0001144204-15-064619.txt : 20151112 0001144204-15-064619.hdr.sgml : 20151112 20151112150111 ACCESSION NUMBER: 0001144204-15-064619 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20150930 FILED AS OF DATE: 20151112 DATE AS OF CHANGE: 20151112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WL Ross Holding Corp. CENTRAL INDEX KEY: 0001604416 STANDARD INDUSTRIAL CLASSIFICATION: BLANK CHECKS [6770] IRS NUMBER: 465188282 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-36477 FILM NUMBER: 151223767 BUSINESS ADDRESS: STREET 1: 1166 AVENUE OF THE AMERICAS, 25TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10036 BUSINESS PHONE: (212) 826-1100 MAIL ADDRESS: STREET 1: 1166 AVENUE OF THE AMERICAS, 25TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10036 10-Q 1 v423615_10q.htm FORM 10-Q

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

x    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2015

 

¨    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from __________ to __________

 

Commission File Number: 001-36149

 

WL ROSS HOLDING CORP.

(Exact name of registrant as specified in its charter)

 

Delaware   46-5188282
(State or other jurisdiction of incorporation   (I.R.S. Employer  Identification Number)
or organization)    
     
1166 Avenue of the Americas    
New York, New York   10036
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code: (212) 826-1100

 

Not Applicable

(Former name or former address, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x   No ¨

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x   No ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer ¨   Accelerated filer ¨
Non-accelerated filer   x   Smaller reporting company ¨
(Do not check if a smaller reporting company)    

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes x  No ¨

 

As of November 12, 2015, there were 62,531,250 shares of Company’s common stock issued and outstanding.

 

 

 

 

WL ROSS HOLDING CORP.

TABLE OF CONTENTS

 

PART I.  FINANCIAL INFORMATION   F-1
ITEM 1. FINANCIAL STATEMENTS   F-1 - F-14
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS   1
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK   4
ITEM 4. CONTROLS AND PROCEDURES   4
     
PART II.  OTHER INFORMATION   5
ITEM 1. LEGAL PROCEEDINGS   5
ITEM 1A. RISK FACTORS   5
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS   5
ITEM 3. DEFAULTS UPON SENIOR SECURITIES   6
ITEM 4. MINE SAFETY DISCLOSURES   6
ITEM 5. OTHER INFORMATION   6
ITEM 6. EXHIBITS   6

 

 

 

 

PART 1 – FINANCIAL INFORMATION

 

ITEM 1 – FINANCIAL STATEMENTS

 

WL ROSS HOLDING CORP.

CONDENSED BALANCE SHEETS

 

   September 30, 2015   December 31, 2014 
  (unaudited)    
ASSETS:        
Current assets:          
Cash  $229,666   $801,415 
Prepaid expenses   87,755    152,628 
Total current assets   317,421    954,043 
Noncurrent assets:          
Investments and cash held in trust account   500,513,100    500,315,646 
           
Total assets  $500,830,521   $501,269,689 
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
Current liabilities:          
Accrued expenses  $390,069   $856,821 
Sponsor convertible note   306,863    - 
State franchise tax accrual   51,206    139,554 
Total current liabilities   748,138    996,375 
           
Other liabilities:          
Deferred underwriting compensation   18,309,150    18,309,150 
Total other liabilities   18,309,150    18,309,150 
           
Total liabilities   19,057,288    19,305,525 
           
Common stock subject to possible redemption; 47,677,323 and 47,696,416 shares at September 30, 2015 and December 31, 2014, respectively (at redemption value of $10.00 per share)   476,773,230    476,964,160 
           
Stockholders' equity: Preferred stock, $0.0001 par value; 1,000,000 shares authorized, none issued or outstanding   -    - 
Common stock, $0.0001 par value; 200,000,000 shares authorized, 14,853,927 and 14,834,834 shares issued and outstanding (excluding 47,677,323 and 47,696,416 subject to possible redemption) at September 30, 2015 and December 31, 2014, respectively   1,485    1,483 
Additional paid-in-capital   6,226,535    6,035,607 
Accumulated deficit   (1,228,017)   (1,037,086)
Total stockholders' equity   5,000,003    5,000,004 
Total liabilities and stockholders' equity  $500,830,521   $501,269,689 

 

See accompanying notes to condensed financial statements.

 

 F-1

 

 

WL ROSS HOLDING CORP.

CONDENSED STATEMENTS OF OPERATIONS

(unaudited)

 

   For the Three
Months ended
September 30,
2015
   For the Three
Months ended
September 30,
2014
   For the Nine
Months ended
September 30,
2015
   For the Period from
March 24, 2014
(inception) to
September 30, 2014
 
                 
Revenue  $-   $-   $-   $- 
Professional fees and other expenses   (78,013)   (591,147)   (330,259)   (650,874)
State franchise taxes, other than income tax   (45,000)   (45,370)   (135,000)   (93,700)
Interest on Sponsor convertible note   (3,781)   -    (6,863)   - 
Loss from operations   (126,794)   (636,517)   (472,122)   (744,574)
Other income - Interest income   97,743    26,830    281,191    26,830 
Net loss attributable to common shares  $(29,051)  $(609,687)  $(190,931)  $(717,744)
                     
Weighted average common shares outstanding, basic and diluted (excluding shares subject to possible redemption)   14,851,054    14,742,594    14,844,521    14,530,251 
                     
Net loss per common share:  $(0.00)  $(0.04)  $(0.01)  $(0.05)
Basic and diluted                    

 

See accompanying notes to condensed financial statements.

 

 F-2

 

 

WL ROSS HOLDING CORP.

