) the retention of cash to satisfy other conditions in accordance with
the terms of the proposed business combination. In the event the aggregate cash consideration we would be required to pay for all Class
A ordinary shares that are validly submitted for redemption plus any amount required to satisfy cash conditions pursuant to the terms
of the proposed business combination exceed the aggregate amount of cash available to us, we will not complete the business combination
or redeem any shares, and all Class A ordinary shares submitted for redemption will be returned to the holders thereof.
Manner of Conducting Redemptions
We will provide our Public
Shareholders with the opportunity to redeem all or a portion of their Class A ordinary shares upon the completion of our initial business
combination either (i) in connection with a shareholder meeting called to approve the business combination or (ii) by means of a tender
offer. The decision as to whether we will seek shareholder approval of a proposed business combination or conduct a tender offer will
be made by us, solely in our discretion, and will be based on a variety of factors such as the timing of the transaction and whether the
terms of the transaction would require us to seek shareholder approval under applicable law or stock exchange listing requirement or whether
we were deemed to be a foreign private issuer (which would require a tender offer rather than seeking shareholder approval under SEC rules).
Asset acquisitions and share purchases would not typically require shareholder approval while direct mergers with our company and any
transactions where we issue more than 20% of our issued and outstanding Ordinary Shares or seek to amend our Amended and Restated Memorandum
and Articles of Association would typically require shareholder approval. We currently intend to conduct redemptions in connection with
a shareholder vote unless shareholder approval is not required by applicable law or stock exchange listing requirement or we choose to
conduct redemptions pursuant to the tender offer rules of the SEC for business or other reasons. So long as we obtain and maintain a listing
for our securities on Nasdaq, we will be required to comply with the rules of Nasdaq.
If we held a shareholder vote
to approve our initial business combination, we will, pursuant to our Amended and Restated Memorandum and Articles of Association:
| ● | conduct the redemptions in conjunction with a proxy solicitation pursuant to Regulation 14A of the Exchange
Act, which regulates the solicitation of proxies, and not pursuant to the tender offer rules; and |
| ● | file proxy materials with the SEC. |
In the event that we seek
shareholder approval of our initial business combination, we will distribute proxy materials and, in connection therewith, provide our
Public Shareholders with the redemption rights described above upon completion of the initial business combination.
If we seek shareholder approval,
we will complete our initial business combination only if a majority of the Ordinary Shares, represented in person or by proxy and entitled
to vote thereon, voted at a shareholder meeting are voted in favor of the business combination. In such case, our Sponsor and each member
of our Management Team have agreed to vote their Founder Shares and Public Shares in favor of our initial business combination. As a result,
in addition to our initial purchaser’s Founder Shares, we would need 8,000,001, or 34.8% (assuming all issued and outstanding shares
are voted), of the 23,000,000 Public Shares sold in our initial public offering to be voted in favor of an initial business combination
in order to have our initial business combination approved. Each Public Shareholder may elect to redeem their Public Shares irrespective
of whether they vote for or against the proposed transaction or vote at all. In addition, our Sponsor and each member of our Management
Team have entered into an agreement with us, pursuant to which they have agreed to waive their redemption rights with respect to any Founder
Shares and Public Shares held by them in connection with (i) the completion of a business combination and (ii) a shareholder vote to approve
an amendment to our Amended and Restated Memorandum and Articles of Association (A) that would modify the substance or timing of our obligation
to provide holders of our Class A ordinary shares the right to have their shares redeemed in connection with our initial business combination
or to redeem 100% of our Public Shares if we do not complete our initial business combination within 24 months from the closing of our
initial public offering or (B) with respect to any other provision relating to the rights of holders of our Class A ordinary shares.
If we conduct redemptions
pursuant to the tender offer rules of the SEC, we will, pursuant to our Amended and Restated Memorandum and Articles of Association:
| ● | conduct the redemptions pursuant to Rule 13e-4 and Regulation 14E of the Exchange Act, which regulate
issuer tender offers; and |
| ● | file tender offer documents with the SEC prior to completing our initial business combination which contain
substantially the same financial and other information about the initial business combination and the redemption rights as is required
under Regulation 14A of the Exchange Act, which regulates the solicitation of proxies. |
Upon the public announcement
of our initial business combination, if we elect to conduct redemptions pursuant to the tender offer rules, we and our Sponsor will terminate
any plan established in accordance with Rule 10b5-1 to purchase Class A ordinary shares in the open market, in order to comply with Rule
14e-5 under the Exchange Act.
In the event we conduct redemptions
pursuant to the tender offer rules, our offer to redeem will remain open for at least 20 business days, in accordance with Rule 14e-1(a)
under the Exchange Act, and we will not be permitted to complete our initial business combination until the expiration of the tender offer
period. In addition, the tender offer will be conditioned on Public Shareholders not tendering more than the number of Public Shares we
are permitted to redeem. If Public Shareholders tender more shares than we have offered to purchase, we will withdraw the tender offer
and not complete such initial business combination.
Limitation on Redemption upon Completion
of Our Initial Business Combination If We Seek Shareholder Approval
If we seek shareholder approval
of our initial business combination and we do not conduct redemptions in connection with our initial business combination pursuant to
the tender offer rules, our Amended and Restated Memorandum and Articles of Association will provide that a Public Shareholder, together
with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group”
(as defined under Section 13 of the Exchange Act), will be restricted from redeeming its shares with respect to more than an aggregate
of 15% of the shares sold in our initial public offering, which we refer to as “Excess Shares,” without our prior consent.
We believe this restriction will discourage shareholders from accumulating large blocks of shares, and subsequent attempts by such holders
to use their ability to exercise their redemption rights against a proposed business combination as a means to force us or our Management
to purchase their shares at a significant premium to the then-current market price or on other undesirable terms. Absent this provision,
a Public Shareholder holding more than an aggregate of 15% of the shares sold in our initial public offering could threaten to exercise
its redemption rights if such holder’s shares are not purchased by us, our Sponsor or our Management at a premium to the then-current
market price or on other undesirable terms. By limiting our shareholders’ ability to redeem no more than 15% of the shares sold
in our initial public offering without our prior consent, we believe we will limit the ability of a small group of shareholders to unreasonably
attempt to block our ability to complete our initial business combination, particularly in connection with a business combination with
a target that requires as a closing condition that we have a minimum net worth or a certain amount of cash.
However, we would not be restricting
our shareholders’ ability to vote all of their shares (including Excess Shares) for or against our initial business combination.
Tendering Share Certificates in Connection
with a Tender Offer or Redemption Rights
Public Shareholders seeking
to exercise their redemption rights, whether they are record holders or hold their shares in “street name,” will be required
to either tender their certificates (if any) to our transfer agent prior to the date set forth in the proxy solicitation or tender offer
materials, as applicable, mailed to such holders, or to deliver their shares to the transfer agent electronically using The Depository
Trust Company’s DWAC (Deposit/Withdrawal At Custodian) System, at the holder’s option, in each case up to two business days
prior to the initially scheduled vote to approve the business combination. The proxy solicitation or tender offer materials, as applicable,
that we will furnish to holders of our Public Shares in connection with our initial business combination will indicate the applicable
delivery requirements, which will include the requirement that a beneficial holder must identify itself in order to validly redeem its
shares. Accordingly, a Public Shareholder would have from the time we send out our tender offer materials until the close of the tender
offer period, or up to two business days prior to the initially scheduled vote on the proposal to approve the business combination if
we distribute proxy materials, as applicable, to tender its shares if it wishes to seek to exercise its redemption rights. Given the relatively
short period in which to exercise redemption rights, it is advisable for shareholders to use electronic delivery of their Public Shares.
There is a nominal cost associated
with the above-referenced tendering process and the act of certificating the shares or delivering them through the DWAC System. The transfer
agent will typically charge the tendering broker a fee of approximately $80.00 and it would be up to the broker whether or not to pass
this cost on to the redeeming holder. However, this fee would be incurred regardless of whether or not we require holders seeking to exercise
redemption rights to tender their shares. The need to deliver shares is a requirement of exercising redemption rights regardless of the
timing of when such delivery must be effectuated.
The foregoing is different
from the procedures used by many blank check companies. In order to perfect redemption rights in connection with their business combinations,
many blank check companies would distribute proxy materials for the shareholders’ vote on an initial business combination, and a
holder could simply vote against a proposed business combination and check a box on the proxy card indicating such holder was seeking
to exercise his or her redemption rights. After the business combination was approved, the company would contact such shareholder to arrange
for him or her to deliver his or her certificate to verify ownership. As a result, the shareholder then had an “option window”
after the completion of the business combination during which he or she could monitor the price of the company’s shares in the market.
If the price rose above the redemption price, he or she could sell his or her shares in the open market before actually delivering his
or her shares to the company for cancellation. As a result, the redemption rights, to which shareholders were aware they needed to commit
before the shareholder meeting, would become “option” rights surviving past the completion of the business combination until
the redeeming holder delivered its certificate. The requirement for physical or electronic delivery prior to the meeting ensures that
a redeeming shareholder’s election to redeem is irrevocable once the business combination is approved.
Any request to redeem such
shares, once made, may be withdrawn at any time up to two business days prior to the initially scheduled vote on the proposal to approve
the business combination, unless otherwise agreed to by us. Furthermore, if a holder of a public share delivered its certificate in connection
with an election of redemption rights and subsequently decides prior to the applicable date not to elect to exercise such rights, such
holder may simply request that the transfer agent return the certificate (physically or electronically). It is anticipated that the funds
to be distributed to holders of our Public Shares electing to redeem their shares will be distributed promptly after the completion of
our initial business combination.
If our initial business combination
is not approved or completed for any reason, then our Public Shareholders who elected to exercise their redemption rights would not be
entitled to redeem their shares for the applicable pro rata share of the trust account. In such case, we will promptly return any certificates
delivered by public holders who elected to redeem their shares.
If our initial proposed business
combination is not completed, we may continue to try to complete a business combination with a different target until 24 months from the
closing of our initial public offering.
Redemption of Public Shares and Liquidation
If No Initial Business Combination
Our Amended and Restated Memorandum
and Articles of Association provide that we will have only 24 months from the closing of our initial public offering to consummate an
initial business combination. If we have not consummated an initial business combination within 24 months from the closing of our initial
public offering, we will: (i) cease all operations except for the purpose of winding up; (ii) as promptly as reasonably possible but not
more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount
then on deposit in the trust account, including interest earned on the funds held in the trust account and not previously released to
us to pay our income taxes, if any (less up to $100,000 of interest to pay dissolution expenses) divided by the number of the then-outstanding
Public Shares, which redemption will completely extinguish Public Shareholders’ rights as shareholders (including the right to receive
further liquidation distributions, if any); and (iii) as promptly as reasonably possible following such redemption, subject to the approval
of our remaining shareholders and our board of directors, liquidate and dissolve, subject in the case of clauses (ii) and (iii) to our
obligations under Cayman Islands law to provide for claims of creditors and the requirements of other applicable law. There will be no
redemption rights or liquidating distributions with respect to our warrants, which will expire worthless if we fail to consummate an initial
business combination within 24 months from the closing of our initial public offering. Our Amended and Restated Memorandum and Articles
of Association will provide that, if a resolution of the company’s shareholders is passed pursuant to the Companies Law of the Cayman
Islands to commence the voluntary liquidation of the company, we will follow the foregoing procedures with respect to the liquidation
of the trust account as promptly as reasonably possible but not more than ten business days thereafter, subject to applicable Cayman Islands
law.
Our Sponsor and each member
of our Management Team have entered into an agreement with us, pursuant to which they have agreed to waive their rights to liquidating
distributions from the trust account with respect to any Founder Shares they hold if we fail to consummate an initial business combination
within 24 months from the closing of our initial public offering (although they will be entitled to liquidating distributions from the
trust account with respect to any Public Shares they hold if we fail to complete our initial business combination within the prescribed
time frame).
Our Sponsor, executive officers
and directors have agreed, pursuant to a written agreement with us, that they will not propose any amendment to our Amended and Restated
Memorandum and Articles of Association (A) that would modify the substance or timing of our obligation to provide holders of our Class
A ordinary shares the right to have their shares redeemed in connection with our initial business combination or to redeem 100% of our
Public Shares if we do not complete our initial business combination within 24 months from the closing of our initial public offering
or (B) with respect to any other provision relating to the rights of holders of our Class A ordinary shares, in each case, unless we provide
our Public Shareholders with the opportunity to redeem their Public Shares upon approval of any such amendment at a per-share price, payable
in cash, equal to the aggregate amount then on deposit in the trust account, including interest earned on the funds held in the trust
account and not previously released to us to pay our income taxes, if any, divided by the number of the then-outstanding Public Shares.
However, we may not redeem our Public Shares in an amount that would cause our net tangible assets to be less than $5,000,001 (so that
we do not then become subject to the SEC’s “penny stock” rules). If this optional redemption right is exercised with
respect to an excessive number of Public Shares such that we cannot satisfy the net tangible asset requirement, we would not proceed with
the amendment or the related redemption of our Public Shares at such time. This redemption right shall apply in the event of the approval
of any such amendment, whether proposed by our Sponsor, any executive officer or director, or any other person.
We expect that all costs and
expenses associated with implementing our plan of dissolution, as well as payments to any creditors, will be funded from amounts remaining
out of the $1,000,000 held outside the trust account plus up to $100,000 of funds from the trust account available to us to pay dissolution
expenses, although we cannot assure you that there will be sufficient funds for such purpose.
If we were to expend all of
the net proceeds of our initial public offering and the sale of the Private Placement Warrants, other than the proceeds deposited in the
trust account, and without taking into account interest, if any, earned on the trust account, the per-share redemption amount received
by shareholders upon our dissolution would be $10.00. The proceeds deposited in the trust account could, however, become subject to the
claims of our creditors which would have higher priority than the claims of our Public Shareholders. We cannot assure you that the actual
per-share redemption amount received by shareholders will not be less than $10.00. While we intend to pay such amounts, if any, we cannot
assure you that we will have funds sufficient to pay or provide for all creditors’ claims.
Although we will seek to have
all vendors, service providers (other than our independent registered public accounting firm), prospective target businesses and other
entities with which we do business execute agreements with us waiving any right, title, interest or claim of any kind in or to any monies
held in the trust account for the benefit of our Public Shareholders, there is no guarantee that they will execute such agreements or
even if they execute such agreements that they would be prevented from bringing claims against the trust account including, but not limited,
to fraudulent inducement, breach of fiduciary responsibility or other similar claims, as well as claims challenging the enforceability
of the waiver, in each case in order to gain an advantage with respect to a claim against our assets, including the funds held in the
trust account. If any third-party refuses to execute an agreement waiving such claims to the monies held in the trust account, our Management
will perform an analysis of the alternatives available to it and will only enter into an agreement with a third-party that has not executed
a waiver if management believes that such third-party’s engagement would be significantly more beneficial to us than any alternative.
Examples of possible instances where we may engage a third-party that refuses to execute a waiver include the engagement of a third-party
consultant whose particular expertise or skills are believed by management to be significantly superior to those of other consultants
that would agree to execute a waiver or in cases where management is unable to find a service provider willing to execute a waiver. Jefferies
LLC and BMO Capital Markets Corp. will not execute an agreement with us waiving such claims to the monies held in the trust account. In
addition, there is no guarantee that such entities will agree to waive any claims they may have in the future as a result of, or arising
out of, any negotiations, contracts or agreements with us and will not seek recourse against the trust account for any reason. In order
to protect the amounts held in the trust account, our Sponsor has agreed that it will be liable to us if and to the extent any claims
by a third-party for services rendered or products sold to us (other than our independent registered public accounting firm), or a prospective
target business with which we have discussed entering into a transaction agreement, reduce the amounts in the trust account to below the
lesser of (i) $10.00 per Public Share and (ii) the actual amount per Public Share held in the trust account as of the date of the liquidation
of the trust account if less than $10.00 per Public Share due to reductions in the value of the trust assets, in each case net of the
interest that may be withdrawn to pay our tax obligations, provided that such liability will not apply to any claims by a third-party
or prospective target business that executed a waiver of any and all rights to seek access to the trust account nor will it apply to any
claims under our indemnity of the underwriters of our initial public offering against certain liabilities, including liabilities under
the Securities Act. In the event that an executed waiver is deemed to be unenforceable against a third-party, our Sponsor will not be
responsible to the extent of any liability for such third-party claims. However, we have not asked our Sponsor to reserve for such indemnification
obligations, nor have we independently verified whether our Sponsor has sufficient funds to satisfy its indemnity obligations and we believe
that our Sponsor’s only assets are securities of our company. Therefore, we cannot assure you that our Sponsor would be able to
satisfy those obligations. None of our officers or directors will indemnify us for claims by third parties including, without limitation,
claims by vendors and prospective target businesses.
In the event that the proceeds
in the trust account are reduced below the lesser of (i) $10.00 per Public Share and (ii) the actual amount per Public Share held in the
trust account as of the date of the liquidation of the trust account if less than $10.00 per Public Share due to reductions in the value
of the trust assets, in each case net of the amount of interest which may be withdrawn to pay our income tax obligations, and our Sponsor
asserts that it is unable to satisfy its indemnification obligations or that it has no indemnification obligations related to a particular
claim, our independent directors would determine whether to take legal action against our Sponsor to enforce its indemnification obligations.
While we currently expect that our independent directors would take legal action on our behalf against our Sponsor to enforce its indemnification
obligations to us, it is possible that our independent directors in exercising their business judgment may choose not to do so in any
particular instance. Accordingly, we cannot assure you that due to claims of creditors the actual value of the per-share redemption price
will not be less than $10.00 per Public Share.
We will seek to reduce the
possibility that our Sponsor will have to indemnify the trust account due to claims of creditors by endeavoring to have all vendors, service
providers (other than our independent registered public accounting firm), prospective target businesses or other entities with which we
do business execute agreements with us waiving any right, title, interest or claim of any kind in or to monies held in the trust account.
Our Sponsor will also not be liable as to any claims under our indemnity of the underwriters of our initial public offering against certain
liabilities, including liabilities under the Securities Act. We will have access to up to $1,000,000 following our initial public offering
and the sale of the Private Placement Warrants with which to pay any such potential claims (including costs and expenses incurred in connection
with our liquidation, currently estimated to be no more than approximately $100,000). In the event that we liquidate and it is subsequently
determined that the reserve for claims and liabilities is insufficient, shareholders who received funds from our trust account could be
liable for claims made by creditors, however such liability will not be greater than the amount of funds from our trust account received
by any such shareholder. In the event that our offering expenses exceed our estimate of $1,000,000, we may fund such excess with funds
from the funds not to be held in the trust account. In such case, the amount of funds we intend to be held outside the trust account would
decrease by a corresponding amount. Conversely, in the event that the offering expenses are less than our estimate of $1,000,000, the
amount of funds we intend to be held outside the trust account would increase by a corresponding amount. If we file a bankruptcy petition
or an involuntary bankruptcy petition is filed against us that is not dismissed, the proceeds held in the trust account could be subject
to applicable bankruptcy law, and may be included in our bankruptcy estate and subject to the claims of third parties with priority over
the claims of our shareholders. To the extent any bankruptcy claims deplete the trust account, we cannot assure you we will be able to
return $10.00 per Public Share to our Public Shareholders. Additionally, if we file a bankruptcy petition or an involuntary bankruptcy
petition is filed against us that is not dismissed, any distributions received by shareholders could be viewed under applicable debtor/creditor
and/or bankruptcy laws as either a “preferential transfer” or a “fraudulent conveyance.” As a result, a bankruptcy
court could seek to recover some or all amounts received by our shareholders. Furthermore, our board of directors may be viewed as having
breached its fiduciary duty to our creditors and/or may have acted in bad faith, and thereby exposing itself and our company to claims
of punitive damages, by paying Public Shareholders from the trust account prior to addressing the claims of creditors. We cannot assure
you that claims will not be brought against us for these reasons.
