ARYD ARYA Sciences Acquisition Corporation IV

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement or a Registrant.

 

As disclosed in the definitive proxy statement filed by ARYA Sciences Acquisition Corp IV, a Cayman Islands exempted Company (“ARYA”) with the U.S. Securities and Exchange Commission (the “SEC”) on February 10, 2023 (the “Extension Proxy Statement”), relating to the extraordinary general meeting of shareholders of ARYA (the “Extension Meeting”), ARYA Sciences Holdings IV, a Cayman Islands exempted company (the “Sponsor”), agreed that if the Extension Amendment Proposal (as defined below) was approved, it or one or more of its affiliates, members or third-party designees (the “Lender”) will contribute to ARYA as a loan $420,000 to be deposited into the trust account established in connection with ARYA’s initial public offering (the “Trust Account”). In addition, in the event ARYA does not consummate an initial business combination (a “Business Combination”) by the Articles Extension Date (as defined below), the Lender will contribute to the Company as a loan up to $1,260,000 in nine equal installments to be deposited into the Trust Account for each of the nine one-month optional extensions following the Articles Extension Date.

 

On February 28, 2023, the shareholders of ARYA approved the Extension Amendment Proposal  at the Extension Meeting (as described in Item 5.07 of this Current Report on Form 8-K). Accordingly, on February 28, 2023, ARYA issued an unsecured convertible promissory note in the principal amount of up to $1,680,000 (the “Note”) to the Sponsor. The Note does not bear interest and matures upon closing of ARYA’s initial  Business Combination. Up to $1,380,000 of the amounts loaned under the Note will be convertible at the option of the Sponsor into Class A ordinary shares, par value $0.0001 per share, of ARYA (“Working Capital Shares”), at a conversion price equal to $10.00 per Working Capital Share. The terms of the Working Capital Shares will be identical to those of the private placement shares that were issued to the Sponsor in connection with ARYA’s initial public offering. In the event that ARYA does not consummate a Business Combination and if the Note is not converted into Working Capital Shares, the Note will be repaid only from funds held outside of the Trust Account or will be forfeited, eliminated or otherwise forgiven. The maturity date of the Note may be accelerated upon the occurrence of an Event of Default (as defined under the Note). Any Working Capital Shares issuable upon conversion of the Note will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) and will be issued in reliance on the exemption from registration requirements thereof provided by Section 4(a)(2) of the Securities Act. As of February 28, 2023, $420,000 were drawn under the Note and will be deposited in the Trust Account in connection with the Articles Amendment (as defined below).

 

The foregoing description of the Note does not purport to be complete and is qualified in its entirety by the terms and conditions of thereof. A copy of the Note is attached hereto as Exhibit 10.1 and incorporated herein by reference.