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

For the Nine Months Ended September 30, 2015 and for the period from March 24, 2014 (inception) to September 30, 2014

(unaudited)

 

   Common Stock   Additional         
           Paid-in   Accumulated   Stockholders' 
   Shares   Amount   Capital   Deficit   Equity 
Balances, January 1, 2015   14,834,834   $1,483   $6,035,607   $(1,037,086)  $5,000,004 
                          
Change in shares subject to possible redemption   19,093    2    190,928        190,930 
                          
Net loss for the period ended September 30, 2015               (190,931)   (190,931)
Balances, September 30, 2015   14,853,927   $1,485   $6,226,535   $(1,228,017)  $5,000,003 

 

   Common Stock   Additional         
           Paid-in   Accumulated   Stockholders' 
   Shares   Amount   Capital   Deficit   Equity 
Sale of common stock to Sponsor on March 24, 2014 at $0.002 per share   14,375,000   $1,437   $23,563   $   $25,000 
                          
Forfeiture of common stock by Sponsor on June 5, 2014   (1,868,750)   (187)   187         
                          
Sale of common stock on June 5, 2014 at $10.00 per share   50,025,000    5,003    500,244,997        500,250,000 
                          
Sale of 22,400,000 of Private Placement Warrants on June 5, 2014 at $0.50 per warrant           11,200,000        11,200,000 
                          
Underwriters compensation and offering expenses           (28,473,750)       (28,473,750)
                          
Common stock subject to possible redemption; 47,800,124 (at redemption value of $10.00 per share)   (47,800,124)   (4,780)   (477,996,460)       (478,001,240)
                        - 
Change in proceeds subject to possible redemption to 47,728,350 shares at redemption value   71,774    7    717,733        717,740 
                          
Net loss attributable to common shares               (717,744)   (717,744)
Balances, September 30, 2014   14,802,900   $1,480   $5,716,270   $(717,744)  $5,000,006 

 

See accompanying notes to condensed financial statements.

 

 F-3

 

 

WL ROSS HOLDING CORP.

CONDENSED STATEMENTS OF CASH FLOWS

(unaudited)

 

   For the Nine Months
Ended September 30,
2015
   For the Period from
March 24, 2014
(inception) to
September 30, 2014
 
Cash flows from operating activities:          
Net loss  $(190,931)  $(717,744)
Adjustments to reconcile net loss to net cash used in operations:          
Decrease/ (Increase) in prepaid expenses   64,873    (182,429)
Increase/ (Decrease) in accrued state franchise tax   (88,348)   93,700 
Increase/ (Decrease) in accrued expenses   (466,752)   574,944 
Accrued interest on Sponsor convertible note   6,863    - 
Amortization of original issue discounts   (138,541)   (25,409)
Interest on investments   (142,650)   (1,421)
Net cash used by operating activities   (955,486)   (258,359)
           
Cash flows from investing activities:          
Withdrawal of Trust Account funds for payment of Delaware franchise tax   83,737    - 
Proceeds deposited into trust account for investments   -    (500,250,000)
Net cash provided by / (used in) investing activities   83,737    (500,250,000)
           
Cash flows from financing activities:          
Proceeds from sale of common stock to Sponsor   -    25,000 
Proceeds from sale of common stock through public offering   -    500,250,000 
Proceeds from sponsor to purchase private placement warrants   -    11,200,000 
Proceeds from note payable - related party   -    350,000 
Payment of underwriting discounts   -    (9,204,600)
Payment of accrued formation and offering costs   -    (458,522)
Payment of note payable - related party   -    (350,000)
Proceeds from unsecured promissory note payable to Sponsor   300,000    - 
Net cash provided by financing activities   300,000    501,811,878 
Increase (decrease) in cash   (571,749)   1,303,519 
Cash at beginning the period   801,415    - 
Cash at end of the period  $229,666   $1,303,519 
           
Supplemental disclosure of non-cash financing activities:          
Deferred underwriting compensation  $-   $18,309,150 
Accrued formation cost and offering cost  $-   $501,478 
           
Supplemental disclosure of cash flow information          
Cash paid for state franchise taxes  $(223,348)  $- 

 

See accompanying notes to condensed financial statements.

 

 F-4

 

 

WL ROSS HOLDING CORP.

NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS

(unaudited)

 

  1. Organization and Business Operations

 

Organization and General

 

WL Ross Holding Corp. (the “Company”) was incorporated in Delaware on March 24, 2014. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). The Company has neither engaged in any operations nor generated any revenue to date. The Company’s management has broad discretion with respect to the Business Combination. The Company’s sponsor is WL Ross Sponsor LLC, a Delaware limited liability company (the “Sponsor”). The Company has selected December 31 as its fiscal year-end.

 

At September 30, 2015, the Company had not commenced any operations. All activity for the period from March 24, 2014 (inception) through September 30, 2015 relates to the Company’s formation, initial public offering (“Public Offering”) described below and efforts directed toward locating a suitable Business Combination. The Company will not generate any operating revenues until after the completion of its Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income on cash and cash equivalents from the proceeds derived from the Public Offering.

 

Financing

 

The Company intends to finance a Business Combination with the proceeds from a $500,250,000 Public Offering (Note 3) and a $11,200,000 private placement (Note 4).

 

Upon the closing of the Public Offering and the private placement, $500,250,000 was placed in a trust account with the Continental Stock Transfer & Trust Company (the “Trust Account”) acting as Trustee.

 

Trust Account

 

The Trust Account can be invested only in U.S. government treasury bills with a maturity of one hundred and eighty (180) days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act of 1940 which invest only in direct U.S. government obligations. As of September 30, 2015 and December 31, 2014 the Trust Account consisted of U.S. government treasury bills and cash.

 

The Company’s amended and restated certificate of incorporation provides that, other than the withdrawal of interest to pay taxes, if any, none of the funds held in trust will be released until the earlier of: (i) the completion of the Business Combination; or (ii) the redemption of 100% of the shares of common stock included in the units being sold in the Public Offering if the Company is unable to complete a Business Combination within 24 months from the closing of the Public Offering (June 11, 2016), subject to the requirements of law and stock exchange rules.

 

Business Combination

 

The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Public Offering, although substantially all of the net proceeds of the Public Offering are intended to be generally applied toward consummating a Business Combination with (or acquisition of) a Target Business. As used herein, “Target Business” must be with one or more target businesses that together have a fair market value equal to at least 80% of the balance in the trust account (less any deferred underwriting commissions and taxes payable on interest earned) at the time of the Company signing a definitive agreement in connection with the Business Combination. Furthermore, there is no assurance that the Company will be able to successfully effect a Business Combination.