Our Public Shareholders will
be entitled to receive funds from the trust account only (i) in the event of the redemption of our Public Shares if we do not complete
our initial business combination within 24 months from the closing of our initial public offering, (ii) in connection with a shareholder
vote to amend our Amended and Restated Memorandum and Articles of Association (A) to modify the substance or timing of our obligation
to provide holders of our Class A ordinary shares the right to have their shares redeemed in connection with our initial business combination
or to redeem 100% of our Public Shares if we do not complete our initial business combination within 24 months from the closing of our
initial public offering or (B) with respect to any other provision relating to the rights of holders of our Class A ordinary shares, or
(iii) if they redeem their respective shares for cash upon the completion of the initial business combination. Public shareholders who
redeem their Class A ordinary shares in connection with a shareholder vote described in clause (ii) in the preceding sentence shall not
be entitled to funds from the trust account upon the subsequent completion of an initial business combination or liquidation if we have
not consummated an initial business combination within 24 months from the closing of our initial public offering, with respect to such
Class A ordinary shares so redeemed. In no other circumstances will a shareholder have any right or interest of any kind to or in the
trust account. In the event we seek shareholder approval in connection with our initial business combination, a shareholder’s voting
in connection with the business combination alone will not result in a shareholder’s redeeming its shares to us for an applicable
pro rata share of the trust account. Such shareholder must have also exercised its redemption rights described above. These provisions
of our Amended and Restated Memorandum and Articles of Association, like all provisions of our Amended and Restated Memorandum and Articles
of Association, may be amended with a shareholder vote.
Competition
In identifying, evaluating
and selecting a target business for our initial business combination, we may encounter intense competition from other entities having
a business objective similar to ours, including other blank check companies, private equity groups and leveraged buyout funds, public
companies and operating businesses seeking strategic acquisitions. Many of these entities are well established and have extensive experience
identifying and effecting business combinations directly or through affiliates. Moreover, many of these competitors possess greater financial,
technical, human and other resources than us. Our ability to acquire larger target businesses will be limited by our available financial
resources. This inherent limitation gives others an advantage in pursuing the acquisition of a target business. Furthermore, our obligation
to pay cash in connection with our Public Shareholders who exercise their redemption rights may reduce the resources available to us for
our initial business combination and our outstanding warrants, and the future dilution they potentially represent, may not be viewed favorably
by certain target businesses. Either of these factors may place us at a competitive disadvantage in successfully negotiating an initial
business combination.
Facilities
We currently maintain our
executive offices at 32 Elm Place, 2nd Floor, Rye, NY 10580. The cost for our use of this space is included in the $10,000 per month fee
we will pay to an affiliate of our Sponsor for office space, administrative and support services. We consider our current office space
adequate for our current operations.
Employees
We currently have three executive
officers. These individuals are not obligated to devote any specific number of hours to our matters but they intend to devote as much
of their time as they deem necessary to our affairs until we have completed our initial business combination. The amount of time they
will devote in any time period will vary based on whether a target business has been selected for our initial business combination and
the stage of the business combination process we are in. We do not intend to have any full time employees prior to the completion of our
initial business combination.
Periodic Reporting and Financial Information
We have registered our units,
Class A ordinary shares and warrants under the Exchange Act and have reporting obligations, including the requirement that we file annual,
quarterly and current reports with the SEC. In accordance with the requirements of the Exchange Act, our annual reports will contain financial
statements audited and reported on by our independent registered public accountants.
We will provide shareholders
with audited financial statements of the prospective target business as part of the proxy solicitation or tender offer materials, as
applicable, sent to shareholders. These financial statements may be required to be prepared in accordance with, or reconciled to, GAAP,
or IFRS, depending on the circumstances, and the historical financial statements may be required to be audited in accordance with the
standards of the PCAOB. These financial statement requirements may limit the pool of potential target businesses we may acquire because
some targets may be unable to provide such statements in time for us to disclose such statements in accordance with federal proxy rules
and complete our initial business combination within the prescribed time frame. We cannot assure you that any particular target business
identified by us as a potential acquisition candidate will have financial statements prepared in accordance with the requirements outlined
above, or that the potential target business will be able to prepare its financial statements in accordance with the requirements outlined
above. To the extent that these requirements cannot be met, we may not be able to acquire the proposed target business. While this may
limit the pool of potential acquisition candidates, we do not believe that this limitation will be material.
We are required to
evaluate our internal control procedures as of the fiscal year ending December 31, 2021 as required by the Sarbanes-Oxley Act. Our
management has determined that our working capital deficit, as well as the mandatory liquidation and subsequent dissolution if we do
not complete a business combination within 24 months from our initial public offering, raise substantial doubt about the
company’s ability to continue as a “going concern.” Only in the event we are deemed to be a large accelerated filer
or an accelerated filer and no longer qualify as an emerging growth company, will we be required to comply with the independent
registered public accounting firm attestation requirement on our internal control over financial reporting. A target business may
not be in compliance with the provisions of the Sarbanes-Oxley Act regarding adequacy of their internal controls. The development of
the internal controls of any such entity to achieve compliance with the Sarbanes-Oxley Act may increase the time and costs necessary
to complete any such acquisition.
Prior to the date of this
Report, we filed a Registration Statement on Form 8-A with the SEC to voluntarily register our securities under Section 12 of the Exchange
Act. As a result, we are subject to the rules and regulations promulgated under the Exchange Act. We have no current intention of filing
a Form 15 to suspend our reporting or other obligations under the Exchange Act prior or subsequent to the consummation of our initial
business combination.
We are a Cayman Islands exempted
company. Exempted companies are Cayman Islands companies conducting business mainly outside the Cayman Islands and, as such, are exempted
from complying with certain provisions of the Companies Law. As an exempted company, we have applied for and received a tax exemption
undertaking from the Cayman Islands government that, in accordance with Section 6 of the Tax Concessions Act (as amended) of the Cayman
Islands, for a period of 30 years from the date of the undertaking, no law which is enacted in the Cayman Islands imposing any tax to
be levied on profits, income, gains or appreciations will apply to us or our operations and, in addition, that no tax to be levied on
profits, income, gains or appreciations or which is in the nature of estate duty or inheritance tax will be payable (i) on or in respect
of our shares, debentures or other obligations or (ii) by way of the withholding in whole or in part of a payment of dividend or other
distribution of income or capital by us to our shareholders or a payment of principal or interest or other sums due under a debenture
or other obligation of us.
We are an “emerging
growth company,” as defined in Section 2(a) of the Securities Act, as modified by the JOBS Act. As such, we are eligible to take
advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging
growth companies” including, but not limited to, not being required to comply with the auditor attestation requirements of Section
404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements,
and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and shareholder approval of any
golden parachute payments not previously approved. If some investors find our securities less attractive as a result, there may be a less
active trading market for our securities and the prices of our securities may be more volatile.
In addition, Section 107 of
the JOBS Act also provides that an “emerging growth company” can take advantage of the extended transition period provided
in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an “emerging
growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies.
We intend to take advantage of the benefits of this extended transition period.
We will remain an emerging
growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary of the completion of our initial
public offering, (b) in which we have total annual gross revenue of at least $1.07 billion, or (c) in which we are deemed to be a large
accelerated filer, which means the market value of our Class A ordinary shares that are held by non-affiliates exceeds $700 million as
of the prior June 30th, and (2) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year
period.
Additionally, we are a “smaller
reporting company” as defined in Item 10(f)(1) of Regulation S-K. Smaller reporting companies may take advantage of certain reduced
disclosure obligations, including, among other things, providing only two years of audited financial statements. We will remain a smaller
reporting company until the last day of the fiscal year in which (1) the market value of our Ordinary Shares held by non-affiliates exceeds
$250 million as of the prior June 30, or (2) our annual revenues exceeded $100 million during such completed fiscal year and the market
value of our Ordinary Shares held by non-affiliates exceeds $700 million as of the prior June 30.
Item 1A. Risk Factors
An investment in our securities
involves a high degree of risk. You should consider carefully all of the risks described below, together with the other information contained
in this Report, before making a decision to invest in our securities. If any of the following events occur, our business, financial condition
and operating results may be materially adversely affected. In that event, the trading price of our securities could decline, and you
could lose all or part of your investment.
We have no operating history and no revenues,
and you have no basis on which to evaluate our ability to achieve our business objective.
We were formed in September
29, 2020 under the laws of the Cayman Islands and have no operating results. Because we lack an operating history, you have no basis upon
which to evaluate our ability to achieve our business objective of completing our initial business combination with one or more target
businesses. If we fail to complete our initial business combination, we will never generate
any operating revenues.
Past performance by our Management Team or
their respective affiliates may not be indicative of future performance of an investment in us.
Information regarding performance
is presented for informational purposes only. Any past experience or performance of our Management Team and their respective affiliates
is not a guarantee of either (i) our ability to successfully identify and execute a transaction or (ii) success with respect to any business
combination that we may consummate. You should not rely on the historical record of our Management Team or their respective affiliates
as indicative of the future performance of an investment in us or the returns we will, or are likely to, generate going forward. Our management
has no experience in operating special purpose acquisition companies.
Our shareholders may not be afforded an opportunity
to vote on our proposed initial business combination, which means we may complete our initial business combination even though a majority
of our shareholders do not support such a combination.
We may choose not to hold
a shareholder vote before we complete our initial business combination if the business combination would not require shareholder approval
under applicable law or stock exchange listing requirements. For instance, if we were seeking to acquire a target business where the consideration
we were paying in the transaction was all cash, we would typically not be required to seek shareholder approval to complete such a transaction.
Except for as required by applicable law or stock exchange listing requirements, the decision as to whether we will seek shareholder approval
of a proposed business combination or will allow shareholders to sell their shares to us in a tender offer will be made by us, solely
in our discretion, and will be based on a variety of factors, such as the timing of the transaction and whether the terms of the transaction
would otherwise require us to seek shareholder approval. Accordingly, we may complete our initial business combination even if holders
of a majority of our issued and outstanding Ordinary Shares do not approve of the business combination we complete.
Please see the section entitled
“Proposed Business — Shareholders May Not Have the Ability to Approve Our Initial Business Combination” for additional
information.
Your only opportunity to affect the investment
decision regarding a potential business combination may be limited to the exercise of your right to redeem your shares from us for cash.
At the time of your investment
in us, you will not be provided with an opportunity to evaluate the specific merits or risks of any target businesses. Since our board
of directors may complete a business combination without seeking shareholder approval, Public Shareholders may not have the right or opportunity
to vote on the business combination, unless we seek such shareholder approval. Accordingly, your only opportunity to affect the investment
decision regarding a potential business combination may be limited to exercising your redemption rights within the period of time (which
will be at least 20 business days) set forth in our tender offer documents mailed to our Public Shareholders in which we describe our
initial business combination.
If we seek shareholder approval of our initial
business combination, our Sponsor and members of our Management Team have agreed to vote in favor of such initial business combination,
regardless of how our Public Shareholders vote.
Our Initial Shareholders own,
on an as-converted basis, 20% of our outstanding Ordinary Shares immediately following the completion of our initial public offering plus
the number of Class A ordinary shares that may be sold pursuant to the Forward Purchase Agreement. Our Sponsor and members of our Management
Team also may from time to time purchase Class A ordinary shares prior to our initial business combination. Our Amended and Restated Memorandum
and Articles of Association provide that, if we seek shareholder approval, we will complete our initial business combination only if a
simple majority of the Ordinary Shares, represented in person or by proxy and entitled to vote thereon, voted at a shareholder meeting
are voted in favor of the business combination. As a result, in addition to our Initial Shareholders’ Founder Shares, we would need
8,000,001, or 34.8% (assuming all issued and outstanding shares are voted), or of the 23,000,000 Public Shares sold in our initial public
offering to be voted in favor of an initial business combination in order to have our initial business combination approved. Accordingly,
if we seek shareholder approval of our initial business combination, the agreement by our Sponsor and each member of our Management Team
to vote in favor of our initial business combination will increase the likelihood that we will receive the requisite shareholder approval
for such initial business combination.
In evaluating a prospective target business
for our initial business combination, our Management may rely on the availability of all of the funds from the sale of the Forward Purchase
Securities to be used as part of the consideration to the sellers in the initial business combination. If the sale of the Forward Purchase
Securities does not close, we may lack sufficient funds to consummate our initial business combination.
In connection with our initial
public offering, we entered into a Forward Purchase Agreement, which provides, among other things, for the purchase by GEPT of a number
of units designated by the Company, up to the lesser of (i) $50,000,000 of units and (ii) a number of units equal to 19.99% of the pro
forma equity outstanding at the time of the Business Combination Closing, including but not limited to, any Ordinary Shares issued in
connection with our initial public offering, the Forward Purchase Agreement or any private placement or other offering or to any seller
in the initial business combination, with each unit consisting of one Class A ordinary share and 0.425 of one warrant to purchase one
Class A ordinary share at $11.50 per share, for a purchase price of $10.00 per unit. However, if the sale of the Forward Purchase Securities
does not close, we may lack sufficient funds to consummate our initial business combination. GEPT’s obligation to purchase the Forward
Purchase Securities will be subject to the satisfaction of certain conditions, including, among others, the delivery by GEPT of a notice
to us that it will purchase the Forward Purchase Securities in whole or in part and that our initial business combination is consummated
substantially concurrently with, and immediately following, the purchase of Forward Purchase Securities.
The ability of our Public Shareholders to
redeem their shares for cash may make our financial condition unattractive to potential business combination targets, which may make it
difficult for us to enter into a business combination with a target.
We may seek to enter into
a business combination transaction agreement with a prospective target that requires as a closing condition that we have a minimum net
worth or a certain amount of cash. If too many Public Shareholders exercise their redemption rights, we would not be able to meet such
closing condition and, as a result, would not be able to proceed with the business combination. Furthermore, in no event will we redeem
our Public Shares in an amount that would cause our net tangible assets to be less than $5,000,001 (so that we do not then become subject
to the SEC’s “penny stock” rules). Consequently, if accepting all properly submitted redemption requests would cause
our net tangible assets to be less than $5,000,001 or such greater amount necessary to satisfy a closing condition as described above,
we would not proceed with such redemption and the related business combination and may instead search for an alternate business combination.
Prospective targets will be aware of these risks and, thus, may be reluctant to enter into a business combination transaction with us.
The ability of our Public Shareholders to
exercise redemption rights with respect to a large number of our shares may not allow us to complete the most desirable business combination
or optimize our capital structure.
At the time we enter into
an agreement for our initial business combination, we will not know how many shareholders may exercise their redemption rights, and therefore
will need to structure the transaction based on our expectations as to the number of shares that will be submitted for redemption. If
a large number of shares are submitted for redemption, we may need to restructure the transaction to reserve a greater portion of the
cash in the trust account or arrange for additional third-party financing. Raising additional third-party financing may involve dilutive
equity issuances or the incurrence of indebtedness at higher than desirable levels. The above considerations may limit our ability to
complete the most desirable business combination available to us or optimize our capital structure. The amount of the deferred underwriting
commissions payable to the underwriters will not be adjusted for any shares that are redeemed in connection with an initial business combination.
The per-share amount we will distribute to shareholders who properly exercise their redemption rights will not be reduced by the deferred
underwriting commission and after such redemptions, the amount held in trust will continue to reflect our obligation to pay the entire
deferred underwriting commissions.
The ability of our Public Shareholders to
exercise redemption rights with respect to a large number of our shares could increase the probability that our initial business combination
would be unsuccessful and that you would have to wait for liquidation in order to redeem your shares.
If our initial business combination
agreement requires us to use a portion of the cash in the trust account to pay the purchase price, or requires us to have a minimum amount
of cash at closing, the probability that our initial business combination would be unsuccessful is increased. If our initial business
combination is unsuccessful, you would not receive your pro rata portion of the funds in the trust account until we liquidate the trust
account. If you are in need of immediate liquidity, you could attempt to sell your shares in the open market; however, at such time our
shares may trade at a discount to the pro rata amount per share in the trust account. In either situation, you may suffer a material loss
on your investment or lose the benefit of funds expected in connection with our redemption until we liquidate or you are able to sell
your shares in the open market.
The requirement that we consummate an initial
business combination within 24 months after the closing of our initial public offering may give potential target businesses leverage over
us in negotiating a business combination and may limit the time we have in which to conduct due diligence on potential business combination
targets, in particular as we approach our business combination deadline, which could undermine our ability to complete our initial business
combination on terms that would produce value for our shareholders.
Any potential target business
with which we enter into negotiations concerning a business combination will be aware that we must consummate an initial business combination
within 24 months from the closing of our initial public offering. Consequently, such target business may obtain leverage over us in negotiating
a business combination, knowing that if we do not complete our initial business combination with that particular target business, we may
be unable to complete our initial business combination with any target business. This risk will increase as we get closer to the time
frame described above. In addition, we may have limited time to conduct due diligence and may enter into our initial business combination
on terms that we would have rejected upon a more comprehensive investigation.
Our search for a business combination, and
any target business with which we ultimately consummate a business combination, may be materially adversely affected by the recent coronavirus
(COVID-19) outbreak and the status of debt and equity markets.
Since it was first reported
to have emerged in December 2019, a novel strain of coronavirus, which causes COVID-19, has spread across the world, including the United
States. On January 30, 2020, the World Health Organization declared the outbreak of COVID-19 a “Public Health Emergency of International
Concern.” On January 31, 2020, U.S. Health and Human Services Secretary Alex M. Azar II declared a public health emergency for the
United States to aid the U.S. healthcare community in responding to COVID-19, and on March 11, 2020 the World Health Organization characterized
the outbreak as a “pandemic.” The COVID-19 outbreak has adversely affected, and other events (such as terrorist attacks, natural
disasters or a significant outbreak of other infectious diseases) could adversely affect, the economies and financial markets worldwide,
potentially including the business of any potential target business with which we intend to consummate a business combination. Furthermore,
we may be unable to complete a business combination in a timely manner or at all if concerns relating to COVID-19 continue to restrict
travel, limit the ability to have meetings with potential investors or make it impossible or impractical to negotiate and consummate a
transaction with the target company’s personnel, vendors and services providers. The extent to which COVID-19 impacts our search
for a business combination will depend on future developments, which are highly uncertain and cannot be predicted, including new information
which may emerge concerning the severity of COVID-19 and the actions to contain COVID-19 or treat its impact, among others. If the disruptions
posed by COVID-19 or other events (such as terrorist attacks, natural disasters or a significant outbreak of other infectious diseases)
continue for an extensive period of time, our ability to consummate a business combination, or the operations of a target business with
which we ultimately consummate a business combination, may be materially adversely affected.
In addition, our ability to
consummate a transaction may be dependent on the ability to raise equity and debt financing which may be impacted by COVID-19 and other
events (such as terrorist attacks, natural disasters or a significant outbreak of other infectious diseases), including as a result of
increased market volatility, decreased market liquidity in third-party financing being unavailable on terms acceptable to us or at all.
Finally, the outbreak of COVID-19 may also have the effect of heightening many of the other risks described in this “Risk Factors”
section, such as those related to the market for our securities and cross-border transactions.
We may not be able to consummate an initial
business combination within 24 months after the closing of our initial public offering, in which case we would cease all operations except
for the purpose of winding up and we would redeem our Public Shares and liquidate.
We may not be able to find
a suitable target business and consummate an initial business combination within 24 months after the closing of our initial public offering.
Our ability to complete our initial business combination may be negatively impacted by general market conditions, volatility in the capital
and debt markets and the other risks described herein. For example, the outbreak of COVID-19 continues to grow both in the U.S. and globally
and, while the extent of the impact of the outbreak on us will depend on future developments, it could limit our ability to complete our
initial business combination, including as a result of increased market volatility, decreased market liquidity and third-party financing
being unavailable on terms acceptable to us or at all. Additionally, the outbreak of COVID-19 may negatively impact businesses we may
seek to acquire. If we have not consummated an initial business combination within such applicable time period, we will: (i) cease all
operations except for the purpose of winding up; (ii) as promptly as reasonably possible but not more than ten business days thereafter,
redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including
interest earned on the funds held in the trust account and not previously released to us to pay our income taxes, if any (less up to $100,000
of interest to pay dissolution expenses), divided by the number of the then-outstanding Public Shares, which redemption will completely
extinguish Public Shareholders’ rights as shareholders (including the right to receive further liquidation distributions, if any);
and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining shareholders and our
board of directors, liquidate and dissolve, subject in the case of clauses (ii) and (iii), to our obligations under Cayman Islands law
to provide for claims of creditors and the requirements of other applicable law. Our Amended and Restated Memorandum and Articles of Association
provide that, if a resolution of the company’s shareholders is passed pursuant to the Companies Law of the Cayman Islands to commence
the voluntary liquidation of the company, we will follow the foregoing procedures with respect to the liquidation of the trust account
as promptly as reasonably possible but not more than ten business days thereafter, subject to applicable Cayman Islands law. In either
such case, our Public Shareholders may receive only $10.00 per Public Share, or less than $10.00 per Public Share, on the redemption of
their shares, and our warrants will expire worthless. See “— If third parties bring claims against us, the proceeds held in
the trust account could be reduced and the per-share redemption amount received by shareholders may be less than $10.00 per Public Share”
and other risk factors herein.
If we seek shareholder approval of our initial
business combination, our Sponsor, directors, executive officers, advisors and their affiliates may elect to purchase Public Shares or
warrants, which may influence a vote on a proposed business combination and reduce the public “float” of our Class A ordinary
shares or public warrants.
If we seek shareholder approval
of our initial business combination and we do not conduct redemptions in connection with our initial business combination pursuant to
the tender offer rules, our Sponsor, directors, executive officers, advisors or their affiliates may purchase Public Shares or warrants
in privately negotiated transactions or in the open market either prior to or following the completion of our initial business combination,
although they are under no obligation to do so. However, they have no current commitments, plans or intentions to engage in such transactions
and have not formulated any terms or conditions for any such transactions. None of the funds in the trust account will be used to purchase
Public Shares or warrants in such transactions.
In the event that our Sponsor,
directors, executive officers, advisors or their affiliates purchase shares in privately negotiated transactions from Public Shareholders
who have already elected to exercise their redemption rights, such selling shareholders would be required to revoke their prior elections
to redeem their shares. The purpose of any such transaction could be to (1) vote in favor of the business combination and thereby increase
the likelihood of obtaining shareholder approval of the business combination, (2) reduce the number of public warrants outstanding or
vote such warrants on any matters submitted to the warrant holders for approval in connection with our initial business combination or
(3) satisfy a closing condition in an agreement with a target that requires us to have a minimum net worth or a certain amount of cash
at the closing of our initial business combination, where it appears that such requirement would otherwise not be met. Any such purchases
of our securities may result in the completion of our initial business combination that may not otherwise have been possible. In addition,
if such purchases are made, the public “float” of our Class A ordinary shares or public warrants may be reduced and the number
of beneficial holders of our securities may be reduced, which may make it difficult to maintain or obtain the quotation, listing or trading
of our securities on a national securities exchange. Any such purchases will be reported pursuant to Section 13 and Section 16 of the
Exchange Act to the extent such purchasers are subject to such reporting requirements. See “Proposed Business — Permitted
Purchases and Other Transactions with Respect to Our Securities” for a description of how our Sponsor, directors, executive officers,
advisors or their affiliates will select which shareholders to purchase securities from in any private transaction.
If a shareholder fails to receive notice
of our offer to redeem our Public Shares in connection with our initial business combination, or fails to comply with the procedures for
tendering its shares, such shares may not be redeemed.
We will comply with the proxy
rules or tender offer rules, as applicable, when conducting redemptions in connection with our initial business combination. Despite our
compliance with these rules, if a shareholder fails to receive our proxy solicitation or tender offer materials, as applicable, such shareholder
may not become aware of the opportunity to redeem its shares. In addition, the proxy solicitation or tender offer materials, as applicable,
that we will furnish to holders of our Public Shares in connection with our initial business combination will describe the various procedures
that must be complied with in order to validly redeem or tender Public Shares. In the event that a shareholder fails to comply with these
procedures, its shares may not be redeemed. See “Proposed Business — Business Strategy — Effecting Our Initial Business
Combination — Tendering Share Certificates in Connection with a Tender Offer or Redemption Rights.”
The securities in which we invest the funds
held in the trust account could bear a negative rate of interest, which could reduce the value of the assets held in trust such that the
per-share redemption amount received by public shareholders may be less than $10.00 per share.
The
proceeds held in the trust account will be invested only in U.S. government treasury obligations with a maturity of 185 days or less or
in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act, which invest only in direct U.S. government
treasury obligations. While short-term U.S. government treasury obligations currently yield a positive rate of interest, they have briefly
yielded negative interest rates in recent years. Central banks in Europe and Japan pursued interest rates below zero in recent years,
and the Open Market Committee of the Federal Reserve has not ruled out the possibility that it may in the future adopt similar policies
in the United States. In the event that we are unable to complete our initial business combination or make certain amendments to our Amended
and Restated Memorandum and Articles of Association, our public shareholders are entitled to receive their pro-rata share of the proceeds
held in the trust account, plus any interest income, net of income taxes paid or payable (less, in the case we are unable to complete
our initial business combination, $100,000 of interest to pay dissolution expenses). Negative interest rates could reduce the value of
the assets held in trust such that the per-share redemption amount received by public shareholders may be less than $10.00 per share.
You will not have any rights or interests
in funds from the trust account, except under certain limited circumstances. Therefore, to liquidate your investment, you may be forced
to sell your Public Shares or warrants, potentially at a loss.
Our Public Shareholders will
be entitled to receive funds from the trust account only upon the earliest to occur of: (i) our completion of an initial business combination,
and then only in connection with those Class A ordinary shares that such shareholder properly elected to redeem, subject to the limitations
described herein, (ii) the redemption of any Public Shares properly tendered in connection with a shareholder vote to amend our Amended
and Restated Memorandum and Articles of Association (A) to modify the substance or timing of our obligation to provide holders of our
Class A ordinary shares the right to have their shares redeemed in connection with our initial business combination or to redeem 100%
of our Public Shares if we do not complete our initial business combination within 24 months from the closing of our initial public offering
or (B) with respect to any other provision relating to the rights of holders of our Class A ordinary shares, and (iii) the redemption
of our Public Shares if we have not consummated an initial business within 24 months from the closing of our initial public offering,
subject to applicable law and as further described herein. Public shareholders who redeem their Class A ordinary shares in connection
with a shareholder vote described in clause (ii) in the preceding sentence shall not be entitled to funds from the trust account upon
the subsequent completion of an initial business combination or liquidation if we have not consummated an initial business combination
within 24 months from the closing of our initial public offering, with respect to such Class A ordinary shares so redeemed. In no other
circumstances will a Public Shareholder have any right or interest of any kind in the trust account. Holders of warrants will not have
any right to the proceeds held in the trust account with respect to the warrants. Accordingly, to liquidate your investment, you may be
forced to sell your Public Shares or warrants, potentially at a loss.
Our securities could be delisted from trading
on Nasdaq, which could limit investors’ ability to make transactions in our securities and subject us to additional trading restrictions.
Our units, Class A ordinary
shares and warrants are each traded on the Nasdaq. Our units commenced public trading on January 15, 2021 under the symbol “AEACU.”
Our Class A ordinary shares and warrants began separate trading on March 8, 2021, under the symbols “AEAC” and “AEACW,”
respectively.
Although, after giving effect
to our initial public offering, we expect to meet, on a pro forma basis, the minimum initial listing standards set forth in the listing
standards of Nasdaq, we cannot assure you that our securities will be, or will continue to be, listed on Nasdaq in the future or prior
to our initial business combination.
In order to continue listing
our securities on Nasdaq prior to our initial business combination, we must maintain certain financial, distribution and share price levels.
Generally, we must maintain a minimum market capitalization (generally $2,500,000) and a minimum number of holders of our securities (generally
300 public holders).
Additionally, our units will
not be traded after completion of our initial business combination and, in connection with our initial business combination, we will be
required to demonstrate compliance with the initial listing requirements of Nasdaq, which are more rigorous than the continued listing
requirements of Nasdaq, in order to continue to maintain the listing of our securities on Nasdaq.
For instance, in order for
our shares to be listed upon the consummation of our business combination, among other things, at such time our share price would generally
be required to be at least $4.00 per share and we would be required to have at least 300 round lot shareholders. We cannot assure you
that we will be able to meet those listing requirements at that time.
If Nasdaq delists any of our
securities from trading on its exchange and we are not able to list our securities on another national securities exchange, we expect
such securities could be quoted on an over-the-counter market. If this were to occur, we could face significant material adverse consequences,
including:
| ● | a limited availability of market quotations for our securities; |
| ● | reduced liquidity for our securities; |
| ● | a determination that our Class A ordinary shares are a “penny stock” which will require brokers
trading in our Class A ordinary shares to adhere to more stringent rules and possibly result in a reduced level of trading activity in
the secondary trading market for our securities; |
| ● | a limited amount of news and analyst coverage; and |
| ● | a decreased ability to issue additional securities or obtain additional financing in the future. |
The National Securities Markets
Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the sale of certain securities, which
are referred to as “covered securities.” Because our units, Class A ordinary shares and warrants are listed on Nasdaq, our
units, Class A ordinary shares and warrants qualify as covered securities under the statute. Although the states are preempted from regulating
the sale of covered securities, the federal statute does allow the states to investigate companies if there is a suspicion of fraud, and,
if there is a finding of fraudulent activity, then the states can regulate or bar the sale of covered securities in a particular case.
While we are not aware of a state having used these powers to prohibit or restrict the sale of securities issued by blank check companies,
other than the State of Idaho, certain state securities regulators view blank check companies unfavorably and might use these powers,
or threaten to use these powers, to hinder the sale of securities of blank check companies in their states. Further, if we were no longer
listed on Nasdaq, our securities would not qualify as covered securities under the statute and we would be subject to regulation in each
state in which we offer our securities.
You will not be entitled to protections normally
afforded to investors of many other blank check companies.
Since the net proceeds of
our initial public offering and the sale of the Private Placement Warrants are intended to be used to complete an initial business combination
with a target business that has not been selected, we may be deemed to be a “blank check” company under the United States
securities laws. However, because we have net tangible assets in excess of $5,000,000 and filed a Current Report on Form 8-K, including
an audited balance sheet demonstrating this fact, we are exempt from rules promulgated by the SEC to protect investors in blank check
companies, such as Rule 419. Accordingly, investors will not be afforded the benefits or protections of those rules. Among other things,
this means our units will be immediately tradable and we will have a longer period of time to complete our initial business combination
than do companies subject to Rule 419. Moreover, if our initial public offering were subject to Rule 419, that rule would prohibit the
release of any interest earned on funds held in the trust account to us unless and until the funds in the trust account were released
to us in connection with our completion of an initial business combination.
If we seek shareholder approval of our initial
business combination and we do not conduct redemptions pursuant to the tender offer rules, and if you or a “group” of shareholders
are deemed to hold in excess of 15% of our Class A ordinary shares, you will lose the ability to redeem all such shares in excess of 15%
of our Class A ordinary shares.
If we seek shareholder approval
of our initial business combination and we do not conduct redemptions in connection with our initial business combination pursuant to
the tender offer rules, our Amended and Restated Memorandum and Articles of Association provide that a Public Shareholder, together with
any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group” (as
defined under Section 13 of the Exchange Act), will be restricted from redeeming its shares with respect to more than an aggregate of
15% of the shares sold in our initial public offering, which we refer to as the “Excess Shares,” without our prior consent.
However, we would not be restricting our shareholders’ ability to vote all of their shares (including Excess Shares) for or against
our initial business combination. Your inability to redeem the Excess Shares will reduce your influence over our ability to complete our
initial business combination and you could suffer a material loss on your investment in us if you sell Excess Shares in open market transactions.
Additionally, you will not receive redemption distributions with respect to the Excess Shares if we complete our initial business combination.
And as a result, you will continue to hold that number of shares exceeding 15% and, in order to dispose of such shares, would be required
to sell your shares in open market transactions, potentially at a loss.
Because of our limited resources and the
significant competition for business combination opportunities, it may be more difficult for us to complete our initial business combination.
If we have not consummated our initial business combination within the required time period, our Public Shareholders may receive only
approximately $10.00 per Public Share, or less in certain circumstances, on the liquidation of our trust account and our warrants will
expire worthless.
We expect to encounter intense
competition from other entities having a business objective similar to ours, including private investors (which may be individuals or
investment partnerships), other blank check companies and other entities, domestic and international, competing for the types of businesses
we intend to acquire. Many of these individuals and entities are well established and have extensive experience in identifying and effecting,
directly or indirectly, acquisitions of companies operating in or providing services to various industries. Many of these competitors
possess greater technical, human and other resources or more local industry knowledge than we do and our financial resources will be relatively
limited when contrasted with those of many of these competitors. While we believe there are numerous target businesses we could potentially
acquire with the net proceeds of our initial public offering and the sale of the Private Placement Warrants, our ability to compete with
respect to the acquisition of certain target businesses that are sizable will be limited by our available financial resources. This inherent
competitive limitation gives others an advantage in pursuing the acquisition of certain target businesses. Furthermore, we are obligated
to offer holders of our Public Shares the right to redeem their shares for cash at the time of our initial business combination in conjunction
with a shareholder vote or via a tender offer. Target companies will be aware that this may reduce the resources available to us for our
initial business combination. Any of these obligations may place us at a competitive disadvantage in successfully negotiating a business
combination. If we have not consummated our initial business combination within the required time period, our Public Shareholders may
receive only approximately $10.00 per Public Share, or less in certain circumstances, on the liquidation of our trust account and our
warrants will expire worthless. See “— If third parties bring claims against us, the proceeds held in the trust account could
be reduced and the per-share redemption amount received by shareholders may be less than $10.00 per Public Share” and other risk
factors herein.
If the net proceeds of our initial public
offering and the sale of the Private Placement Warrants not being held in the trust account are insufficient to allow us to operate for
the 24 months following the closing of our initial public offering, it could limit the amount available to fund our search for a target
business or businesses and our ability to complete our initial business combination, and we will depend on loans from our Sponsor, its
affiliates or members of our Management Team to fund our search and to complete our initial business combination.
Of the net proceeds of our
initial public offering and the sale of the Private Placement Warrants, only approximately $1,000,000 will be available to us initially
outside the trust account to fund our working capital requirements. We believe that the funds available to us outside of the trust account,
together with funds available from loans from our Sponsor, its affiliates or members of our Management Team will be sufficient to allow
us to operate for at least the 24 months following the closing of our initial public offering; however, we cannot assure you that our
estimate is accurate, and our Sponsor, its affiliates or members of our Management Team are under no obligation to advance funds to us
in such circumstances. Of the funds available to us, we expect to use a portion of the funds available to us to pay fees to consultants
to assist us with our search for a target business. We could also use a portion of the funds as a down payment or to fund a “no-shop”
provision (a provision in letters of intent designed to keep target businesses from “shopping” around for transactions with
other companies or investors on terms more favorable to such target businesses) with respect to a particular proposed business combination,
although we do not have any current intention to do so. If we entered into a letter of intent where we paid for the right to receive exclusivity
from a target business and were subsequently required to forfeit such funds (whether as a result of our breach or otherwise), we might
not have sufficient funds to continue searching for, or conduct due diligence with respect to, a target business.
In the event that our offering
expenses exceed our estimate of $1,000,000, we may fund such excess with funds not to be held in the trust account. In such case, unless
funded by the proceeds of loans available from our Sponsor, its affiliates or members of our Management Team the amount of funds we intend
to be held outside the trust account would decrease by a corresponding amount. Conversely, in the event that the offering expenses are
less than our estimate of $1,000,000, the amount of funds we intend to be held outside the trust account would increase by a corresponding
amount. The amount held in the trust account will not be impacted as a result of such increase or decrease. If we are required to seek
additional capital, we would need to borrow funds from our Sponsor, its affiliates, members of our Management Team or other third parties
to operate or may be forced to liquidate. Neither our Sponsor, members of our Management Team nor their affiliates is under any obligation
to us in such circumstances. Any such advances may be repaid only from funds held outside the trust account or from funds released to
us upon completion of our initial business combination. Up to $1,500,000 of such loans may be convertible into warrants of the post-business
combination entity at a price of $1.00 per warrant at the option of the lender. The warrants would be identical to the Private Placement
Warrants. Prior to the completion of our initial business combination, we do not expect to seek loans from parties other than our Sponsor,
its affiliates or members of our Management Team as we do not believe third parties will be willing to loan such funds and provide a waiver
against any and all rights to seek access to funds in our trust account. If we have not consummated our initial business combination within
the required time period because we do not have sufficient funds available to us, we will be forced to cease operations and liquidate
the trust account. Consequently, our Public Shareholders may only receive an estimated $10.00 per Public Share, or possibly less, on our
redemption of our Public Shares, and our warrants will expire worthless. See “— If third parties bring claims against us,
the proceeds held in the trust account could be reduced and the per-share redemption amount received by shareholders may be less than
$10.00 per Public Share” and other risk factors herein.
Subsequent to our completion of our initial
business combination, we may be required to take write-downs or write-offs, restructuring and impairment or other charges that could have
a significant negative effect on our financial condition, results of operations and the price of our securities, which could cause you
to lose some or all of your investment.
Even if we conduct extensive
due diligence on a target business with which we combine, we cannot assure you that this diligence will identify all material issues with
a particular target business, that it would be possible to uncover all material issues through a customary amount of due diligence, or
that factors outside of the target business and outside of our control will not later arise. As a result of these factors, we may be forced
to later write-down or write-off assets, restructure our operations, or incur impairment or other charges that could result in our reporting
losses. Even if our due diligence successfully identifies certain risks, unexpected risks may arise and previously known risks may materialize
in a manner not consistent with our preliminary risk analysis. Even though these charges may be non-cash items and not have an immediate
impact on our liquidity, the fact that we report charges of this nature could contribute to negative market perceptions about us or our
securities. In addition, charges of this nature may cause us to violate net worth or other covenants to which we may be subject as a result
of assuming pre-existing debt held by a target business or by virtue of our obtaining post-combination debt financing. Accordingly, any
holders who choose to retain their securities following the business combination could suffer a reduction in the value of their securities.