 

 F-5

 

 

The Company, after signing a definitive agreement for a Business Combination, will either (i) seek stockholder approval of the Business Combination at a meeting called for such purpose in connection with which stockholders may seek to redeem their shares, regardless of whether they vote for or against the Business Combination, for cash equal to their pro rata share of the aggregate amount then on deposit in the Trust Account as of two business days prior to the consummation of the Business Combination, including interest but less taxes payable, or (ii) provide stockholders with the opportunity to sell their shares to the Company by means of a tender offer (and thereby avoid the need for a stockholder vote) for an amount in cash equal to their pro rata share of the aggregate amount then on deposit in the Trust Account as of two business days prior to commencement of the tender offer, including interest but less taxes payable. The decision as to whether the Company will seek stockholder approval of the Business Combination or will allow stockholders to sell their shares in a tender offer will be made by the Company, solely in its 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 the Company to seek stockholder approval, unless a vote is required by NASDAQ rules. If the Company seeks stockholder approval, it will complete its Business Combination only if a majority of the outstanding shares of common stock voted are voted in favor of the Business Combination. However, in no event will the Company redeem or repurchase its public shares in an amount that would cause its net tangible assets to be less than $5,000,001. In such case, the Company would not proceed with the redemption or repurchase of its public shares and the related Business Combination, and instead may search for an alternate Business Combination.

 

If the Company holds a stockholder vote or there is a tender offer for shares in connection with a Business Combination, public stockholders will have the opportunity to have public shares redeemed or repurchased for an amount in cash equal to its pro rata share of the aggregate amount then on deposit in the Trust Account as of two business days prior to the consummation of the Business Combination or commencement of the tender offer, respectively, including interest but less taxes payable. As a result, such shares have been classified as common stock subject to possible redemption, in accordance with ASC 480, “Distinguishing Liabilities from Equity.”

 

The Company will only have 24 months from the closing date of the Public Offering (June 11, 2016) to complete its Business Combination. If the Company does not complete a Business Combination within this period of time, it shall (i) cease all operations except for the purposes of winding up; (ii) as promptly as reasonably possible, but not more than ten business days thereafter, redeem the public shares of common stock for a per share pro rata portion of the Trust Account, including interest, but less taxes payable (less up to $50,000 of such net interest to pay dissolution expenses) and (iii) as promptly as possible following such redemption, dissolve and liquidate the balance of the Company’s net assets to its remaining stockholders, as part of its plan of dissolution and liquidation. The Sponsor has entered into letter agreements with the Company, pursuant to which it has waived its rights to participate in any redemption with respect to its initial shares; however, if the Sponsor or any of the Company’s officers, directors or affiliates acquire shares of common stock in or after the Public Offering, they will be entitled to a pro rata share of the Trust Account upon the Company’s redemption or liquidation in the event the Company does not complete a Business Combination within the required time period.

 

In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be less than the initial public offering price per unit in the Public Offering.

 

Emerging Growth Company

 

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 election to opt out is irrevocable. The Company has 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, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard.

 

 F-6

 

 

  2. Significant Accounting Policies

 

Basis of Presentation

 

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the accounting and disclosure rules and regulations of the Securities and Exchange Commission (“SEC”), and reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position as of September 30, 2015 and the results of operations and cash flows for the periods presented. Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. The accompanying unaudited interim financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2015.

 

Development Stage Company

 

At September 30, 2015, the Company has not commenced any operations nor generated revenue. All activity through September 30, 2015 relates to the Company formation and the Public Offering. Following the Public Offering, the Company will not generate any operating revenues until after the completion of a Business Combination, at earliest. The Company will generate non-operating income in the form of interest income on the designated Trust Account after the Public Offering.

 

Loss Per Common Share

 

Net loss per common share is computed by dividing net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period, plus to the extent dilutive the incremental number of shares of common stock to settle warrants, as calculated using the treasury stock method. At September 30, 2015 and December 31, 2014, the Company had outstanding warrants to purchase 36,212,500 shares of common stock and notes that could convert into warrants and potentially be exercised or converted into common stock. For all periods presented, the weighted average of these shares was excluded from the calculation of diluted loss per share of common stock because their inclusion would have been anti-dilutive. As a result, dilutive loss per share of common stock is equal to basic loss per share of common stock.

 

Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which at times, may exceed the Federal depository insurance coverage of $250,000. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

 

Financial Instruments

 

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented

in the balance sheet.

 

Offering Costs

 

The Company complies with the requirements of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (SAB) Topic 5A – “Expenses of Offering.” Offering costs consist principally of professional and registration fees incurred through the balance sheet date that are related to the Public Offering and were charged to stockholders’ equity upon the completion of the Public Offering. Accordingly, at September 30, 2015 and December 31, 2014, offering costs totaling approximately $28,473,750 (including $27,513,750 in underwriters’ fees) have been charged to stockholders’ equity.

 

Redeemable Common Stock

 

As discussed in Note 3, all of the 50,025,000 common shares sold as part of the units in the Public Offering contain a redemption feature which allows for the redemption of common shares under the Company’s Liquidation or Tender Offer/Stockholder Approval provisions. In accordance with ASC 480, redemption provisions not solely within the control of the Company require the security to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of all of the entity’s equity instruments, are excluded from the provisions of ASC 480. Although the Company did not specify a maximum redemption threshold, its charter provides that in no event will it redeem its public shares in an amount that would cause its net tangible assets (stockholders’ equity) to be less than $5,000,001.

 

 F-7

 

 

The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of the security to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable common stock are affected by charges against accumulated deficit.

 

Accordingly, at September 30, 2015 and December 31, 2014, 47,677,323 and 47,696,416, respectively, of the 50,025,000 public shares were classified outside of permanent equity at its redemption value.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Income Taxes

 

The Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

 

ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those liabilities or benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax liabilities as income tax expense. No amounts were accrued for the payment of interest and penalties at September 30, 2015 and December 31, 2014. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.

 

The Company may be subject to potential examination by U.S. federal, states or foreign jurisdiction authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income amount various tax jurisdictions and compliance with U.S. federal, states or foreign tax laws. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.

 

The Company is incorporated in the State of Delaware and is required to pay franchise taxes to the State of Delaware on an annual basis.