Such holders are unlikely to have a remedy for such reduction in value.
If third parties bring claims against us,
the proceeds held in the trust account could be reduced and the per-share redemption amount received by shareholders may be less than
$10.00 per share.
Our placing of funds in the
trust account may not protect those funds from third-party claims against us. Although we will seek to have all vendors, service providers
(other than our independent registered public accounting firm), prospective target businesses and other entities with which we do business
execute agreements with us waiving any right, title, interest or claim of any kind in or to any monies held in the trust account for the
benefit of our Public Shareholders, such parties may not execute such agreements, or even if they execute such agreements, they may not
be prevented from bringing claims against the trust account, including, but not limited to, fraudulent inducement, breach of fiduciary
responsibility or other similar claims, as well as claims challenging the enforceability of the waiver, in each case in order to gain
advantage with respect to a claim against our assets, including the funds held in the trust account. If any third-party refuses to execute
an agreement waiving such claims to the monies held in the trust account, our Management will perform an analysis of the alternatives
available to it and will only enter into an agreement with a third-party that has not executed a waiver if management believes that such
third-party’s engagement would be significantly more beneficial to us than any alternative.
Examples of possible instances
where we may engage a third-party that refuses to execute a waiver include the engagement of a third-party consultant whose particular
expertise or skills are believed by management to be significantly superior to those of other consultants that would agree to execute
a waiver or in cases where management is unable to find a service provider willing to execute a waiver. In addition, there is no guarantee
that such entities will agree to waive any claims they may have in the future as a result of, or arising out of, any negotiations, contracts
or agreements with us and will not seek recourse against the trust account for any reason. Upon redemption of our Public Shares, if we
have not consummated an initial business combination within 24 months from the closing of our initial public offering, or upon the exercise
of a redemption right in connection with our initial business combination, we will be required to provide for payment of claims of creditors
that were not waived that may be brought against us within the ten years following redemption. Accordingly, the per-share redemption amount
received by Public Shareholders could be less than the $10.00 per Public Share initially held in the trust account, due to claims of such
creditors. Pursuant to a letter agreement, our Sponsor has agreed that it will be liable to us if and to the extent any claims by a third-party
(other than our independent registered public accounting firm) for services rendered or products sold to us, or a prospective target business
with which we have discussed entering into a transaction agreement, reduce the amounts in the trust account to below the lesser of (i)
$10.00 per Public Share and (ii) the actual amount per Public Share held in the trust account as of the date of the liquidation of the
trust account if less than $10.00 per Public Share due to reductions in the value of the trust assets, in each case net of the interest
that may be withdrawn to pay our tax obligations, provided that such liability will not apply to any claims by a third-party or
prospective target business that executed a waiver of any and all rights to seek access to the trust account nor will it apply to any
claims under our indemnity of the underwriters of our initial public offering against certain liabilities, including liabilities under
the Securities Act. Moreover, in the event that an executed waiver is deemed to be unenforceable against a third-party, our Sponsor will
not be responsible to the extent of any liability for such third-party claims.
However, we have not asked
our Sponsor to reserve for such indemnification obligations, nor have we independently verified whether our Sponsor has sufficient funds
to satisfy its indemnity obligations and we believe that our Sponsor’s only assets are securities of our company. Therefore, we
cannot assure you that our Sponsor would be able to satisfy those obligations. As a result, if any such claims were successfully made
against the trust account, the funds available for our initial business combination and redemptions could be reduced to less than $10.00
per Public Share. In such event, we may not be able to complete our initial business combination, and you would receive such lesser amount
per share in connection with any redemption of your Public Shares. None of our officers or directors will indemnify us for claims by third
parties including, without limitation, claims by vendors and prospective target businesses.
Our directors may decide not to enforce the
indemnification obligations of our sponsor, resulting in a reduction in the amount of funds in the trust account available for distribution
to our Public Shareholders.
In the event that the proceeds
in the trust account are reduced below the lesser of (i) $10.00 per Public Share and (ii) the actual amount per Public Share held in the
trust account as of the date of the liquidation of the trust account if less than $10.00 per Public Share due to reductions in the value
of the trust assets, in each case net of the interest that may be withdrawn to pay our tax obligations, and our Sponsor asserts that it
is unable to satisfy its obligations or that it has no indemnification obligations related to a particular claim, our independent directors
would determine whether to take legal action against our Sponsor to enforce its indemnification obligations. While we currently expect
that our independent directors would take legal action on our behalf against our Sponsor to enforce its indemnification obligations to
us, it is possible that our independent directors in exercising their business judgment and subject to their fiduciary duties may choose
not to do so in any particular instance. If our independent directors choose not to enforce these indemnification obligations, the amount
of funds in the trust account available for distribution to our Public Shareholders may be reduced below $10.00 per Public Share.
We may not have sufficient funds to satisfy
indemnification claims of our directors and executive officers.
We have agreed to indemnify
our officers and directors to the fullest extent permitted by law. However, our officers and directors have agreed to waive any right,
title, interest or claim of any kind in or to any monies in the trust account and to not seek recourse against the trust account for any
reason whatsoever (except to the extent they are entitled to funds from the trust account due to their ownership of Public Shares). Accordingly,
any indemnification provided will be able to be satisfied by us only if (i) we have sufficient funds outside of the trust account or (ii)
we consummate an initial business combination. Our obligation to indemnify our officers and directors may discourage shareholders from
bringing a lawsuit against our officers or directors for breach of their fiduciary duty. These provisions also may have the effect of
reducing the likelihood of derivative litigation against our officers and directors, even though such an action, if successful, might
otherwise benefit us and our shareholders. Furthermore, a shareholder’s investment may be adversely affected to the extent we pay
the costs of settlement and damage awards against our officers and directors pursuant to these indemnification provisions.
If, after we distribute the proceeds in the
trust account to our Public Shareholders, we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that
is not dismissed, a bankruptcy court may seek to recover such proceeds, and the members of our board of directors may be viewed as having
breached their fiduciary duties to our creditors, thereby exposing the members of our board of directors and us to claims of punitive
damages.
If, after we distribute the
proceeds in the trust account to our Public Shareholders, we file a bankruptcy petition or an involuntary bankruptcy petition is filed
against us that is not dismissed, any distributions received by shareholders could be viewed under applicable debtor/creditor and/or bankruptcy
laws as either a “preferential transfer” or a “fraudulent conveyance.” As a result, a bankruptcy court could seek
to recover some or all amounts received by our shareholders. In addition, our board of directors may be viewed as having breached its
fiduciary duty to our creditors and/or having acted in bad faith, thereby exposing itself and us to claims of punitive damages, by paying
Public Shareholders from the trust account prior to addressing the claims of creditors.
If, before distributing the proceeds in the
trust account to our Public Shareholders, we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that
is not dismissed, the claims of creditors in such proceeding may have priority over the claims of our shareholders and the per-share amount
that would otherwise be received by our shareholders in connection with our liquidation may be reduced.
If, before distributing the
proceeds in the trust account to our Public Shareholders, we file a bankruptcy petition or an involuntary bankruptcy petition is filed
against us that is not dismissed, the proceeds held in the trust account could be subject to applicable bankruptcy law, and may be included
in our bankruptcy estate and subject to the claims of third parties with priority over the claims of our shareholders. To the extent any
bankruptcy claims deplete the trust account, the per-share amount that would otherwise be received by our shareholders in connection with
our liquidation may be reduced.
If we are deemed to be an investment company
under the Investment Company Act, we may be required to institute burdensome compliance requirements and our activities may be restricted,
which may make it difficult for us to complete our initial business combination.
If we are deemed to be an
investment company under the Investment Company Act, our activities may be restricted, including:
| ● | restrictions on the nature of our investments; and |
| ● | restrictions on the issuance of securities, |
each of which may make it
difficult for us to complete our initial business combination. In addition, we may have imposed upon us burdensome requirements, including:
| ● | registration as an investment company with the SEC; |
| ● | adoption of a specific form of corporate structure; and |
| ● | reporting, record keeping, voting, proxy and disclosure requirements and other rules and regulations. |
In order not to be regulated
as an investment company under the Investment Company Act, unless we can qualify for an exclusion, we must ensure that we are engaged
primarily in a business other than investing, reinvesting or trading of securities and that our activities do not include investing, reinvesting,
owning, holding or trading “investment securities” constituting more than 40% of our assets (exclusive of U.S. government
securities and cash items) on an unconsolidated basis. Our business will be to identify and complete a business combination and thereafter
to operate the post-business combination business or assets for the long term. We do not plan to buy businesses or assets with a view
to resale or profit from their resale. We do not plan to buy unrelated businesses or assets or to be a passive investor.
We do not believe that our
anticipated principal activities will subject us to the Investment Company Act. To this end, the proceeds held in the trust account may
only be invested in United States “government securities” within the meaning of Section 2(a)(16) of the Investment Company
Act having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 promulgated under the Investment
Company Act which invest only in direct U.S. government treasury obligations. Pursuant to the trust agreement, the trustee is not permitted
to invest in other securities or assets. By restricting the investment of the proceeds to these instruments, and by having a business
plan targeted at acquiring and growing businesses for the long term (rather than on buying and selling businesses in the manner of a merchant
bank or private equity fund), we intend to avoid being deemed an “investment company” within the meaning of the Investment
Company Act. Our initial public offering is not intended for persons who are seeking a return on investments in government securities
or investment securities. The trust account is intended as a holding place for funds pending the earliest to occur of either: (i) the
completion of our initial business combination; (ii) the redemption of any Public Shares properly tendered in connection with a shareholder
vote to amend our Amended and Restated Memorandum and Articles of Association (A) to modify the substance or timing of our obligation
to provide holders of our Class A ordinary shares the right to have their shares redeemed in connection with our initial business combination
or to redeem 100% of our Public Shares if we do not complete our initial business combination within 24 months from the closing of our
initial public offering or (B) with respect to any other provision relating to the rights of holders of our Class A ordinary shares; or
(iii) absent our completing an initial business combination within 24 months from the closing of our initial public offering, our return
of the funds held in the trust account to our Public Shareholders as part of our redemption of the Public Shares. If we do not invest
the proceeds as discussed above, we may be deemed to be subject to the Investment Company Act. If we were deemed to be subject to the
Investment Company Act, compliance with these additional regulatory burdens would require additional expenses for which we have not allotted
funds and may hinder our ability to complete a business combination. If we have not consummated our initial business combination within
the required time period, our Public Shareholders may receive only approximately $10.00 per Public Share, or less in certain circumstances,
on the liquidation of our trust account and our warrants will expire worthless.
Changes in laws or regulations, or a failure
to comply with any laws and regulations, may adversely affect our business, including our ability to negotiate and complete our initial
business combination, and results of operations.
We are subject to laws and
regulations enacted by national, regional and local governments. In particular, we will be required to comply with certain SEC and other
legal requirements. Compliance with, and monitoring of, applicable laws and regulations may be difficult, time consuming and costly. Those
laws and regulations and their interpretation and application may also change from time to time and those changes could have a material
adverse effect on our business, investments and results of operations. In addition, a failure to comply with applicable laws or regulations,
as interpreted and applied, could have a material adverse effect on our business, including our ability to negotiate and complete our
initial business combination, and results of operations.
If we are unable to consummate an initial
business combination within 24 months from the closing of our initial public offering, our Public Shareholders may be forced to wait beyond
such 24 months before redemption from our trust account.
If we have not consummated
an initial business combination within 24 months from the closing of our initial public offering, the proceeds then on deposit in the
trust account, including interest earned on the funds held in the trust account and not previously released to us to pay our income taxes,
if any (less up to $100,000 of interest to pay dissolution expenses), will be used to fund the redemption of our Public Shares, as further
described herein. Any redemption of Public Shareholders from the trust account will be effected automatically by function of our Amended
and Restated Memorandum and Articles of Association prior to any voluntary winding up. If we are required to wind up, liquidate the trust
account and distribute such amount therein, pro rata, to our Public Shareholders, as part of any liquidation process, such winding up,
liquidation and distribution must comply with the applicable provisions of the Companies Law. In that case, investors may be forced to
wait beyond 24 months from the closing of our initial public offering before the redemption proceeds of our trust account become available
to them, and they receive the return of their pro rata portion of the proceeds from our trust account. We have no obligation to return
funds to investors prior to the date of their redemption or any liquidation unless, prior thereto, we consummate our initial business
combination or amend certain provisions of our Amended and Restated Memorandum and Articles of Association, and only then in cases where
investors have sought to redeem their Class A ordinary shares. Only upon their redemption or any liquidation will Public Shareholders
be entitled to distributions if we do not complete our initial business combination and do not amend certain provisions of our Amended
and Restated Memorandum and Articles of Association. Our Amended and Restated Memorandum and Articles of Association provide that, if
a resolution of the company’s shareholders is passed pursuant to the Companies Law of the Cayman Islands to commence the voluntary
liquidation of the company, we will follow the foregoing procedures with respect to the liquidation of the trust account as promptly as
reasonably possible but not more than ten business days thereafter, subject to applicable Cayman Islands law.
Our shareholders may be held liable for claims
by third parties against us to the extent of distributions received by them upon redemption of their shares.
If we are forced to enter
into an insolvent liquidation, any distributions received by shareholders could be viewed as an unlawful payment if it was proved that
immediately following the date on which the distribution was made, we were unable to pay our debts as they fall due in the ordinary course
of business. As a result, a liquidator could seek to recover some or all amounts received by our shareholders. Furthermore, our directors
may be viewed as having breached their fiduciary duties to us or our creditors and/or may have acted in bad faith, thereby exposing themselves
and our company to claims, by paying Public Shareholders from the trust account prior to addressing the claims of creditors. We cannot
assure you that claims will not be brought against us for these reasons. We and our directors and officers who knowingly and willfully
authorized or permitted any distribution to be paid out of our share premium account while we were unable to pay our debts as they fall
due in the ordinary course of business would be guilty of an offence and may be liable for a fine of approximately $18,000.00 and imprisonment
for five years in the Cayman Islands.
We may not hold an annual meeting of shareholders
until after the consummation of our initial business combination.
In accordance with the corporate
governance requirements of Nasdaq, we are not required to hold an annual meeting until one year after our first fiscal year end following
our listing on Nasdaq. There is no requirement under the Companies Law for us to hold annual or general meetings to elect directors. Until
we hold an annual meeting of shareholders, Public Shareholders may not be afforded the opportunity to elect directors and to discuss company
affairs with management. Our board of directors is divided into three classes with only one class of directors being elected in each year
and each class (except for those directors appointed prior to our first annual meeting of shareholders) serving a three-year term.
Holders of Class A ordinary shares will not
be entitled to vote on any election of directors we hold prior to our initial business combination.
Prior to our initial business
combination, only holders of our Founder Shares will have the right to vote on the election of directors. Holders of our Public Shares
will not be entitled to vote on the election of directors during such time; provided, however, that if all of the Founder Shares are converted
prior to the date of our initial business combination, the holders of our Class A ordinary shares will have the right to vote on the election
of directors. In addition, prior to our initial business combination, holders of a majority of our Founder Shares may remove a member
of the board of directors for any reason. Accordingly, you may not have any say in the management of our company prior to the consummation
of an initial business combination.
We are not registering the Class A ordinary
shares issuable upon exercise of the warrants under the Securities Act or any state securities laws at this time, and such registration
may not be in place when an investor desires to exercise warrants, thus precluding such investor from being able to exercise its warrants
except on a cashless basis and potentially causing such warrants to expire worthless.
We are not registering the
Class A ordinary shares issuable upon exercise of the warrants under the Securities Act or any state securities laws at this time. However,
under the terms of the warrant agreement, we have agreed that, as soon as practicable, but in no event later than 20 business days after
the closing of our initial business combination, we will use our commercially reasonable efforts to file with the SEC a registration statement
covering the issuance of such shares, and we will use our commercially reasonable efforts to cause the same to become effective within
60 business days after the closing of our initial business combination and to maintain the effectiveness of such registration statement
and a current prospectus relating to those Class A ordinary shares until the warrants expire or are redeemed. We cannot assure you that
we will be able to do so if, for example, any facts or events arise which represent a fundamental change in the information set forth
in the registration statement or prospectus, the financial statements contained or incorporated by reference therein are not current,
complete or correct or the SEC issues a stop order. If the shares issuable upon exercise of the warrants are not registered under the
Securities Act in accordance with the above requirements, we will be required to permit holders to exercise their warrants on a cashless
basis, in which case, the number of Class A ordinary shares that you will receive upon cashless exercise will be based on a formula subject
to a maximum amount of shares equal to 0.365 Class A ordinary shares per warrant (subject to adjustment). However, no warrant will be
exercisable for cash or on a cashless basis, and we will not be obligated to issue any shares to holders seeking to exercise their warrants,
unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of the exercising
holder, or an exemption from registration is available. Notwithstanding the above, if our Class A ordinary shares are at the time of any
exercise of a warrant not listed on a national securities exchange such that they satisfy the definition of a “covered security”
under Section 18(b)(1) of the Securities Act, we may, at our option, require holders of public warrants who exercise their warrants to
do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event we so elect, we will
not be required to file or maintain in effect a registration statement, but we will use our commercially reasonable efforts to register
or qualify the shares under applicable blue sky laws to the extent an exemption is not available. Exercising the warrants on a cashless
basis could have the effect of reducing the potential “upside” of the holder’s investment in our company because the
warrant holder will hold a smaller number of Class A ordinary shares upon a cashless exercise of the warrants they hold. In no event will
we be required to net cash settle any warrant, or issue securities or other compensation in exchange for the warrants in the event that
we are unable to register or qualify the shares underlying the warrants under applicable state securities laws and no exemption is available.
If the issuance of the shares upon exercise of the warrants is not so registered or qualified or exempt from registration or qualification,
the holder of such warrant shall not be entitled to exercise such warrant and such warrant may have no value and expire worthless. In
such event, holders who acquired their warrants as part of a purchase of units will have paid the full unit purchase price solely for
the Class A ordinary shares included in the units. There may be a circumstance where an exemption from registration exists for holders
of our Private Placement Warrants to exercise their warrants while a corresponding exemption does not exist for holders of the public
warrants included as part of units sold in our initial public offering. In such an instance, our Sponsor and its permitted transferees
(which may include our directors and executive officers) would be able to exercise their warrants and sell the Ordinary Shares underlying
their warrants while holders of our public warrants would not be able to exercise their warrants and sell the underlying ordinary shares.
If and when the warrants become redeemable by us, we may exercise our redemption right even if we are unable to register or qualify the
underlying Class A ordinary shares for sale under all applicable state securities laws. As a result, we may redeem the warrants as set
forth above even if the holders are otherwise unable to exercise their warrants.
The warrants may become exercisable and redeemable
for a security other than the Class A ordinary shares, and you will not have any information regarding such other security at this time.
In certain situations, including
if we are not the surviving entity in our initial business combination, the warrants may become exercisable for a security other than
the Class A ordinary shares. As a result, if the surviving company redeems your warrants for securities pursuant to the warrant agreement,
you may receive a security in a company of which you do not have information at this time. Pursuant to the warrant agreement, the surviving
company will be required to use commercially reasonable efforts to register the issuance of the security underlying the warrants within
twenty business days of the closing of an initial business combination.
Our warrants and units
committed to be issued in connection with the forward purchase agreement are accounted for as a derivative liability and are recorded
at fair value upon issuance with changes in fair value each period reported in earnings, which may have an adverse effect on the market
price of our Class A ordinary shares or may make it more difficult for us to consummate an initial Business Combination.
We
account for our warrants and the units committed to be issued in connection with the forward purchase agreement as a derivative liability
and will record them at fair value upon issuance with any changes in fair value each period reported in earnings as determined by us based
upon a valuation report obtained from an independent third party valuation firm. The impact of changes in fair value on earnings may have
an adverse effect on the market price of our Class A ordinary shares. In addition, potential targets may seek a SPAC that does not have
warrants or units that are accounted for as a derivative liability, which may make it more difficult for us to consummate an initial Business
Combination with a target business.
Our warrants are accounted
for as a derivative liability and are recorded at fair value upon issuance with changes in fair value each period reported in earnings,
which may have an adverse effect on the market price of our Class A ordinary shares or may make it more difficult for us to consummate
an initial Business Combination.
We
account for our warrants as a derivative liability and will record them at fair value upon issuance with any changes in fair value each
period reported in earnings as determined by us based upon a valuation report obtained from an independent third party valuation firm.
The impact of changes in fair value on earnings may have an adverse effect on the market price of our Class A ordinary shares. In addition,
potential targets may seek a SPAC that does not have warrants that are accounted for as a derivative liability, which may make it more
difficult for us to consummate an initial Business Combination with a target business.
The grant of registration rights to our Sponsor
may make it more difficult to complete our initial business combination, and the future exercise of such rights may adversely affect the
market price of our Class A ordinary shares.
Our Sponsor and its permitted
transferees can demand that we register the resale of the Class A ordinary shares into which Founder Shares are convertible, the Private
Placement Warrants and the Class A ordinary shares issuable upon exercise of the Private Placement Warrants, and warrants that may be
issued upon conversion of working capital loans and the Class A ordinary shares issuable upon conversion of such warrants. The registration
rights will be exercisable with respect to the Founder Shares and the Private Placement Warrants and the Class A ordinary shares issuable
upon exercise of such Private Placement Warrants. Pursuant to the Forward Purchase Agreement, we have agreed to use reasonable best efforts
(i) to file within 30 days after the closing of the initial business combination a registration statement with the SEC for a secondary
offering of the Forward Purchase Shares and the Forward Purchase Warrants (and underlying Class A ordinary shares), (ii) to cause such
registration statement to be declared effective promptly thereafter but in no event later than sixty (60) days after the initial filing,
(iii) to maintain the effectiveness of such registration statement until the earliest of (A) the date on which our Sponsor or its assignees
cease to hold the securities covered thereby, and (B) the date all of the securities covered thereby can be sold publicly without restriction
or limitation under Rule 144 under the Securities Act and (iv) after such registration statement is declared effective, cause us to conduct
firm commitment underwritten offerings, subject to certain limitations. In addition, the Forward Purchase Agreement provides for certain
“piggy-back” registration rights to the holders of Forward Purchase Securities to include their securities in other registration
statements filed by us. We will bear the cost of registering these securities. The registration and availability of such a significant
number of securities for trading in the public market may have an adverse effect on the market price of our Class A ordinary shares. In
addition, the existence of the registration rights may make our initial business combination more costly or difficult to conclude. This
is because the shareholders of the target business may increase the equity stake they seek in the combined entity or ask for more cash
consideration to offset the negative impact on the market price of our securities that is expected when the securities owned by our Sponsor
or its permitted transferees are registered for resale.
Because we are neither limited to evaluating
a target business in a particular industry sector nor have we selected any specific target businesses with which to pursue our initial
business combination, you will be unable to ascertain the merits or risks of any particular target business’s operations.
We may pursue business combination
opportunities in any sector, except that we will not, under our Amended and Restated Memorandum and Articles of Association, be permitted
to effectuate our initial business combination solely with another blank check company or similar company with nominal operations. Because
we have not yet selected or approached any specific target business with respect to a business combination, there is no basis to evaluate
the possible merits or risks of any particular target business’s operations, results of operations, cash flows, liquidity, financial
condition or prospects. To the extent we complete our initial business combination, we may be affected by numerous risks inherent in the
business operations with which we combine. For example, if we combine with a financially unstable business or an entity lacking an established
record of sales or earnings, we may be affected by the risks inherent in the business and operations of a financially unstable or a development
stage entity. Although our officers and directors will endeavor to evaluate the risks inherent in a particular target business, we cannot
assure you that we will properly ascertain or assess all of the significant risk factors or that we will have adequate time to complete
due diligence. Furthermore, some of these risks may be outside of our control and leave us with no ability to control or reduce the chances
that those risks will adversely impact a target business. We also cannot assure you that an investment in our units will ultimately prove
to be more favorable to investors than a direct investment, if such opportunity were available, in a business combination target. Accordingly,
any holders who choose to retain their securities following the business combination could suffer a reduction in the value of their securities.
Such holders are unlikely to have a remedy for such reduction in value.
We may seek acquisition opportunities in
industries or sectors which may or may not be outside of our management’s area of expertise.
We will consider a business
combination outside of our management’s area of expertise if a business combination target is presented to us and we determine that
such candidate offers an attractive acquisition opportunity for our company. Although our Management will endeavor to evaluate the risks
inherent in any particular business combination target, we cannot assure you that we will adequately ascertain or assess all of the significant
risk factors. We also cannot assure you that an investment in our units will not ultimately prove to be less favorable to investors in
our initial public offering than a direct investment, if an opportunity were available, in a business combination target. In the event
we elect to pursue an acquisition outside of the areas of our management’s expertise, our management’s expertise may not be
directly applicable to its evaluation or operation, and the information contained in this Report regarding the areas of our management’s
expertise would not be relevant to an understanding of the business that we elect to acquire. As a result, our Management may not be able
to adequately ascertain or assess all of the significant risk factors. Accordingly, any holders who choose to retain their securities
following the business combination could suffer a reduction in the value of their securities. Such holders are unlikely to have a remedy
for such reduction in value.
Although we have identified general criteria
and guidelines that we believe are important in evaluating prospective target businesses, we may enter into our initial business combination
with a target that does not meet such criteria and guidelines, and as a result, the target business with which we enter into our initial
business combination may not have attributes entirely consistent with our general criteria and guidelines.
Although we have identified
general criteria and guidelines for evaluating prospective target businesses, it is possible that a target business with which we enter
into our initial business combination will not have all of these positive attributes. If we complete our initial business combination
with a target that does not meet some or all of these guidelines, such combination may not be as successful as a combination with a business
that does meet all of our general criteria and guidelines. In addition, if we announce a prospective business combination with a target
that does not meet our general criteria and guidelines, a greater number of shareholders may exercise their redemption rights, which may
make it difficult for us to meet any closing condition with a target business that requires us to have a minimum net worth or a certain
amount of cash. In addition, if shareholder approval of the transaction is required by applicable law or stock exchange listing requirements,
or we decide to obtain shareholder approval for business or other reasons, it may be more difficult for us to attain shareholder approval
of our initial business combination if the target business does not meet our general criteria and guidelines. If we have not consummated
our initial business combination within the required time period, our Public Shareholders may receive only approximately $10.00 per Public
Share, or less in certain circumstances, on the liquidation of our trust account and our warrants will expire worthless.
We are not required to obtain an opinion
from an independent accounting or investment banking firm, and consequently, you may have no assurance from an independent source that
the price we are paying for the business is fair to our shareholders from a financial point of view.
Unless we complete our initial
business combination with an affiliated entity, we are not required to obtain an opinion from an independent investment banking firm or
another independent entity that commonly renders valuation opinions that the price we are paying is fair to our shareholders from a financial
point of view. If no opinion is obtained, our shareholders will be relying on the judgment of our board of directors, who will determine
fair market value based on standards generally accepted by the financial community. Such standards used will be disclosed in our proxy
solicitation or tender offer materials, as applicable, related to our initial business combination.
We may issue additional Class A ordinary
shares or preference shares to complete our initial business combination or under an employee incentive plan after completion of our initial
business combination. We may also issue Class A ordinary shares upon the conversion of the Founder Shares at a ratio greater than one-to-one
at the time of our initial business combination as a result of the anti-dilution provisions contained in our Amended and Restated Memorandum
and Articles of Association. Any such issuances would dilute the interest of our shareholders and likely present other risks.
Our Amended and Restated Memorandum
and Articles of Association authorizes the issuance of up to 300,000,000 Class A ordinary shares, par value $0.0001 per share, 30,000,000
Class B ordinary shares, par value $0.0001 per share, and 1,000,000 preference shares, par value $0.0001 per share. Immediately after
our initial public offering, there were 277,000,000 and 23,000,000 authorized but unissued Class A ordinary shares and Class B ordinary
shares, respectively, available for issuance which amount does not take into account shares reserved for issuance upon exercise of outstanding
warrants or shares issuable upon conversion of the Class B ordinary shares, if any. The Class B ordinary shares will automatically convert
into Class A ordinary shares (which such Class A ordinary shares delivered upon conversion will not have any redemption rights or be entitled
to liquidating distributions from the trust account if we fail to consummate an initial business combination) at the time of our initial
business combination or earlier at the option of the holders thereof as described herein and in our Amended and Restated Memorandum and
Articles of Association. Immediately after our initial public offering, there will be no preference shares issued and outstanding.
We may issue a substantial
number of additional Class A ordinary shares or preference shares to complete our initial business combination or under an employee incentive
plan after completion of our initial business combination. We may also issue Class A ordinary shares in connection with our redeeming
the warrants as described in “Description of Securities — Warrants — Public Shareholders’ and Forward Purchase
Warrants” or upon conversion of the Class B ordinary shares at a ratio greater than one-to-one at the time of our initial business
combination as a result of the anti-dilution provisions as set forth herein. However, our Amended and Restated Memorandum and Articles
of Association provide, among other things, that prior to or in connection with our initial business combination, we may not issue additional
shares that would entitle the holders thereof to (i) receive funds from the trust account or (ii) vote on any initial business combination
or on any other proposal presented to shareholders prior to or in connection with the completion of an initial business combination. These
provisions of our Amended and Restated Memorandum and Articles of Association, like all provisions of our Amended and Restated Memorandum
and Articles of Association, may be amended with a shareholder vote. The issuance of additional ordinary or preference shares • may
significantly dilute the equity interest of investors in our initial public offering, which dilution would increase if the anti-dilution
provisions in the Class B ordinary shares resulted in the issuance of Class A ordinary shares on a greater than one-to-one basis upon
conversion of the Class B ordinary shares;
| ● | may subordinate the rights of holders of Class A ordinary shares if preference shares are issued with
rights senior to those afforded our Class A ordinary shares; |
| ● | could cause a change in control if a substantial number of Class A ordinary shares are issued, which may
affect, among other things, our ability to use our net operating loss carry forwards, if any, and could result in the resignation or removal
of our present officers and directors; |
| ● | may have the effect of delaying or preventing a change of control of us by diluting the share ownership
or voting rights of a person seeking to obtain control of us; |
| ● | may adversely affect prevailing market prices for our units, Class A ordinary shares and/or warrants;
and |
| ● | may not result in adjustment to the exercise price of our warrants. |
Unlike some other similarly structured blank
check companies, our Sponsor will receive additional Class A ordinary shares if we issue shares to consummate an initial business combination.
The Founder Shares will automatically
convert into Class A ordinary shares (which such Class A ordinary shares delivered upon conversion will not have any redemption rights
or be entitled to liquidating distributions from the trust account if we fail to consummate an initial business combination) at the time
of our initial business combination or earlier at the option of the holders thereof at a ratio such that the number of Class A ordinary
shares issuable upon conversion of all Founder Shares will equal, in the aggregate, on an as-converted basis, 20% of the sum of (i) the
total number of Ordinary Shares issued and outstanding upon completion of our initial public offering (less the total number of Class
B ordinary shares forfeited (if any) by the Sponsor to the extent less than 5,000,000 units are purchased under the Forward Purchase Agreement)
and the number of Class A ordinary shares that may be sold pursuant to the Forward Purchase Agreement, if any, plus (ii) the total number
of Class A ordinary shares issued or deemed issued or issuable upon conversion or exercise of any equity-linked securities or rights issued
or deemed issued, by the Company in connection with or in relation to the consummation of the initial business combination, excluding
any Class A ordinary shares or equity-linked securities exercisable for or convertible into Class A ordinary shares issued, deemed issued,
or to be issued, to any seller in the initial business combination, any Private Placement Warrants issued to our Sponsor, any of its affiliates
or any members of our Management Team upon conversion of working capital loans and any Forward Purchase Warrants. In no event will the
Class B ordinary shares convert into Class A ordinary shares at a rate of less than one-to-one. This is different than some other similarly
structured blank check companies in which the Initial Shareholders will only be issued an aggregate of 20% of the total number of shares
to be outstanding prior to the initial business combination.
Resources could be wasted in researching
acquisitions that are not completed, which could materially adversely affect subsequent attempts to locate and acquire or merge with another
business. If we have not consummated our initial business combination within the required time period, our Public Shareholders may receive
only approximately $10.00 per Public Share, or less in certain circumstances, on the liquidation of our trust account and our warrants
will expire worthless.
We anticipate that the investigation
of each specific target business and the negotiation, drafting and execution of relevant agreements, disclosure documents and other instruments
will require substantial management time and attention and substantial costs for accountants, attorneys and others. If we decide not to
complete a specific initial business combination, the costs incurred up to that point for the proposed transaction likely would not be
recoverable. Furthermore, if we reach an agreement relating to a specific target business, we may fail to complete our initial business
combination for any number of reasons including those beyond our control. Any such event will result in a loss to us of the related costs
incurred which could materially adversely affect subsequent attempts to locate and acquire or merge with another business. If we have
not consummated our initial business combination within the required time period, our Public Shareholders may receive only approximately
$10.00 per Public Share, or less in certain circumstances, on the liquidation of our trust account and our warrants will expire worthless.
We may be a passive foreign investment company,
or “PFIC,” which could result in adverse U.S. federal income tax consequences to U.S. investors.
If we are a PFIC for any taxable
year (or portion thereof) that is included in the holding period of a U.S. Holder of our Class A ordinary shares or warrants, the U.S.
Holder may be subject to adverse U.S. federal income tax consequences and may be subject to additional reporting requirements. Our PFIC
status for our current and subsequent taxable years may depend on whether we qualify for the PFIC start-up exception. Depending on the
particular circumstances the application of the start-up exception may be subject to uncertainty, and there cannot be any assurance that
we will qualify for the start-up exception. Accordingly, there can be no assurances with respect to our status as a PFIC for our current
taxable year or any subsequent taxable year. Our actual PFIC status for any taxable year, however, will not be determinable until after
the end of such taxable year. Moreover, if we determine we are a PFIC for any taxable year, upon written request, we will endeavor to
provide to a U.S. Holder such information as the Internal Revenue Service (“IRS”) may require, including a PFIC Annual Information
Statement, in order to enable the U.S. Holder to make and maintain a “qualified electing fund” election, but there can be
no assurance that we will timely provide such required information, and such election would be unavailable with respect to our warrants
in all cases. We urge U.S. investors to consult their tax advisors regarding the possible application of the PFIC rules.
We may reincorporate in another jurisdiction
in connection with our initial business combination and such reincorporation may result in taxes imposed on shareholders.
We may, in connection with
our initial business combination and subject to requisite shareholder approval under the Companies Law, reincorporate in the jurisdiction
in which the target company or business is located or in another jurisdiction. The transaction may require a shareholder or warrant holder
to recognize taxable income in the jurisdiction in which the shareholder or warrant holder is a tax resident or in which its members are
resident if it is a tax transparent entity. We do not intend to make any cash distributions to shareholders or warrant holders to pay
such taxes. Shareholders or warrant holders may be subject to withholding taxes or other taxes with respect to their ownership of us after
the reincorporation.
After our initial business combination, it
is possible that a majority of our directors and officers will live outside the United States and all of our assets will be located outside
the United States; therefore investors may not be able to enforce federal securities laws or their other legal rights.
It is possible that after
our initial business combination, a majority of our directors and officers will reside outside of the United States and all of our assets
will be located outside of the United States. As a result, it may be difficult, or in some cases not possible, for investors in the United
States to enforce their legal rights, to effect service of process upon all of our directors or officers or to enforce judgments of United
States courts predicated upon civil liabilities and criminal penalties on our directors and officers under United States laws. In particular,
there is uncertainty as to whether the courts of the Cayman Islands or any other applicable jurisdictions would recognize and enforce
judgments of U.S. courts obtained against us or our directors or officers predicated upon the civil liability provisions of the securities
laws of the United States or any state in the United States or entertain original actions brought in the Cayman Islands or any other applicable
jurisdiction’s courts against us or our directors or officers predicated upon the securities laws of the United States or any state
in the United States.
We are dependent upon our executive officers
and directors and their loss could adversely affect our ability to operate.
Our operations are dependent
upon a relatively small group of individuals and, in particular, our executive officers and directors. Our operations are dependent upon
a relatively small group of individuals and, in particular, our executive officers and directors. We believe that our success depends
on the continued service of our officers and directors, at least until we have completed our initial business combination. In addition,
our executive officers and directors are not required to commit any specified amount of time to our affairs and, accordingly, will have
conflicts of interest in allocating their time among various business activities, including identifying potential business combinations
and monitoring the related due diligence. We do not have an employment agreement with, or key-man insurance on the life of, any of our
directors or executive officers.
The unexpected loss of the
services of one or more of our directors or executive officers could have a detrimental effect on us.
Our ability to successfully effect our initial
business combination and to be successful thereafter will be totally dependent upon the efforts of our key personnel, some of whom may
join us following our initial business combination. The loss of key personnel could negatively impact the operations and profitability
of our post-combination business.
Our ability to successfully
effect our initial business combination is dependent upon the efforts of our key personnel. The role of our key personnel in the target
business, however, cannot presently be ascertained. Although some of our key personnel may remain with the target business in senior management,
director or advisory positions following our initial business combination, it is likely that some or all of the management of the target
business will remain in place. While we closely scrutinize any individuals we engage after our initial business combination, we cannot
assure you that our assessment of these individuals will prove to be correct. These individuals may be unfamiliar with the requirements
of operating a company regulated by the SEC, which could cause us to have to expend time and resources helping them become familiar with
such requirements.
Our key personnel may negotiate employment
or consulting agreements with a target business in connection with a particular business combination, and a particular business combination
may be conditioned on the retention or resignation of such key personnel. These agreements may provide for them to receive compensation
following our initial business combination and as a result, may cause them to have conflicts of interest in determining whether a particular
business combination is the most advantageous.
Our key personnel may be able
to remain with our company after the completion of our initial business combination only if they are able to negotiate employment or consulting
agreements in connection with the business combination. Such negotiations would take place simultaneously with the negotiation of the
business combination and could provide for such individuals to receive compensation in the form of cash payments and/or our securities
for services they would render to us after the completion of the business combination. Such negotiations also could make such key personnel’s
retention or resignation a condition to any such agreement. The personal and financial interests of such individuals may influence their
motivation in identifying and selecting a target business. In addition, our Sponsor, upon and following consummation of an initial business
combination, will be entitled to nominate three individuals for election to our board of directors, as long as the Sponsor holds any securities
covered by the registration and shareholder rights agreement.