 

 F-8

 

 

Recent Accounting Pronouncements

 

The Company adopted FASB Accounting Standards Update No. 2014-10 (ASU No. 2014-10) to Topic 915, which eliminated certain financial reporting requirements of companies previously identified as “Development Stage Entities” (Topic 915). The amendments in ASU No. 2014-10 simplify the accounting guidance by removing all incremental financial reporting requirements for development stage entities. The amendments also reduce data maintenance and, for those entities subject to audit, audit costs, by eliminating the requirement for development stage entities to present inception-to-date information in the statements of operations, cash flows, and stockholders’ equity.

 

The Company adopted FASB Accounting Standards Update No. 2014-15, which provided guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued and to provide related footnote disclosures.

 

As of September 30, 2015, the Company’s condensed interim financial statements have been presented to conform with the reporting and disclosure requirements of the above standards.

 

Going Concern Consideration

 

If the Company does not complete an initial Business Combination by June 11, 2016, the Company 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 100% of the common stock sold as part of the units in the Public Offering, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest (which interest shall be net of franchise and income taxes payable and less up to $50,000 of such net interest which may be distributed to the Company to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. This mandatory liquidation and subsequent dissolution requirement raises substantial doubt about the Company’s ability to continue as a going concern.

 

In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be less than the initial public offering price per unit in the Public Offering. In addition if the Company fails to complete its Business Combination by June 11, 2016, there will be no redemption rights or liquidating distributions with respect to our warrants, which will expire worthless.

 

In addition, at September 30, 2015, the Company had current liabilities of $748,138 and negative working capital of $430,717 largely due to amounts owed to professionals, consultants, advisors and others who are working on seeking a Business Combination described in Note 1. Such work is continuing after September 30, 2015 and amounts are continuing to accrue. The Company expects to pay many of these costs upon consummation of the Business Combination. If the Business Combination were not consummated by June 11, 2016, the Company would (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 (which interest shall be net of taxes payable, and less up to $50,000 of interest to pay dissolution expenses) divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be less than the initial public offering price per unit in the Public Offering. Although the Company’s plan is to complete the Business Combination, there is no assurance that the Company’s plan can be accomplished. The uncertainty regarding the lack of resources to pay the above noted liabilities 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 unable to continue operations.

 

 F-9

 

 

  3. Public Offering

 

Public Units

 

On June 11, 2014, the Company sold 50,025,000 at a price of $10.00 per unit (the “Public Units”) in the Public Offering. Each Unit consists of one share of the Company’s common stock, $0.0001 par value per share and one redeemable common stock purchase warrant (the “Warrants”).

 

Under the terms of the warrant agreement, the Company has agreed to use its best efforts to file a new registration statement under the Securities Act following the completion of the Business Combination. Each Warrant entitles the holder to purchase one-half of one share of common stock at a price of $5.75. No fractional shares will be issued upon exercise of the warrants. If, upon exercise of the warrants, a holder would be entitled to receive a fractional interest in a share, the Company will, upon exercise, round down to the nearest whole number the number of shares of common stock to be issued to the warrant holder. Each Warrant will become exercisable on the later of 30 days after the completion of the Company’s Business Combination or 12 months from the closing of the Public Offering and will expire five years after the completion of the Company’s Business Combination or earlier upon redemption or liquidation. However, if the Company does not complete its Business Combination on or prior to the 24-month period allotted to complete the Business Combination, the Warrants will expire at the end of such period. If the Company is unable to deliver registered shares of common stock to the holder upon exercise of Warrants issued in connection with the 50,025,000 Public Units during the exercise period, there will be no net cash settlement of these Warrants and the Warrants will expire worthless, unless they may be exercised on a cashless basis in the circumstances described in the warrant agreement. Once the warrants become exercisable, the Company may redeem the outstanding warrants in whole and not in part at a price of $0.01 per warrant upon a minimum of 30 days’ prior written notice of redemption, only in the event that the last sale price of the Company’s shares of common stock equals or exceeds $24.00 per share for any 20 trading days within the 30-trading day period ending on the third trading day before the Company sends the notice of redemption to the warrant holders.

 

The Company paid an upfront underwriting discount of approximately 1.84% ($9,204,600) of the per unit offering price to the underwriters at the closing of the Public Offering, with an additional fee (the “Deferred Discount”) of 3.66% ($18,309,150) of the gross offering proceeds payable upon the Company’s completion of a Business Combination. The Deferred Discount will become payable to the underwriters from the amounts held in the Trust Account solely in the event the Company completes its Business Combination. The underwriters are not entitled to any interest accrued on the Deferred Discount.

 

  4. Related Party Transactions

 

Founder Shares

 

In March 2014, the Sponsor purchased 14,375,000 shares of common stock (the “Founder Shares”) for $25,000, or approximately $0.002 per share. The Founder Shares are identical to the common stock included in the Units sold in the Public Offering except that the Founder Shares are subject to certain transfer restrictions, as described in more detail below. Immediately prior to the Public Offering, the Sponsor forfeited 1,868,750 Founder Shares so that the remaining founder shares represent 20.0% of the outstanding shares upon the completion of the Public Offering.

 

The Sponsor has agreed not to transfer, assign or sell any of its Founder Shares until the earlier of (A) one year after the completion of the Business Combination, or earlier if, subsequent to the Business Combination, the last sale price of the Company’s common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the Business Combination or (B) the date on which the Company completes a liquidation, merger, stock exchange or other similar transaction after the Business Combination that results in all of the Company’s stockholders having the right to exchange their shares of common stock for cash, securities or other property (the “Lock Up Period”).

 

 F-10

 

 

 Rights - The Founder Shares are identical to the public shares except that (i) The Founder Shares are subject to certain transfer restrictions, as described above, and (ii) the Sponsor has agreed to waive redemption rights in connection with the Business Combination with respect to the Founders Shares and any public shares they may purchase, and to waive their redemption rights with respect to the Founder Shares if the Company fails to complete a Business Combination within 24 months from the closing of the Public Offering (June 11, 2016).

 

Voting – If the Company seeks stockholder approval of a Business Combination, the Sponsor has agreed to vote its Founder Shares and any public shares purchased during or after the Public Offering in favor of the Business Combination.

 

Redemption – Although the Sponsor and its permitted transferees will waive their redemption rights with respect to the Founder Shares if the Company fails to complete a Business Combination within the prescribed time frame, they will be entitled to redemption rights with respect to any public shares they may own.