We may have a limited ability to assess the
management of a prospective target business and, as a result, may affect our initial business combination with a target business whose
management may not have the skills, qualifications or abilities to manage a public company.
When evaluating the desirability
of effecting our initial business combination with a prospective target business, our ability to assess the target business’s management
may be limited due to a lack of time, resources or information. Our assessment of the capabilities of the target business’s management,
therefore, may prove to be incorrect and such management may lack the skills, qualifications or abilities we suspected. Should the target
business’s management not possess the skills, qualifications or abilities necessary to manage a public company, the operations and
profitability of the post-combination business may be negatively impacted. Accordingly, any holders who choose to retain their securities
following the business combination could suffer a reduction in the value of their securities. Such holders are unlikely to have a remedy
for such reduction in value.
The officers and directors of an acquisition
candidate may resign upon completion of our initial business combination. The loss of a business combination target’s key personnel
could negatively impact the operations and profitability of our post-combination business.
The role of an acquisition
candidate’s key personnel upon the completion of our initial business combination cannot be ascertained at this time. Although we
contemplate that certain members of an acquisition candidate’s management team will remain associated with the acquisition candidate
following our initial business combination, it is possible that members of the management of an acquisition candidate will not wish to
remain in place.
Our executive officers and directors will
allocate their time to other businesses thereby causing conflicts of interest in their determination as to how much time to devote to
our affairs. This conflict of interest could have a negative impact on our ability to complete our initial business combination.
Our executive officers and
directors are not required to, and will not, commit their full time to our affairs, which may result in a conflict of interest in allocating
their time between our operations and our search for a business combination and their other businesses. We do not intend to have any full-time
employees prior to the completion of our initial business combination. Each of our executive officers is engaged in several other business
endeavors for which he may be entitled to substantial compensation, and our executive officers are not obligated to contribute any specific
number of hours per week to our affairs. Our independent directors also serve as officers and board members for other entities. If our
executive officers’ and directors’ other business affairs require them to devote substantial amounts of time to such affairs
in excess of their current commitment levels, it could limit their ability to devote time to our affairs which may have a negative impact
on our ability to complete our initial business combination. For a complete discussion of our executive officers’ and directors’
other business affairs, please see “Management — Officers and Directors.”
Our officers and directors presently have,
and any of them in the future may have, additional, fiduciary or contractual obligations to other entities, including another blank check
company, and, accordingly, may have conflicts of interest in determining to which entity a particular business opportunity should be presented.
Until we consummate our initial
business combination, we intend to engage in the business of identifying and combining with one or more businesses or entities. Each of
our officers and directors presently has, and any of them in the future may have, additional fiduciary or contractual obligations to other
entities pursuant to which such officer or director is or will be required to present a business combination opportunity to such entity.
Accordingly, they may have conflicts of interest in determining to which entity a particular business opportunity should be presented.
These conflicts may not be resolved in our favor and a potential target business may be presented to another entity prior to its presentation
to us.
In addition, our Sponsor,
officers and directors may in the future become affiliated with other blank check companies that may have acquisition objectives that
are similar to ours. Accordingly, they may have conflicts of interest in determining to which entity a particular business opportunity
should be presented. These conflicts may not be resolved in our favor and a potential target business may be presented to such other blank
check companies prior to its presentation to us. Our Amended and Restated Memorandum and Articles of Association provide that, to the
maximum extent permitted by law, we renounce any interest or expectancy in, or in being offered an opportunity to participate in any business
combination opportunity which may be a corporate opportunity for both us and our Sponsor and another entity, including any entities managed
by our Sponsor or its affiliates and any companies in which our Sponsor or such entities have invested about which any of our officers
or directors acquires knowledge and we will waive any claim or cause of action we may have in respect thereof. In addition, our amended
and restated articles of association contain provisions to exculpate and indemnify, to the maximum extent permitted by law, such persons
in respect of any liability, obligation or duty to the company that may arise as a consequence of such persons becoming aware of any business
opportunity or failing to present such business opportunity.
For a complete discussion
of our executive officers’ and directors’ business affiliations and the potential conflicts of interest that you should be
aware of, please see “Management — Officers and Directors,” “Management — Conflicts of Interest” and
“Certain Relationships and Related Party Transactions.”
Our executive officers, directors, security
holders and their respective affiliates may have competitive pecuniary interests that conflict with our interests.
We have not adopted a policy
that expressly prohibits our directors, executive officers, security holders or affiliates from having a direct or indirect pecuniary
or financial interest in any investment to be acquired or disposed of by us or in any transaction to which we are a party or have an interest.
In fact, we may enter into a business combination with a target business that is affiliated with our Sponsor, our directors or executive
officers, although we do not intend to do so. Nor do we have a policy that expressly prohibits any such persons from engaging for their
own account in business activities of the types conducted by us. Accordingly, such persons or entities may have a conflict between their
interests and ours.
The personal and financial
interests of our directors and officers may influence their motivation in timely identifying and selecting a target business and completing
a business combination. Consequently, our directors’ and officers’ discretion in identifying and selecting a suitable target
business may result in a conflict of interest when determining whether the terms, conditions and timing of a particular business combination
are appropriate and in the company’s best interests. If this were the case and the directors fail to act in accordance with their
fiduciary duties to us as a matter of Cayman Islands law, we may have a claim against such individuals. See the section titled “Description
of Securities — Certain Differences in Corporate Law — Shareholders’ Suits” for further information on the ability
to bring such claims. However, we might not ultimately be successful in any claim we may make against them for such reason.
We may engage in a business combination with
one or more target businesses that have relationships with entities that may be affiliated with our sponsor, executive officers, directors
or existing holders which may raise potential conflicts of interest.
In light of the involvement
of our Sponsor, executive officers and directors with other entities, we may decide to acquire one or more businesses affiliated with
our Initial Shareholders. Our directors also serve as officers and board members for other entities, including, without limitation, those
described under “Management — Conflicts of Interest.” Our Sponsor, officers and directors may Sponsor, form or participate
in other blank check companies similar to ours during the period in which we are seeking an initial business combination. Such entities
may compete with us for business combination opportunities. Our Sponsor, officers and directors are not currently aware of any specific
opportunities for us to complete our initial business combination with any entities with which they are affiliated, and there have been
no substantive discussions concerning a business combination with any such entity or entities. Although we will not be specifically focusing
on, or targeting, any transaction with any affiliated entities, we would pursue such a transaction if we determined that such affiliated
entity met our criteria and guidelines for a business combination as set forth in “Proposed Business — Effecting Our Initial
Business Combination — Evaluation of a Target Business and Structuring of Our Initial Business Combination” and such transaction
was approved by a majority of our independent and disinterested directors. Despite our agreement to obtain an opinion from an independent
investment banking firm or another independent entity that commonly renders valuation opinions regarding the fairness to our company from
a financial point of view of a business combination with one or more domestic or international businesses affiliated with our Initial
Shareholders, potential conflicts of interest still may exist and, as a result, the terms of the business combination may not be as advantageous
to our Public Shareholders as they would be absent any conflicts of interest.
Since our sponsor, executive officers and
directors will lose their entire investment in us if our initial business combination is not completed (other than with respect to Public
Shares they may have acquired during or may acquire after our initial public offering), a conflict of interest may arise in determining
whether a particular business combination target is appropriate for our initial business combination.
On October 1, 2020, our
Sponsor paid $25,000, or approximately $0.004 per share, to cover certain expenses on our behalf in consideration of 5,750,000 Class
B ordinary shares, par value $0.0001. Prior to the initial investment in the company of $25,000 by the Sponsor, the company had no
assets, tangible or intangible. The per share price of the Founder Shares was determined by dividing the amount contributed to the
company by the number of Founder Shares issued. In December 2020, we effected a share capitalization with respect to our Class B
ordinary shares resulting in our Sponsor holding 7,000,000 Founder Shares. Our Sponsor subsequently transferred 25,000 Class B
ordinary shares to each of Joe Baker, Kathleen Griffin Stack, Tim O’Connor and Michael Weinstein, our independent directors at the the time of our initial public offering. Upon Joe Baker’s resignation, the Sponsor repurchased the 25,000 Class B ordinary shares
previously transferred to him by our Sponsor.
The Founder Shares will be
worthless if we do not complete an initial business combination. Our Sponsor purchased an aggregate of 6,600,000 Private Placement Warrants,
each exercisable to purchase one Class A ordinary share at $11.50 per share, subject to adjustment, for an aggregate purchase price of
$5,775,500, in a private placement that closed simultaneously with the closing of our initial public offering. Certain of these Private
Placement Warrants are subject to forfeiture as described under “Summary — The Offering — GEPT arrangements”.
If we do not consummate an initial business within 24 months from the closing of our initial public offering, the Private Placement Warrants
will expire worthless. The personal and financial interests of our executive officers and directors may influence their motivation in
identifying and selecting a target business combination, completing an initial business combination and influencing the operation of the
business following the initial business combination. This risk may become more acute as the 24-month anniversary of the closing of our
initial public offering nears, which is the deadline for our consummation of an initial business combination.
We may issue notes or other debt securities,
or otherwise incur substantial debt, to complete a business combination, which may adversely affect our leverage and financial condition
and thus negatively impact the value of our shareholders’ investment in us.
Although we have no commitments
as of the date of this Report to issue any notes or other debt securities, or to otherwise incur outstanding debt following our initial
public offering, we may choose to incur substantial debt to complete our initial business combination. We and our officers have agreed
that we will not incur any indebtedness unless we have obtained from the lender a waiver of any right, title, interest or claim of any
kind in or to the monies held in the trust account. As such, no issuance of debt will affect the per share amount available for redemption
from the trust account. Nevertheless, the incurrence of debt could have a variety of negative effects, including:
| ● | default and foreclosure on our assets if our operating revenues after an initial business combination
are insufficient to repay our debt obligations; |
| ● | acceleration of our obligations to repay the indebtedness even if we make all principal and interest payments
when due if we breach certain covenants that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation
of that covenant; |
| ● | our immediate payment of all principal and accrued interest, if any, if the debt security is payable on
demand; |
| ● | our inability to obtain necessary additional financing if the debt security contains covenants restricting
our ability to obtain such financing while the debt security is outstanding; |
| ● | our inability to pay dividends on our Class A ordinary shares; |
| ● | using a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce
the funds available for dividends on our Class A ordinary shares if declared, expenses, capital expenditures, acquisitions and other general
corporate purposes; |
| ● | limitations on our flexibility in planning for and reacting to changes in our business and in the industry
in which we operate; |
| ● | increased vulnerability to adverse changes in general economic, industry and competitive conditions and
adverse changes in government regulation; and |
| ● | limitations on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions,
debt service requirements, execution of our strategy and other purposes and other disadvantages compared to our competitors who have less
debt. |
We may only be able to complete one business
combination with the proceeds of our initial public offering, the sale of the Private Placement Warrants and the $824,500 paid by GEPT
under the Forward Purchase Agreement at the closing of our initial public offering, which will cause us to be solely dependent on a single
business which may have a limited number of products or services. This lack of diversification may negatively impact our operations and
profitability.
The net proceeds from our
initial public offering, the sale of the Private Placement Warrants and the $824,500 paid by GEPT under the Forward Purchase Agreement
at the closing of our initial public offering provided us with approximately $221.9 million that we may use to complete our initial business
combination (such amount representing the amount of proceeds held in the trust account less approximately $8.1 million of deferred underwriting
fees).
We may effectuate our initial
business combination with a single-target business or multiple-target businesses simultaneously or within a short period of time. However,
we may not be able to effectuate our initial business combination with more than one target business because of various factors, including
the existence of complex accounting issues and the requirement that we prepare and file pro forma financial statements with the SEC that
present operating results and the financial condition of several target businesses as if they had been operated on a combined basis. By
completing our initial business combination with only a single entity, our lack of diversification may subject us to numerous economic,
competitive and regulatory developments. Further, we would not be able to diversify our operations or benefit from the possible spreading
of risks or offsetting of losses, unlike other entities which may have the resources to complete several business combinations in different
industries or different areas of a single industry. Accordingly, the prospects for our success may be:
| ● | solely dependent upon the performance of a single business, property or asset; or |
| ● | dependent upon the development or market acceptance of a single or limited number of products, processes
or services. |
This lack of diversification
may subject us to numerous economic, competitive and regulatory risks, any or all of which may have a substantial adverse impact upon
the particular industry in which we may operate subsequent to our initial business combination.
We may attempt to simultaneously complete
business combinations with multiple prospective targets, which may hinder our ability to complete our initial business combination and
give rise to increased costs and risks that could negatively impact our operations and profitability.
If we determine to simultaneously
acquire several businesses that are owned by different sellers, we will need for each of such sellers to agree that our purchase of its
business is contingent on the simultaneous closings of the other business combinations, which may make it more difficult for us, and delay
our ability, to complete our initial business combination. With multiple business combinations, we could also face additional risks, including
additional burdens and costs with respect to possible multiple negotiations and due diligence (if there are multiple sellers) and the
additional risks associated with the subsequent assimilation of the operations and services or products of the acquired companies in a
single operating business. If we are unable to adequately address these risks, it could negatively impact our profitability and results
of operations.
We may attempt to complete our initial business
combination with a private company about which little information is available, which may result in a business combination with a company
that is not as profitable as we suspected, if at all.
In pursuing our acquisition
strategy, we may seek to effectuate our initial business combination with a privately held company. By definition, very little public
information generally exists about private companies, and we could be required to make our decision on whether to pursue a potential initial
business combination on the basis of limited information, which may result in a business combination with a company that is not as profitable
as we suspected, if at all.
Our management may not be able to maintain
control of a target business after our initial business combination. Upon the loss of control of a target business, new management may
not possess the skills, qualifications or abilities necessary to profitably operate such business.
We may structure our initial
business combination so that the post-transaction company in which our public shareholders own shares will own less than 100% of the equity
interests or assets of a target business, but we will only complete such business combination if the post-transaction company owns or
acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient
for us not to be required to register as an investment company under the Investment Company Act. We will not consider any transaction
that does not meet such criteria. Even if the post-transaction company owns 50% or more of the voting securities of the target, our shareholders
prior to our initial business combination may collectively own a minority interest in the post business combination company, depending
on valuations ascribed to the target and us in the business combination. For example, we could pursue a transaction in which we issue
a substantial number of new Class A ordinary shares in exchange for all of the outstanding capital stock of a target. In this case, we
would acquire a 100% interest in the target. However, as a result of the issuance of a substantial number of new Class A ordinary shares,
our shareholders immediately prior to such transaction could own less than a majority of our outstanding Class A ordinary shares subsequent
to such transaction. In addition, other minority shareholders may subsequently combine their holdings resulting in a single person or
group obtaining a larger share of the company’s shares than we initially acquired. Accordingly, this may make it more likely that
our management will not be able to maintain control of the target business.
We may seek business combination opportunities
with a high degree of complexity that require significant operational improvements, which could delay or prevent us from achieving our
desired results.
We may seek business combination
opportunities with large, highly complex companies that we believe would benefit from operational improvements. While we intend to implement
such improvements, to the extent that our efforts are delayed or we are unable to achieve the desired improvements, the business combination
may not be as successful as we anticipate.
To the extent we complete
our initial business combination with a large complex business or entity with a complex operating structure, we may also be affected by
numerous risks inherent in the operations of the business with which we combine, which could delay or prevent us from implementing our
strategy. Although our management team will endeavor to evaluate the risks inherent in a particular target business and its operations,
we may not be able to properly ascertain or assess all of the significant risk factors until we complete our business combination. If
we are not able to achieve our desired operational improvements, or the improvements take longer to implement than anticipated, we may
not achieve the gains that we anticipate. Furthermore, some of these risks and complexities may be outside of our control and leave us
with no ability to control or reduce the chances that those risks and complexities will adversely impact a target business. Such combination
may not be as successful as a combination with a smaller, less complex organization.
We do not have a specified maximum redemption
threshold. The absence of such a redemption threshold may make it possible for us to complete our initial business combination with which
a substantial majority of our shareholders do not agree.
Our Amended and Restated Memorandum
and Articles of Association do not provide a specified maximum redemption threshold, except that in no event will we redeem our Public
Shares in an amount that would cause our net tangible assets to be less than $5,000,001 (so that we do not then become subject to the
SEC’s “penny stock” rules). As a result, we may be able to complete our initial business combination even though a substantial
majority of our Public Shareholders do not agree with the transaction and have redeemed their shares or, if we seek shareholder approval
of our initial business combination and do not conduct redemptions in connection with our initial business combination pursuant to the
tender offer rules, have entered into privately negotiated agreements to sell their shares to our Sponsor, officers, directors, advisors
or their affiliates. In the event the aggregate cash consideration we would be required to pay for all Class A ordinary shares that are
validly submitted for redemption plus any amount required to satisfy cash conditions pursuant to the terms of the proposed business combination
exceed the aggregate amount of cash available to us, we will not complete the business combination or redeem any shares, all Class A ordinary
shares submitted for redemption will be returned to the holders thereof, and we instead may search for an alternate business combination.
In order to effectuate an initial business
combination, blank check companies have, in the recent past, amended various provisions of their charters and other governing instruments,
including their warrant agreements. We cannot assure you that we will not seek to amend our Amended and Restated Memorandum and Articles
of Association or governing instruments in a manner that will make it easier for us to complete our initial business combination that
our shareholders may not support.
In order to effectuate a business
combination, blank check companies have, in the recent past, amended various provisions of their charters and governing instruments, including
their warrant agreements. For example, blank check companies have amended the definition of business combination, increased redemption
thresholds, extended the time to consummate an initial business combination and, with respect to their warrants, amended their warrant
agreements to require the warrants to be exchanged for cash and/or other securities. Amending our Amended and Restated Memorandum and
Articles of Association require at least a Special Resolution of our shareholders as a matter of Cayman Islands law, and amending our
warrant agreement will require a vote of holders of at least 65% of the public warrants and, solely with respect to any amendment to the
terms of the Private Placement Warrants or any provision of the warrant agreement with respect to the Private Placement Warrants, 65%
of the number of the then outstanding Private Placement Warrants. In addition, our Amended and Restated Memorandum and Articles of Association
require us to provide our Public Shareholders with the opportunity to redeem their Public Shares for cash if we propose an amendment to
our Amended and Restated Memorandum and Articles of Association (A) that would modify the substance or timing of our obligation to provide
holders of our Class A ordinary shares the right to have their shares redeemed in connection with our initial business combination or
to redeem 100% of our Public Shares if we do not complete our initial business combination within 24 months from the closing of our initial
public offering or (B) with respect to any other provision relating to the rights of holders of our Class A ordinary shares. To the extent
any of such amendments would be deemed to fundamentally change the nature of any of the securities offered through the registration statement
we would register, or seek an exemption from registration for, the affected securities.
The provisions of our Amended and Restated
Memorandum and Articles of Association that relate to the rights of holders of our Class A ordinary shares (and corresponding provisions
of the agreement governing the release of funds from our trust account) may be amended with the approval of a Special Resolution which
requires a lower amendment threshold than that of some other blank check companies. It may be easier for us, therefore, to amend our Amended
and Restated Memorandum and Articles of Association to facilitate the completion of an initial business combination that some of our shareholders
may not support.
Some other blank check companies
have a provision in their charter which prohibits the amendment of certain of its provisions, including those which relate to the rights
of a company’s shareholders, without approval by a certain percentage of the company’s shareholders. In those companies, amendment
of these provisions typically requires approval by between 90% and 100% of the company’s shareholders. Our Amended and Restated
Memorandum and Articles of Association provide that any of its provisions related to the rights of holders of our Class A ordinary shares
(including the requirement to deposit proceeds of our initial public offering and the private placement of warrants into the trust account
and not release such amounts except in specified circumstances, and to provide redemption rights to Public Shareholders as described herein)
may be amended if approved by Special Resolution, and corresponding provisions of the trust agreement governing the release of funds from
our trust account may be amended if approved by holders of at least 65% of our Ordinary Shares; provided that the provisions of our Amended
and Restated Memorandum and Articles of Association governing the appointment or removal of directors prior to our initial business combination
may only be amended by a Special Resolution passed by not less than 90% of our Ordinary Shares who attend and vote at our shareholder
meeting. Our Sponsor and its permitted transferees, if any, who collectively beneficially owned, on an as-converted basis, 20% of our
Class A ordinary shares as of the closing of our initial public offering (assuming they do not purchase any units in our initial public
offering), will participate in any vote to amend our Amended and Restated Memorandum and Articles of Association and/or trust agreement
and will have the discretion to vote in any manner they choose. As a result, we may be able to amend the provisions of our Amended and
Restated Memorandum and Articles of Association which govern our pre-business combination behavior more easily than some other blank check
companies, and this may increase our ability to complete a business combination with which you do not agree. Our shareholders may pursue
remedies against us for any breach of our Amended and Restated Memorandum and Articles of Association.
Our Sponsor, executive officers
and directors have agreed, pursuant to agreements with us, that they will not propose any amendment to our Amended and Restated Memorandum
and Articles of Association (A) that would modify the substance or timing of our obligation to provide holders of our Class A ordinary
shares the right to have their shares redeemed in connection with our initial business combination or to redeem 100% of our Public Shares
if we do not complete our initial business combination within 24 months from the closing of our initial public offering or (B) with respect
to any other provision relating to the rights of holders of our Class A ordinary shares, in each case, unless we provide our Public Shareholders
with the opportunity to redeem their Class A ordinary shares upon approval of any such amendment at a per-share price, payable in cash,
equal to the aggregate amount then on deposit in the trust account, including interest earned on the funds held in the trust account and
not previously released to us to pay our income taxes, if any, divided by the number of the then-outstanding Public Shares. Our shareholders
are not parties to, or third-party beneficiaries of, these agreements and, as a result, will not have the ability to pursue remedies against
our Sponsor, executive officers or directors for any breach of these agreements. As a result, in the event of a breach, our shareholders
would need to pursue a shareholder derivative action, subject to applicable law.
We may be unable to obtain additional financing
to complete our initial business combination or to fund the operations and growth of a target business, which could compel us to restructure
or abandon a particular business combination. If we have not consummated our initial business combination within the required time period,
our Public Shareholders may receive only approximately $10.00 per Public Share, or less in certain circumstances, on the liquidation of
our trust account and our warrants will expire worthless.
Although we believe that the
net proceeds of our initial public offering and the sale of the Private Placement Warrants will be sufficient to allow us to complete
our initial business combination, because we have not yet selected any prospective target business we cannot ascertain the capital requirements
for any particular transaction. If the net proceeds of our initial public offering and the sale of the Private Placement Warrants prove
to be insufficient, either because of the size of our initial business combination, the depletion of the available net proceeds in search
of a target business, the obligation to redeem for cash a significant number of shares from shareholders who elect redemption in connection
with our initial business combination or the terms of negotiated transactions to purchase shares in connection with our initial business
combination, we may be required to seek additional financing or to abandon the proposed business combination. We cannot assure you that
such financing will be available on acceptable terms, if at all. The current economic environment may make it difficult for companies
to obtain acquisition financing. To the extent that additional financing proves to be unavailable when needed to complete our initial
business combination, we would be compelled to either restructure the transaction or abandon that particular business combination and
seek an alternative target business candidate. If we have not consummated our initial business combination within the required time period,
our Public Shareholders may receive only approximately $10.00 per Public Share, or less in certain circumstances, on the liquidation of
our trust account and our warrants will expire worthless. In addition, even if we do not need additional financing to complete our initial
business combination, we may require such financing to fund the operations or growth of the target business. The failure to secure additional
financing could have a material adverse effect on the continued development or growth of the target business. None of our officers, directors
or shareholders is required to provide any financing to us in connection with or after our initial business combination.
Our sponsor controls a substantial interest
in us and thus may exert a substantial influence on actions requiring a shareholder vote, potentially in a manner that you do not support.
Our Initial Shareholders own,
on an as-converted basis, 20% of our issued and outstanding Ordinary Shares (assuming it does not purchase any units in our initial public
offering). Accordingly, it may exert a substantial influence on actions requiring a shareholder vote, potentially in a manner that you
do not support, including amendments to our Amended and Restated Memorandum and Articles of Association. If our Sponsor purchases any
units in our initial public offering or if our Sponsor purchases any additional Class A ordinary shares in the aftermarket or in privately
negotiated transactions, this would increase its control. Neither our Sponsor nor, to our knowledge, any of our officers or directors,
have any current intention to purchase additional securities, other than as disclosed in our final prospectus related to the initial public
offering. Factors that would be considered in making such additional purchases would include consideration of the current trading price
of our Class A ordinary shares. In addition, our board of directors, whose members were elected by our Sponsor, is and will be divided
into three classes, each of which will generally serve for a term of three years with only one class of directors being elected in each
year. We may not hold an annual meeting of shareholders to elect new directors prior to the completion of our initial business combination,
in which case all of the current directors will continue in office until at least the completion of the business combination. If there
is an annual meeting, as a consequence of our “staggered” board of directors, only a minority of the board of directors will
be considered for election and our Sponsor, because of its ownership position, will control the outcome, as only holders of our Class
B ordinary shares will have the right to vote on the election of directors and to remove directors prior to our initial business combination.
Accordingly, our Sponsor will continue to exert control at least until the completion of our initial business combination. In addition,
we have agreed not to enter into a definitive agreement regarding an initial business combination without the prior consent of our Sponsor.
Our Sponsor contributed $25,000, or approximately
$0.004 per Founder Share, and, accordingly, you will experience immediate and substantial dilution from the purchase of our Class A ordinary
shares.
The difference between the
public offering price per share (allocating all of the unit purchase price to the Class A ordinary share and none to the warrant included
in the unit) and the pro forma net tangible book value per Class A ordinary share after our initial public offering constitutes the dilution
to you and the other investors in our initial public offering. Our Sponsor acquired the Founder Shares at a nominal price, significantly
contributing to this dilution. Upon closing of our initial public offering, and assuming no value is ascribed to the warrants included
in the units, you and the other Public Shareholders incurred an immediate and substantial dilution of approximately $9.39 per share, the
difference between the pro forma net tangible book value per share of $0.61 and the initial offering price of $10.00 per unit. This dilution
would increase to the extent that the anti-dilution provisions of the Founder Shares result in the issuance of Class A ordinary shares
on a greater than one-to-one basis upon conversion of the Founder Shares at the time of our initial business combination and would become
exacerbated to the extent that Public Shareholders seek redemptions from the trust for their Public Shares. In addition, because of the
anti-dilution protection in the Founder Shares, any equity or equity-linked securities issued in connection with our initial business
combination would be disproportionately dilutive to our Class A ordinary shares.
We may amend the terms of the warrants in
a manner that may be adverse to holders of public warrants with the approval by the holders of at least 65% of the then-outstanding public
warrants. As a result, the exercise price of your warrants could be increased, the exercise period could be shortened and the number of
our Class A ordinary shares purchasable upon exercise of a warrant could be decreased, all without your approval.
Our warrants were issued in
registered form under a warrant agreement between Continental Stock Transfer & Trust Company, as warrant agent, and us. The warrant
agreement provides that the terms of the warrants may be amended without the consent of any holder for the purpose of (i) curing any ambiguity
or correct any mistake, including to conform the provisions of the warrant agreement to the description of the terms of the warrants and
the warrant agreement set forth in the final prospectus related to the initial public offering, or defective provision (ii) amending the
provisions relating to cash dividends on Ordinary Shares as contemplated by and in accordance with the warrant agreement or (iii) adding
or changing any provisions with respect to matters or questions arising under the warrant agreement as the parties to the warrant agreement
may deem necessary or desirable and that the parties deem to not adversely affect the rights of the registered holders of the warrants,
provided that the approval by the holders of at least 65% of the then-outstanding public warrants is required to make any change that
adversely affects the interests of the registered holders of public warrants. Accordingly, we may amend the terms of the public warrants
in a manner adverse to a holder if holders of at least 65% of the then-outstanding public warrants approve of such amendment and, solely
with respect to any amendment to the terms of the Private Placement Warrants or any provision of the warrant agreement with respect to
the Private Placement Warrants, 65% of the number of the then outstanding Private Placement Warrants. Although our ability to amend the
terms of the public warrants with the consent of at least 65% of the then-outstanding public warrants is unlimited, examples of such amendments
could be amendments to, among other things, increase the exercise price of the warrants, convert the warrants into cash, shorten the exercise
period or decrease the number of Class A ordinary shares purchasable upon exercise of a warrant.
Our warrant agreement designates the courts
of the State of New York or the United States District Court for the Southern District of New York as the sole and exclusive forum for
certain types of actions and proceedings that may be initiated by holders of our warrants, which could limit the ability of warrant holders
to obtain a favorable judicial forum for disputes with our company.
Our warrant agreement provides
that, subject to applicable law, (i) any action, proceeding or claim against us arising out of or relating in any way to the warrant agreement,
including under the Securities Act, will be brought and enforced in the courts of the State of New York or the United States District
Court for the Southern District of New York, and (ii) that we irrevocably submit to such jurisdiction, which jurisdiction shall be the
exclusive forum for any such action, proceeding or claim. We will waive any objection to such exclusive jurisdiction and that such courts
represent an inconvenient forum.
Notwithstanding the foregoing,
these provisions of the warrant agreement will not apply to suits brought to enforce any liability or duty created by the Exchange Act
or any other claim for which the federal district courts of the United States of America are the sole and exclusive forum. Any person
or entity purchasing or otherwise acquiring any interest in any of our warrants shall be deemed to have notice of and to have consented
to the forum provisions in our warrant agreement. If any action, the subject matter of which is within the scope of the forum provisions
of the warrant agreement, is filed in a court other than a court of the State of New York or the United States District Court for the
Southern District of New York (a “foreign action”) in the name of any holder of our warrants, such holder shall be deemed
to have consented to: (x) the personal jurisdiction of the state and federal courts located in the State of New York in connection with
any action brought in any such court to enforce the forum provisions (an “enforcement action”), and (y) having service of
process made upon such warrant holder in any such enforcement action by service upon such warrant holder’s counsel in the foreign
action as agent for such warrant holder.
This choice-of-forum provision
may limit a warrant holder’s ability to bring a claim in a judicial forum that it finds favorable for disputes with our company,
which may discourage such lawsuits. Alternatively, if a court were to find this provision of our warrant agreement inapplicable or unenforceable
with respect to one or more of the specified types of actions or proceedings, we may incur additional costs associated with resolving
such matters in other jurisdictions, which could materially and adversely affect our business, financial condition and results of operations
and result in a diversion of the time and resources of our Management and board of directors.
We may redeem your unexpired warrants prior
to their exercise at a time that is disadvantageous to you, thereby making your warrants worthless.
We have the ability to
redeem the outstanding public warrants at any time after they become exercisable and prior to their expiration, at a price of $0.01
per warrant; provided that (i) the closing price of our Class A ordinary shares equals or exceeds $18.00 per share (as adjusted for
adjustments to the number of shares issuable upon exercise or the exercise price of a warrant as described under the heading
“Description of Securities — Warrants — Public Shareholders’ and Forward Purchase Warrants —
Anti-Dilution Adjustments”) for any 20 trading days within a 30 trading-day period ending on the third trading day prior to
proper notice of such redemption and (ii) certain other conditions are met. If and when the warrants become redeemable by us, we may
exercise our redemption right even if we are unable to register or qualify the underlying securities for sale under all applicable
state securities laws. As a result, we may redeem the warrants as set forth above even if the holders are otherwise unable to
exercise the warrants. Redemption of the outstanding warrants could force you to (i) exercise your warrants and pay the exercise
price therefor at a time when it may be disadvantageous for you to do so, (ii) sell your warrants at the then-current market price
when you might otherwise wish to hold your warrants or (iii) accept the nominal redemption price which, at the time the outstanding
warrants are called for redemption, we expect would be substantially less than the market value of your warrants.
In addition, we have the ability
to redeem the outstanding public warrants at any time 90 days after they become exercisable and prior to their expiration, at a price
of $0.10 per warrant upon a minimum of 30 days’ prior written notice of redemption; provided that (i) the closing price of our Class
A ordinary shares equals or exceeds $10.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the
exercise price of a warrant as described under the heading “Description of Securities — Warrants — Public Shareholders’
and Forward Purchase Warrants — Anti-Dilution Adjustments”) for any 20 trading days within a 30 trading-day period ending
on the third trading day prior to proper notice of such redemption and (ii) certain other conditions are met, including that holders will
be able to exercise their warrants prior to redemption for a number of Class A ordinary shares determined based on the redemption date
and the fair market value of our Class A ordinary shares. Please see “Description of Securities — Warrants — Public
Shareholders’ and Forward Purchase Warrants — Redemption of warrants when the price per Class A ordinary share equals or exceeds
$10.00.” The value received upon exercise of the warrants (1) may be less than the value the holders would have received if they
had exercised their warrants at a later time where the underlying share price is higher and (2) may not compensate the holders for the
value of the warrants, including because the number of Ordinary Shares received is capped at 0.365 Class A ordinary shares per warrant
(subject to adjustment) irrespective of the remaining life of the warrants.
None of the Private Placement
Warrants or Forward Purchase Warrants will be redeemable by us as (except as set forth under “Description of Securities —
Warrants — Public Shareholders’ and Forward Purchase Warrants — Redemption of warrants when the price per Class A ordinary
share equals or exceeds $10.00”) so long as they are held by our Sponsor, GEPT or their permitted transferees.
Our warrants may have an adverse effect on
the market price of our Class A ordinary shares and make it more difficult to effectuate our initial business combination.
We issued warrants to purchase
up to 11,500,000 Class A ordinary shares as part of the units offered, and simultaneously with the closing of our initial public offering,
we issued in a private placement an aggregate of 6,600,000 Private Placement Warrants, each exercisable to purchase one Class A ordinary
share at $11.50 per share, subject to adjustment. In addition, if the Sponsor, its affiliates or a member of our Management Team makes
any working capital loans, it may convert up to $1,500,000 of such loans into up to an additional 1,500,000 Private Placement Warrants,
at the price of $1.00 per warrant. We may also issue up to 2,125,000 Forward Purchase Warrants pursuant to the Forward Purchase Agreement.
We may also issue Class A ordinary shares in connection with our redemption of our warrants.
To the extent we issue Ordinary
Shares for any reason, including to effectuate a business combination, the potential for the issuance of a substantial number of additional
Class A ordinary shares upon exercise of these warrants could make us a less attractive acquisition vehicle to a target business. Such
warrants, when exercised, will increase the number of issued and outstanding Class A ordinary shares and reduce the value of the Class
A ordinary shares issued to complete the business transaction. Therefore, our warrants may make it more difficult to effectuate a business
transaction or increase the cost of acquiring the target business.
Because each unit contains one-half of one
warrant and only a whole warrant may be exercised, the units may be worth less than units of other blank check companies.
Each unit contains one-half
of one redeemable warrant. Pursuant to the warrant agreement, no fractional warrants will be issued upon separation of the units, and
only whole units will trade. If, upon exercise of the warrants, a holder would be entitled to receive a fractional interest in a share,
we will, upon exercise, round down to the nearest whole number the number of Class A ordinary shares to be issued to the warrant holder.
This is different from other offerings similar to ours whose units include one ordinary share and one whole warrant to purchase one whole
share. We have established the components of the units in this way in order to reduce the dilutive effect of the warrants upon completion
of a business combination since the warrants will be exercisable in the aggregate for one-half of the number of shares compared to units
that each contain a whole warrant to purchase one whole share, thus making us, we believe, a more attractive merger partner for target
businesses. Nevertheless, this unit structure may cause our units to be worth less than if a unit included a warrant to purchase one whole
share.
A provision of our warrant agreement may
make it more difficult for us to consummate an initial business combination.
Unlike most blank check companies,
if (i) we issue additional Class A ordinary shares or equity-linked securities for capital raising purposes in connection with the closing
of our initial business combination (excluding any Forward Purchase Securities) at a Newly Issued Price of less than $9.20 per ordinary
share, (ii) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon,
available for the funding of our initial business combination on the date of the consummation of our initial business combination (net
of redemptions), and (iii) the Market Value is below $9.20 per share, then the exercise price of the warrants will be adjusted to be equal
to 115% of the higher of the Market Value and the Newly Issued Price, and the $18.00 per share redemption trigger prices described below
under “Description of Securities — Warrants — Public Shareholders’ and Forward Purchase Warrants — Redemption
of warrants when the price per Class A ordinary share equals or exceeds $18.00” and “Redemption of warrants when the price
per Class A ordinary share equals or exceeds $10.00” will be adjusted (to the nearest cent) to be equal to 180% of the higher of
the Market Value and the Newly Issued Price, and the $10.00 per share redemption trigger price described below under “Description
of Securities — Warrants — Public Shareholders’ and Forward Purchase Warrants — Redemption of warrants when the
price per Class A ordinary share equals or exceeds $10.00” will be adjusted (to the nearest cent) to be equal to the higher of the
Market Value and the Newly Issued Price. This may make it more difficult for us to consummate an initial business combination with a target
business.
The determination of the offering price of
our units and the size of our initial public offering was more arbitrary than the pricing of securities and size of an offering of an
operating company in a particular industry. You may have less assurance, therefore, that the offering price of our units properly reflects
the value of such units than you would have in a typical offering of an operating company.
Prior to our initial public
offering there was no public market for any of our securities. The public offering price of the units and the terms of the warrants were
negotiated between us and the underwriters. In determining the size of our initial public offering, management held customary organizational
meetings with the underwriters, both prior to our inception and thereafter, with respect to the state of capital markets, generally, and
the amount the underwriters believed they reasonably could raise on our behalf. Factors considered in determining the size of our initial
public offering, prices and terms of the units, including the Class A ordinary shares and warrants underlying the units, included:
| ● | the history and prospects of companies whose principal business is the acquisition of other companies; |
| ● | prior offerings of those companies; |
| ● | our prospects for acquiring an operating business at attractive values; |
| ● | a review of debt-to-equity ratios in leveraged transactions; |
| ● | an assessment of our Management and their experience in identifying operating companies; |
| ● | general conditions of the securities markets at the time of our initial public offering; and |
| ● | other factors as were deemed relevant. |
Although these factors were
considered, the determination of our initial offering price was more arbitrary than the pricing of securities of an operating company
in a particular industry since we have no historical operations or financial results.