 

Prior to the Public Offering, we had granted the Sponsor the option to purchase, simultaneously with the consummation of an initial Business Combination, up to an additional 10,000,000 shares of common stock at a price of $10.00 per share.

 

Private Placement Warrants

 

The Sponsor has purchased from the Company an aggregate of 22,400,000 warrants at a price of $0.50 per warrant (a purchase price of $11,200,000) in a private placement that occurred simultaneously with the completion of the Public Offering (the “Private Placement Warrants”). Each Private Placement Warrant entitles the holder to purchase one-half of one share of common stock at $5.75 per share. The purchase price of the Private Placement Warrants was added to the proceeds from the Public Offering to be held in the Trust Account pending completion of the Business Combination.

 

The Private Placement Warrants (including the common stock issuable upon exercise of the Private Placement Warrants) will not be transferable, assignable or salable until 30 days after the completion of the Business Combination and they will be non-redeemable so long as they are held by the Sponsor or its permitted transferees. If the Private Placement Warrants are held by someone other than the Sponsor or its permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants included in the units being sold in the Public Offering. Otherwise, the Private Placement Warrants have terms and provisions that are identical to those of the Public Warrants sold as part of the units in the Public Offering and have no net cash settlement provisions.

 

If the Company does not complete a Business Combination, then the Private Placement Warrants proceeds will be part of the liquidation distribution to the public stockholders and the Private Placement Warrants will expire worthless.

 

Registration Rights

 

The holders of the Founder Shares and Private Placement Warrants hold registration rights to require the Company to register the sale of any of the securities held by them pursuant to a registration rights agreement. The holders of these securities will be entitled to make up to three demands, excluding short form registration demands, that the Company register such securities for sale under the Securities Act. In addition, these holders will have “piggy-back” registration rights to include their securities in other registration statements filed by the Company. However, the registration rights agreement provides that the Company will not permit any registration statement filed under the Securities Act to become effective until termination of the applicable Lock Up Period. The Company will bear the costs and expenses of filing any such registration statements.

 

 F-11

 

 

Related Party

 

The Sponsor loaned the Company $350,000 in the aggregate by the issuance of unsecured promissory notes (the “Notes”) for $350,000 to cover expenses related to the Public Offering. These Notes were non-interest bearing and payable on the earlier of March 31, 2015 or the completion of the Public Offering. The Notes were repaid in full on June 12, 2014.

 

On March 26, 2015, the Company issued a convertible promissory note (the “Convertible Note”) to the Sponsor that provides for the Sponsor to loan us up to $300,000 for ongoing expenses. The Convertible Note is interest bearing at 5% per annum and is due and payable on June 11, 2016. At the option of the Sponsor, any amounts outstanding under the Convertible Note may be converted into warrants to purchase shares of our common stock at a conversion price of $0.60 per warrant. Each warrant will entitle the Sponsor to purchase one-half of one share of our common stock at an exercise price of $5.75 per half share ($11.50 per whole share). Each warrant will contain other terms identical to the terms contained in the Private Placement Warrants previously issued to the Sponsor. On April 16, 2015, the Company borrowed the total proceeds of $300,000 from the Convertible Note entered with the Sponsor. For the period ended September 30, 2015, the Company incurred $6,863 of interest expense, which under the terms of the Convertible Note has been added to the principal amount. As of September 30, 2015, the outstanding balance of the Convertible Note is $306,863.

 

Administrative Service Agreement

 

The Company has agreed to pay $10,000 a month for office space, administrative services and secretarial support to WL Ross & Co. LLC, an affiliate of the Sponsor. Upon the completion of the Business Combination or the liquidation of the Company, the Company will cease paying these monthly fees. On March 26, 2015, The Sponsor irrevocably and unconditionally waived the $10,000 per month payment obligations of the Company for office space, administrative services and secretarial support for the period beginning on January 1, 2015 to December 31, 2015.

 

  5. Deferred Underwriting Compensation

 

The Company is committed to pay the Deferred Discount totaling $18,309,150 or 3.66% of the gross offering proceeds of the Public Offering, to the underwriters upon the Company’s consummation of a Business Combination. The underwriters are not entitled to any interest accrued on the Deferred Discount, and no Deferred Discount is payable to the underwriters if there is no Business Combination.

 

  6. Income Taxes

 

Components of the Company’s deferred tax asset at September 30, 2015 are as follows:

 

Net operating loss   365,693 
Valuation allowance   (365,693)
    - 

 

 Components of the Company’s deferred tax asset at December 31, 2014 are as follows:

 

Net operating loss   319,041 
Valuation allowance   (319,041)
    - 

  

The Company established a valuation allowance of approximately $366,000 as of September 30, 2015 and $319,000 as of December 31, 2014, which fully offsets the deferred tax asset as of September 30, 2015 and December 31, 2014 of approximately $366,000 and $319,000 respectively. The deferred tax asset results from applying an effective combined federal and state tax rate of 35% to net operating loss of approximately $1,045,000 as of September 30, 2015 and $912,000 as of December 31, 2014, respectively. The Company’s net operating losses will expire beginning 2034.

 

 F-12

 

  

  7. Investments and cash held in Trust

 

As of September 30, 2015, and December 31, 2014 investment securities in the Company’s Trust Account consist of $500,196,864 and $500,151,393 in United States Treasury Bills and $316,236 and $164,253 in cash respectively. The Company classifies its United States Treasury and equivalent securities as held-to-maturity in accordance with FASB ASC 320, “Investments - Debt and Equity Securities.” Held-to-maturity securities are those securities which the Company has the ability and intent to hold until maturity. Held-to-maturity treasury securities are recorded at amortized cost on the accompanying balance sheet and adjusted for the amortization or accretion of premiums or discounts.

 

The carrying amount, excluding accrued interest income, gross unrealized holding gains and fair value of held to maturity securities at September 30, 2015 and December 31, 2014 are as follows:

 

   Carrying Amount   Gross     
   September 30, 2015   Unrealized     
   (unaudited)   Holding Gains   Fair Value 
Held-to-maturity:                
U.S. Treasury Securities (Maturity dates range from 10/8/15 to 12/17/15)   $500,196,864   $70,022   $500,266,886 

 

      Gross 
   Carrying Amount   Unrealized     
   December 31, 2014   Holding Gains   Fair Value 
Held-to-maturity:               
U.S. Treasury Securities (Maturity dates range from 4/16/15 to 6/18/15)  $500,151,393   $20,622   $500,172,015 

 

  8. Fair Value Measurement

 

The Company complies with FASB ASC 820, Fair Value Measurements, for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually.

 

The following table presents information about the Company’s assets that are measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and includes situations where there is little, if any, market activity for the asset or liability:

 

       Quoted Prices in   Significant Other   Significant Other 
   September 30, 2015   Active Markets   Observable   Unobservable 
Description  (unaudited)   (Level 1)   Inputs (Level 2)   Inputs (Level 3) 
Investments and cash held in Trust Account  $500,583,122   $500,583,122   $-   $- 

 

       Quoted Prices in   Significant Other   Significant Other 
       Active Markets   Observable   Unobservable 
Description  December 31, 2014   (Level 1)   Inputs (Level 2)   Inputs (Level 3) 
Investments and cash held in Trust Account  $500,336,268   $500,336,268   $-   $- 

 

 F-13

 

 

  9. Stockholders’ Equity

 

Common Stock

 

The Company is authorized to issue 200,000,000 shares of common stock. Holders of the Company’s common stock are entitled to one vote for each share of common stock. At September 30, 2015, there were 62,531,250 shares of common stock outstanding, including 47,677,323 shares subject to possible redemption. At December 31, 2014, there were 62,531,250 shares of common stock outstanding, including 47,696,416 shares subject to possible redemption.

 

Preferred Stock

 

The Company is authorized to issue 1,000,000 shares of preferred stock with such designations, voting and other rights and preferences as may be determined from time to time by the Board of Directors. At September 30, 2015 and December 31, 2014, there were no shares of preferred stock issued and outstanding.

 

  10. Board of Directors

 

On August 13, 2015, Robert S. Miller resigned from the board of directors of the Company and any committees thereof. Two of the Company's four directors are independent and the Company's audit committee is currently comprised of two independent directors due to the vacancy caused by this resignation.

 

Also on August 13, 2015, the Company notified NASDAQ that it was no longer in compliance with Rule 5605(b)(1) of NASDAQ's listing requirements requiring that a majority of the board of directors of a  NASDAQ-listed company be comprised of independent directors or Rule 5605(c)(2) of NASDAQ's listing requirements requiring an audit committee to be comprised of at least three members. The Company is relying on the cure period set forth in Rule 5605(b)(1)(A) and Rule 5605(c)(4) that provides that if an issuer fails to comply with the requirement that a majority of the board of directors must be comprised of independent directors or that an audit committee be comprised of three independent directors due to one vacancy, the issuer shall regain compliance by the earlier of its next annual meeting of shareholders or one year from the occurrence of the event that caused the failure to comply with the requirement. The Company intends to appoint an independent director to serve on the board of directors and the audit committee as promptly as possible. As of November 12, 2015 this position is still vacant.

 

  11. Subsequent Event

 

Management has performed an evaluation of subsequent events through the date of issuance of the financial statements, noting no items which require adjustments or disclosure.

 

 F-14

 

  

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

References to the “Company,” “our,” “us” or “we” refer to WL Ross Holding Corp. The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the condensed financial statements and the notes thereto contained elsewhere in this report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

 

Special Note Regarding Forward-Looking Statements

 

All statements other than statements of historical fact included in this Form 10-Q including, without limitation, statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements. When used in this Form 10-Q, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend” and similar expressions, as they relate to us or the Company’s management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of management, as well as assumptions made by, and information currently available to, the Company’s management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in our filings with the Securities and Exchange Commission (“SEC”). All subsequent written or oral forward-looking statements attributable to us or persons acting on the Company’s behalf are qualified in their entirety by this paragraph.

 

Overview

 

We are a blank check company incorporated on March 24, 2014 as a Delaware corporation and formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (“Business Combination”). We intend to effectuate a Business Combination using cash from the proceeds of a public offering (the “Public Offering”) and the private placement of the private placement warrants that occurred simultaneously with the completion of the Public Offering (the “Private Placement Warrants”), our capital stock, debt or a combination of cash, stock and debt.

 

As indicated in the accompanying financial statements, as of September 30, 2015 and December 31, 2014, we had $229,666 and $801,415, respectively, in cash and deferred offering costs of approximately $18,309,150. Further, we expect to continue to incur significant costs in the pursuit of our acquisition plans. We cannot assure you that our plans to complete an initial Business Combination will be successful.

 

Results of Operations

 

For the three months and the nine months ended September 30, 2015, we had net losses of $29,051 and $190,931, respectively. For the three months ended September 30, 2014 and for the period from March 24, 2014 (inception) to September 30, 2014, we had net losses of $609,687 and $717,744, respectively. Our entire activity from January 1, 2015 through September 30, 2015 was identifying and evaluating prospective acquisition targets for an initial Business Combination.

 

Liquidity and Capital Resources

 

Prior to our Public Offering, on March 24, 2014, WL Ross Sponsor LLC, a Delaware limited liability company (the “Sponsor”) purchased an aggregate of 14,375,000 shares of common stock (the “Founder Shares”) for an aggregate purchase price of $25,000, or approximately $0.002 per share. Immediately prior to the pricing of the Public Offering, on June 5, 2014, the Sponsor forfeited 1,868,750 Founder Shares so that the remaining 12,506,250 Founder Shares represented 20.0% of the outstanding shares upon completion of the Public Offering. On June 11, 2014, we consummated the Public Offering of 50,025,000 units (which includes the full exercise of the underwriters’ over-allotment option) at a price of $10.00 per unit generating gross proceeds of $500,250,000 before underwriting discounts and expenses. Simultaneously with the commencement of the Public Offering, on June 5, 2014, we consummated the private sale of an aggregate of 22,400,000 Private Placement Warrants, each exercisable to purchase one-half of one share of our common stock at $5.75 per half share, to the Sponsor, at a price of $0.50 per Private Placement Warrant, generating proceeds, before expenses, of $11,200,000. We received net proceeds from the Public Offering and the sale of the Private Placement Warrants of approximately $501,345,400, net of the non-deferred portion of the underwriting commissions of $9,204,600 and offering costs and other expenses of approximately $900,000. The amount of proceeds not deposited in the Trust Account (defined below) was $1,095,400 at closing of the Public Offering. In addition, interest income on the funds held in the Trust Account may be released to us to pay our franchise and income tax obligations. For a description of the proceeds generated in the Public Offering and a discussion of the use of such proceeds, we refer you to Note 3 of the financial statements included in Part I, Item 1 of this Report.