A market for our securities may not develop,
which would adversely affect the liquidity and price of our securities.
The price of our securities
may vary significantly due to one or more potential business combinations and general market or economic conditions. Furthermore, an active
trading market for our securities may never develop or, if developed, it may not be sustained. You may be unable to sell your securities
unless a market can be established and sustained.
Because
we must furnish our shareholders with target business financial statements, we may lose the ability to complete an otherwise advantageous
initial business combination with some prospective target businesses.
The
federal proxy rules require that a proxy statement with respect to a vote on a business combination meeting certain financial significance
tests include historical and/or pro forma financial statement disclosure in periodic reports. We will include the same financial statements
disclosure in connection with our tender offer documents, whether or not they are required under the tender offer rules. These financial
statements may be required to be prepared in accordance with, or be reconciled to, accounting principles generally accepted in the United
States of America, or GAAP, or international financial reporting standards as issued by the International Accounting Standards Board,
or IFRS, depending on the circumstances and the historical financial statements may be required to be audited in accordance with the
standards of the Public Company Accounting Oversight Board (United States), or PCAOB. These financial statement requirements may limit
the pool of potential target businesses we may acquire because some targets may be unable to provide such statements in time for us to
disclose such statements in accordance with federal proxy rules and complete our initial business combination within the prescribed time
frame.
We
are an emerging growth company and a smaller reporting company within the meaning of the Securities Act, and if we take advantage of
certain exemptions from disclosure requirements available to “emerging growth companies” or “smaller reporting companies,”
this could make our securities less attractive to investors and may make it more difficult to compare our performance with other public
companies.
We
are an “emerging growth company” within the meaning of the Securities Act, as modified by the JOBS Act, and we may take advantage
of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging
growth companies” including, but not limited to, not being required to comply with the auditor attestation requirements of Section
404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements,
and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any
golden parachute payments not previously approved. As a result, our shareholders may not have access to certain information they may
deem important. We could be an emerging growth company for up to five years, although circumstances could cause us to lose that status
earlier, including if the market value of our Class A ordinary shares held by non-affiliates exceeds $700 million as of any June 30 before
that time, in which case we would no longer be an emerging growth company as of the following December 31. We cannot predict whether
investors will find our securities less attractive because we will rely on these exemptions. If some investors find our securities less
attractive as a result of our reliance on these exemptions, the trading prices of our securities may be lower than they otherwise would
be, there may be a less active trading market for our securities and the trading prices of our securities may be more volatile.
Further,
Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting
standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do
not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting
standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements
that apply to non-emerging growth companies but any such an election to opt out is irrevocable. We have elected not to opt out of such
extended transition period which means that when a standard is issued or revised and it has different application dates for public or
private companies, we, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new
or revised standard. This may make comparison of our financial statements with another public company which is neither an emerging growth
company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of
the potential differences in accounting standards used.
Additionally,
we are a “smaller reporting company” as defined in Item 10(f)(1) of Regulation S-K. Smaller reporting companies may take
advantage of certain reduced disclosure obligations, including, among other things, providing only two years of audited financial statements.
We will remain a smaller reporting company until the last day of the fiscal year in which (1) the market value of our Ordinary Shares
held by non-affiliates exceeds $250 million as of the prior June 30, or (2) our annual revenues exceeded $100 million during such completed
fiscal year and the market value of our Ordinary Shares held by non-affiliates exceeds $700 million as of the prior June 30. To the extent
we take advantage of such reduced disclosure obligations, it may also make comparison of our financial statements with other public companies
difficult or impossible.
Compliance
obligations under the Sarbanes-Oxley Act may make it more difficult for us to effectuate a business combination, require substantial
financial and management resources, and increase the time and costs of completing an acquisition.
Section 404 of the Sarbanes-Oxley
Act requires that we evaluate and report on our system of internal controls beginning with this Annual Report on Form 10-K for the fiscal
year ended December 31, 2021. Only in the event we are deemed to be a large accelerated filer or an accelerated filer and no longer qualify
as an emerging growth company, will we be required to comply with the independent registered public accounting firm attestation requirement
on our internal control over financial reporting. The fact that we are a blank check company makes compliance with the requirements of
the Sarbanes-Oxley Act particularly burdensome on us as compared to other public companies because a target business with which we seek
to complete our initial business combination may not be in compliance with the provisions of the Sarbanes-Oxley Act regarding adequacy
of its internal controls. The development of the internal control of any such entity to achieve compliance with the Sarbanes-Oxley Act
may increase the time and costs necessary to complete any such acquisition.
Because
we are incorporated under the laws of the Cayman Islands, you may face difficulties in protecting your interests, and your ability to
protect your rights through the U.S. federal courts may be limited.
We
are an exempted company incorporated under the laws of the Cayman Islands. As a result, it may be difficult for investors to effect service
of process within the United States upon our directors or executive officers, or enforce judgments obtained in the United States courts
against our directors or officers.
Our
corporate affairs are governed by our Amended and Restated Memorandum and Articles of Association, the Companies Law (as the same may
be supplemented or amended from time to time) and the common law of the Cayman Islands. We are also subject to the federal securities
laws of the United States. The rights of shareholders to take action against the directors, actions by minority shareholders and the
fiduciary responsibilities of our directors to us under Cayman Islands law are to a large extent governed by the common law of the Cayman
Islands. The common law of the Cayman Islands is derived in part from comparatively limited judicial precedent in the Cayman Islands
as well as from English common law, the decisions of whose courts are of persuasive authority, but are not binding on a court in the
Cayman Islands. The rights of our shareholders and the fiduciary responsibilities of our directors under Cayman Islands law are different
from what they would be under statutes or judicial precedent in some jurisdictions in the United States. In particular, the Cayman Islands
has a different body of securities laws as compared to the United States, and certain states, such as Delaware, may have more fully developed
and judicially interpreted bodies of corporate law. In addition, Cayman Islands companies may not have standing to initiate a shareholders
derivative action in a Federal court of the United States.
We
have been advised by our Cayman Islands legal counsel that the courts of the Cayman Islands are unlikely (i) to recognize or enforce
against us judgments of courts of the United States predicated upon the civil liability provisions of the federal securities laws of
the United States or any state; and (ii) in original actions brought in the Cayman Islands, to impose liabilities against us predicated
upon the civil liability provisions of the federal securities laws of the United States or any state, so far as the liabilities imposed
by those provisions are penal in nature. In those circumstances, although there is no statutory enforcement in the Cayman Islands of
judgments obtained in the United States, the courts of the Cayman Islands will recognize and enforce a foreign money judgment of a foreign
court of competent jurisdiction without retrial on the merits based on the principle that a judgment of a competent foreign court imposes
upon the judgment debtor an obligation to pay the sum for which judgment has been given provided certain conditions are met. For a foreign
judgment to be enforced in the Cayman Islands, such judgment must be final and conclusive and for a liquidated sum, and must not be in
respect of taxes or a fine or penalty, inconsistent with a Cayman Islands judgment in respect of the same matter, impeachable on the
grounds of fraud or obtained in a manner, or be of a kind the enforcement of which is, contrary to natural justice or the public policy
of the Cayman Islands (awards of punitive or multiple damages may well be held to be contrary to public policy). A Cayman Islands Court
may stay enforcement proceedings if concurrent proceedings are being brought elsewhere.
As
a result of all of the above, Public Shareholders may have more difficulty in protecting their interests in the face of actions taken
by management, members of the board of directors or controlling shareholders than they would as Public Shareholders of a United States
company.
Provisions
in our Amended and Restated Memorandum and Articles of Association may inhibit a takeover of us, which could limit the price investors
might be willing to pay in the future for our Class A ordinary shares and could entrench management.
Our
Amended and Restated Memorandum and Articles of Association contain provisions that may discourage unsolicited takeover proposals that
shareholders may consider to be in their best interests These provisions include a staggered board of directors and the ability of the
board of directors to designate the terms of and issue new series of preference shares, and the fact that prior to the completion of
our initial business combination only holders of our Class B ordinary shares, which have been issued to our sponsor, are entitled to
vote on the election of directors, which may make more difficult the removal of management and may discourage transactions that otherwise
could involve payment of a premium over prevailing market prices for our securities.
Cyber
incidents or attacks directed at us could result in information theft, data corruption, operational disruption and/or financial loss.
We
depend on digital technologies, including information systems, infrastructure and cloud applications and services, including those of
third parties with which we may deal. Sophisticated and deliberate attacks on, or security breaches in, our systems or infrastructure,
or the systems or infrastructure of third parties or the cloud, could lead to corruption or misappropriation of our assets, proprietary
information and sensitive or confidential data. As an early stage company without significant investments in data security protection,
we may not be sufficiently protected against such occurrences. We may not have sufficient resources to adequately protect against, or
to investigate and remediate any vulnerability to, cyber incidents. It is possible that any of these occurrences, or a combination of
them, could have adverse consequences on our business and lead to financial loss.
Since
only holders of our Founder Shares will have the right to vote on the election of directors, upon the listing of our shares on Nasdaq,
Nasdaq may consider us to be a “controlled company” within the meaning of the rules of Nasdaq and, as a result, we may qualify
for exemptions from certain corporate governance requirements.
After
completion of our initial public offering and prior to any conversion of our Founder Shares pursuant to the terms thereof, only holders
of our Founder Shares will have the right to vote on the election of directors. As a result, Nasdaq may consider us to be a “controlled
company” within the meaning of the corporate governance standards of Nasdaq. Under the corporate governance standards of Nasdaq,
a company of which more than 50% of the voting power is held by an individual, group or another company is a “controlled company”
and may elect not to comply with certain corporate governance requirements, including the requirements that:
| ● | we
have a board that includes a majority of “independent directors,” as defined
under the rules of Nasdaq; |
| ● | we
have a compensation committee of our board that is comprised entirely of independent directors
with a written charter addressing the committee’s purpose and responsibilities; and |
| ● | we
have a nominating and corporate governance committee of our board that is comprised entirely
of independent directors with a written charter addressing the committee’s purpose
and responsibilities. |
We
do not intend to utilize these exemptions and intend to comply with the corporate governance requirements of Nasdaq, subject to applicable
phase-in rules. However, if we determine in the future to utilize some or all of these exemptions, you will not have the same protections
afforded to shareholders of companies that are subject to all of the corporate governance requirements of Nasdaq.
As
the number of special purpose acquisition companies evaluation targets increases, attractive targets may become scarcer and there may
be more competition for attractive targets. This could increase the cost of our initial business combination and could even result in
our inability to find a target or to consummate an initial business combination.
In
recent years, the number of special purpose acquisition companies that have been formed has increased substantially. Many potential targets
for special purpose acquisition companies have already entered into an initial business combination, and there are still many special
purpose acquisition companies seeking targets for their initial business combination, as well as many such companies currently in registration.
In
addition, because there are more special purpose acquisition companies seeking to enter into an initial business combination with available
targets, the competition for available targets with attractive fundamentals or business models may increase, which could cause target
companies to demand improved financial terms. Attractive deals could also become scarcer for other reasons, such as economic or industry
sector downturns, geopolitical tensions including between the U.S. and China and between Russia and Ukraine, or increases in the cost
of additional capital needed to close business combinations or operate targets post-business combination. This could increase the cost
of, delay or otherwise complicate or frustrate our ability to find and consummate an initial business combination, and may result in
our inability to consummate an initial business combination on terms favorable to our investors altogether.
Risks
Associated with Acquiring and Operating a Business in Foreign Countries
If
we pursue a target company with operations or opportunities outside of the United States for our initial business combination, we may
face additional burdens in connection with investigating, agreeing to and completing such initial business combination, and if we effect
such initial business combination, we would be subject to a variety of additional risks that may negatively impact our operations.
If
we pursue a target a company with operations or opportunities outside of the United States for our initial business combination, we would
be subject to risks associated with cross-border business combinations, including in connection with investigating, agreeing to and completing
our initial business combination, conducting due diligence in a foreign jurisdiction, having such transaction approved by any local governments,
regulators or agencies and changes in the purchase price based on fluctuations in foreign exchange rates.
If
we effect our initial business combination with such a company, we would be subject to any special considerations or risks associated
with companies operating in an international setting, including any of the following:
| ● | costs
and difficulties inherent in managing cross-border business operations; |
| ● | rules
and regulations regarding currency redemption; |
| ● | complex
corporate withholding taxes on individuals; |
| ● | laws
governing the manner in which future business combinations may be effected; |
| ● | exchange
listing and/or delisting requirements; |
| ● | tariffs
and trade barriers; |
| ● | regulations
related to customs and import/export matters; |
| ● | local
or regional economic policies and market conditions; |
| ● | unexpected
changes in regulatory requirements; |
| ● | tax
issues, such as tax law changes and variations in tax laws as compared to the United States; |
| ● | currency
fluctuations and exchange controls; |
| ● | challenges
in collecting accounts receivable; |
| ● | cultural
and language differences; |
| ● | underdeveloped
or unpredictable legal or regulatory systems; |
| ● | protection
of intellectual property; |
| ● | social
unrest, crime, strikes, riots and civil disturbances; |
| ● | regime
changes and political upheaval; |
| ● | terrorist
attacks and wars; and |
| ● | deterioration
of political relations with the United States. |
We
may not be able to adequately address these additional risks. If we were unable to do so, we may be unable to complete such initial business
combination, or, if we complete such combination, our operations might suffer, either of which may adversely impact our business, financial
condition and results of operations.
If
our Management following our initial business combination is unfamiliar with United States securities laws, they may have to expend time
and resources becoming familiar with such laws, which could lead to various regulatory issues.
Following
our initial business combination, our Management may resign from their positions as officers or directors of the company and the management
of the target business at the time of the business combination will remain in place. Management of the target business may not be familiar
with United States securities laws. If new management is unfamiliar with United States securities laws, they may have to expend time
and resources becoming familiar with such laws. This could be expensive and time-consuming and could lead to various regulatory issues
which may adversely affect our operations.
After
our initial business combination, substantially all of our assets may be located in a foreign country and substantially all of our revenue
will be derived from our operations in such country. Accordingly, our results of operations and prospects will be subject, to a significant
extent, to the economic, political and legal policies, developments and conditions in the country in which we operate.
The
economic, political and social conditions, as well as government policies, of the country in which our operations are located could affect
our business. Economic growth could be uneven, both geographically and among various sectors of the economy and such growth may not be
sustained in the future. If in the future such country’s economy experiences a downturn or grows at a slower rate than expected,
there may be less demand for spending in certain industries. A decrease in demand for spending in certain industries could materially
and adversely affect our ability to find an attractive target business with which to consummate our initial business combination and
if we effect our initial business combination, the ability of that target business to become profitable.
Exchange
rate fluctuations and currency policies may cause a target business’ ability to succeed in the international markets to be diminished.
In
the event we acquire a non-U.S. target, all revenues and income would likely be received in a foreign currency, and the dollar equivalent
of our net assets and distributions, if any, could be adversely affected by reductions in the value of the local currency. The value
of the currencies in our target regions fluctuate and are affected by, among other things, changes in political and economic conditions.
Any change in the relative value of such currency against our reporting currency may affect the attractiveness of any target business
or, following consummation of our initial business combination, our financial condition and results of operations. Additionally, if a
currency appreciates in value against the dollar prior to the consummation of our initial business combination, the cost of a target
business as measured in dollars will increase, which may make it less likely that we are able to consummate such transaction.
We
may reincorporate in another jurisdiction in connection with our initial business combination, and the laws of such jurisdiction may
govern some or all of our future material agreements and we may not be able to enforce our legal rights.
In
connection with our initial business combination, we may relocate the home jurisdiction of our business from the Cayman Islands to another
jurisdiction. If we determine to do this, the laws of such jurisdiction may govern some or all of our future material agreements. The
system of laws and the enforcement of existing laws in such jurisdiction may not be as certain in implementation and interpretation as
in the United States. The inability to enforce or obtain a remedy under any of our future agreements could result in a significant loss
of business, business opportunities or capital.
We
have identified a material weakness in our internal control over financial reporting. This material weakness could continue to adversely
affect our ability to report our results of operations and financial condition accurately and in a timely manner.
Our
management is responsible for establishing and maintaining adequate internal control over financial reporting designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with GAAP. Our management is likewise required, on a quarterly basis, to evaluate the effectiveness of our internal controls and to disclose
any changes and material weaknesses identified through such evaluation in those internal controls. A material weakness is a deficiency,
or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material
misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.
Based upon their evaluation,
our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under
the Exchange Act) were not effective as of December 31, 2021, because of a material weakness in our internal control over financial
reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that
there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not
be prevented or detected on a timely basis. Specifically, the Company’s management has concluded that our control around the interpretation
and accounting for certain complex financial instruments was not effectively designed or maintained. This material weakness resulted in
the misstatement of the Company’s audited balance sheet as of January 20, 2021 and its interim financial statements and notes as
reported in its SEC filings for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021.
Any
failure to maintain effective internal control over financial reporting or disclosure controls and procedures could adversely impact
our ability to report our financial position and results from operations on a timely and accurate basis. If our financial statements
are not accurate, investors may not have a complete understanding of our operations. Likewise, if our financial statements are not filed
on a timely basis, we could be subject to sanctions or investigations by the stock exchange on which our ordinary shares are listed,
the SEC or other regulatory authorities. In either case, there could result a material adverse effect on our business. Failure to timely
file will cause us to be ineligible to utilize short form registration statements on Form S-3 or Form S-4, which may impair our ability
to obtain capital in a timely fashion to execute our business strategies or issue shares to effect an acquisition. Ineffective internal
controls could also cause investors to lose confidence in our reported financial information, which could have a negative effect on the
trading price of our stock.
We
can give no assurance that the measures we have taken and plan to take in the future will remediate the material weakness identified
or that any additional material weaknesses or restatements of financial results will not arise in the future due to a failure to implement
and maintain adequate internal control over financial reporting or circumvention of these controls. In addition, even if we are successful
in strengthening our controls and procedures, in the future those controls and procedures may not be adequate to prevent or identify
irregularities or errors or to facilitate the fair presentation of our financial statements.
Our management concluded
that there is substantial doubt about our ability to continue as a “going concern.”
As of December 31, 2021,
we had approximately $442,000 in operating bank account and a working capital deficit of approximately $201,000. The company may need
to raise additional capital through loans or additional investments from its Sponsor, an affiliate of the Sponsor, or its officers or
directors. The company’s officers, directors and Sponsor, or their affiliates, may, but are not obligated to, loan the company
funds, from time to time or at any time, in whatever amount they deem reasonable in their sole discretion, to meet the company’s
working capital needs. Accordingly, the company may not be able to obtain additional financing. If the company is unable to raise additional
capital, it may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to,
curtailing operations, suspending the pursuit of a potential transaction, reducing overhead expenses, and extending the terms and due
dates of certain accrued expenses and other liabilities. The company cannot provide any assurance that new financing will be available
to it on commercially acceptable terms, if at all. In connection with the company’s assessment of going concern considerations
in accordance with FASB accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about
an Entity’s Ability to Continue as a Going Concern,” management has determined that the working capital deficit, as wells
as the mandatory liquidation and subsequent dissolution raises substantial doubt about the company’s ability to continue as a going
concern. No adjustments have been made to the carrying amounts of assets or liabilities should the company be required to liquidate after
January 20, 2023. The financial statements do not include any adjustment that might be necessary if the company is unable to continue
as a going concern.