 

 1

 

  

As of September 30, 2015 and December 31, 2014, investment securities in our trust account consisted of $500,196,864 and $500,151,393 invested in U.S. government treasury bills with a maturity of 78 and 169 days or less, respectively, and $316,236 and $164,253 held in cash, respectively.

 

On March 26, 2015, we issued a convertible promissory note (the “Convertible Note”) to the Sponsor that provides for the Sponsor to loan us up to $300,000 for ongoing expenses. The Convertible Note is interest bearing at 5% per annum and is due and payable on June 11, 2016. At the option of the Sponsor, any amounts outstanding under the Convertible Note may be converted into warrants to purchase shares of our common stock at a conversion price of $0.60 per warrant. Each warrant will entitle the Sponsor to purchase one-half of one share of our common stock at an exercise price of $5.75 per half share ($11.50 per whole share). Each warrant will contain other terms identical to the terms contained in the Private Placement Warrants previously issued to the Sponsor. On April 16, 2015 we borrowed the total proceeds of $300,000 from the Convertible Note entered with the Sponsor. For the period ended September 30, 2015, the Company incurred $6,863 of interest expense, which under the terms of the Convertible Note has been added to the principal amount. As of September 30, 2015, the outstanding balance of the Convertible Note is $306,863.

 

As of September 30, 2015 and December 31, 2014, we had cash held outside of our trust accounts of $229,666 and 801,415, respectively, which is available to fund our working capital requirements.

 

In addition, at September 30, 2015, we had current liabilities of $748,138 and negative working capital of $430,717 largely due to amounts owed to professionals, consultants, advisors and others who are working on seeking a Business Combination. Such work is continuing after September 30, 2015 and amounts are continuing to accrue. We expect to pay many of these costs upon consummation of the Business Combination. If the Business Combination were not consummated by June 11, 2016, we would (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 (which interest shall be net of taxes payable, and less up to $50,000 of interest to pay dissolution expenses) divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders' rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be less than the initial public offering price per unit in the Public Offering. Although our plan is to complete the Business Combination, there is no assurance that our plan can be accomplished. The uncertainty regarding the lack of resources to pay the above noted liabilities raises substantial doubt about our ability to continue as a going concern. No adjustments have been made to the carrying amounts of assets or liabilities should we be unable to continue operations.

 

We intend to use substantially all of the funds held in the trust account, including interest (which interest shall be net of taxes payable) to consummate a Business Combination. To the extent that our capital stock or debt is used, in whole or in part, as consideration to consummate a Business Combination, the remaining proceeds held in the trust account will be used as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth strategy.

 

We do not believe we will need to raise additional funds until the consummation of our business combination to meet the expenditures required for operating our business. However, we may need to raise additional funds through a private offering of debt or equity if such funds are required to consummate an initial business combination.

 

Off-balance sheet financing arrangements

 

We have no obligations, assets or liabilities which would be considered off-balance sheet arrangements. We do not participate in transactions that create relationships with unconsolidated entities or financial partnerships, often referred to as variable interest entities, which would have been established for the purpose of facilitating off-balance sheet arrangements.

 

We have not entered into any off-balance sheet financing arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or enter into any non-financial agreements involving assets.

 

Contractual obligations

 

We do not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities other than an administrative agreement to pay an affiliate of the Sponsor a monthly fee of $10,000 (and not to exceed this amount). This amount covers secretarial and administrative services provided to members of our management team by the Sponsor, members of the Sponsor, and our management team or their affiliates. Upon completion of a Business Combination or our liquidation, we will cease paying these monthly fees. The Sponsor irrevocably and unconditionally agreed to waive our $10,000 per month payment obligations for the period beginning on January 1, 2015 and ending on December 31, 2015.

 

 2

 

 

Critical Accounting Policies

 

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and income and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following as our critical accounting policies:

 

Offering costs

 

We comply with the requirements of Accounting Standards Codification (“ASC”) 340-10-S99-1 and SEC Staff Accounting Bulletin Topic 5A – “Expenses of Offering.” Offering costs consist principally of professional and registration fees incurred through the balance sheet date that are related to the Public Offering and were charged to stockholders’ equity upon the completion of the Public Offering. Accordingly, at each of September 30, 2015 and December 31 2014, offering costs totaling approximately $28,473,750 (including $27,513,750 in underwriters’ fees) have been charged to stockholders’ equity.

 

Redeemable Common Stock

 

All of the 50,025,000 common shares sold as part of the units in the Public Offering contain a redemption feature which allows for the redemption of common shares under our Liquidation or Tender Offer/Stockholder Approval provisions. In accordance with ASC 480, redemption provisions not solely within our control require the security to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of all of the entity’s equity instruments, are excluded from the provisions of ASC 480. Although we did not specify a maximum redemption threshold, our charter provides that in no event will we redeem our public shares in an amount that would cause our net tangible assets (stockholders’ equity) to be less than $5,000,001.

 

We recognize changes in redemption value immediately as they occur and adjusts the carrying value of the security to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable common stock are affected by charges against accumulated deficit.

 

As of September 30, 2015, 47,677,323 of the 50,025,000 public shares were classified outside of permanent equity at its redemption value. As of December 31, 2014, 47,696,416 of the 50,025,000 public shares were classified outside of permanent equity at its redemption value.

 

Loss per share of Common Stock

 

Net loss per common share is computed by dividing net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period, plus to the extent dilutive the incremental number of shares of common stock to settle warrants, as calculated using the treasury stock method. At September 30, 2015 and December 31, 2014, we had outstanding warrants to purchase 36,212,500 shares of common stock and notes that could convert into warrants and potentially be exercised or converted into common stock. For all periods presented, the weighted average of these shares was excluded from the calculation of diluted loss per share of common stock because their inclusion would have been anti-dilutive. As a result, dilutive loss per share of common stock is equal to basic loss per share of common stock.

 

Income taxes

 

Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

 

Recent accounting pronouncements

 

We adopted FASB Accounting Standards Update No. 2014-10 (ASU No. 2014-10) to Topic 915, which eliminated certain financial reporting requirements of companies previously identified as “Development Stage Entities” (Topic 915). The amendments in ASU No. 2014-10 simplify the accounting guidance by removing all incremental financial reporting requirements for development stage entities. The amendments also reduce data maintenance and, for those entities subject to audit, audit costs, by eliminating the requirement for development stage entities to present inception-to-date information in the statements of operations, cash flows, and stockholders’ equity.

 

 3

 

 

We adopted FASB Accounting Standards Update No. 2014-15, which provided guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued and to provide related footnote disclosures.

 

As of September 30, 2015, our condensed interim financial statements have been presented to conform with the reporting and disclosure requirements of the above standards.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

To date, our efforts have been limited to organizational activities and activities relating to the Public Offering and the identification of a target business. We have neither engaged in any operations nor generated any revenues. As the proceeds from the Public Offering held in trust have been invested in short term investments, our only market risk exposure relates to fluctuations in interest rates. However, due to the short-term nature of these investments, we believe there will be no associated material exposure to interest rate risk. As of September 30, 2015, the effective annualized interest rate payable on our investments was approximately 0.07 %.

 

As of September 30, 2015 and December 31, 2014, approximately $482,203,950 and $482,006,496, respectively (excluding approximately $18,309,150 of deferred underwriting discounts), was held in trust for the purposes of consummating a Business Combination. As of September 30, 2015 and December 31, 2014, the proceeds held in trust (including the deferred underwriting discounts) consist of $500,196,864 and $500,151,393 invested in U.S. government treasury bills and $316,236 and $164,253 held in cash, respectively.

 

We have not engaged in any hedging activities since our inception on March 24, 2014. We do not expect to engage in any hedging activities with respect to the market risk to which we are exposed.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in company reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

 

As required by Rules 13a-15 and 15d-15 under the Exchange Act, our Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2015. 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 effective.

 

During the most recently completed fiscal quarter, there has been no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

 4

 

 

PART II. OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

None.

 

ITEM 1A. RISK FACTORS

 

Factors that could cause our actual results to differ materially from those in this report are any of the risks described in our Annual Report and Quarterly Reports filed on March 31, 2015 and May 14, 2015, respectively, with the SEC. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations.

 

As of the date of this Report, there have been no material changes to the risk factors disclosed in our Annual Report and Quarterly Report filed on March 31, 2015 and May 14, 2015, respectively, with the SEC, however, we may disclose changes to such factors or disclose additional factors from time to time in our future filings with the SEC.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

Unregistered Sales

 

On March 24, 2014, the Sponsor purchased an aggregate of 14,375,000 Founder Shares for an aggregate purchase price of $25,000, or approximately $0.002 per share. Immediately prior to the pricing of the Public Offering, on June 5, 2014, the Sponsor forfeited 1,868,750 Founder Shares so that the remaining 12,506,250 Founder Shares represented 20.0% of the outstanding shares upon completion of the Public Offering.

 

On June 5, 2014, simultaneously with the commencement of the Public Offering, we consummated a sale of 22,400,000 Private Placement Warrants at a price of $0.50 per Private Placement Warrant, generating total proceeds of $11,200,000. The Private Placement Warrants, which were purchased by the Sponsor, are substantially similar to the warrants underlying the units issued in the Public Offering, except that if held by the original holder or their permitted assign, they (i) may be exercised for cash or on a cashless basis, (ii) are not subject to being called for redemption and (iii) subject to certain limited exceptions, will be subject to transfer restrictions until 30 days following the consummation of a Business Combination. If the Private Placement Warrants are held by holders other than its initial holders, the Private Placement Warrants will be redeemable by us and exercisable by the holders on the same basis as the Warrants.

 

On March 26, 2015, we issued a convertible promissory note (the “Convertible Note”) to the Sponsor that provides for the Sponsor to loan us up to $300,000 for ongoing expenses. The Convertible Note is interest bearing at 5% per annum and is due and payable on June 11, 2016. At the option of the Sponsor, any amounts outstanding under the Convertible Note may be converted into warrants to purchase shares of our common stock at a conversion price of $0.60 per warrant. Each warrant will entitle the Sponsor to purchase one-half of one share of our common stock at an exercise price of $5.75 per half share ($11.50 per whole share). Each warrant will contain other terms identical to the terms contained in the Private Placement Warrants previously issued to the Sponsor. On April 16, 2015 we borrowed the total proceeds of $300,000 from the Convertible Note entered with the Sponsor. For the period ended September 30, 2015, the Company incurred $6,863 of interest expense, which under the terms of the Convertible Note has been added to the principal amount. As of September 30, 2015, the outstanding balance of the Convertible Note is $306,863.

 

The sale of the above securities were deemed to be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), in reliance on Section 4(a)(2) of the Securities Act as transactions by an issuer not involving a public offering.

 

Use of Proceeds

 

On June 5, 2014, our registration statement on Form S-1 (File No. 333-195854) was declared effective by the SEC and also on June 5, 2014 our subsequent registration statement on Form S-1 (File No. 333-196547) became effective upon filing with the SEC in accordance with Rule 462(b) under the Securities Act, for our Public Offering. In our Public Offering, we sold an aggregate 50,025,000 units at an offering price to the public of $10.00 per unit for an aggregate offering price of $500,250,000, with each unit consisting of one share of common stock and one Warrant. Each Warrant entitles the holder thereof to purchase one-half of one share of our common stock at a price of $5.75 per half share. Deutsche Bank Securities Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as book runners (the “Underwriters”). The Public Offering commenced as of June 6, 2014 and did not terminate before all of the securities registered in the registration statement were sold. On June 11, 2014, we closed the sale of such units, resulting in net proceeds to us of $500,250,000.

 

 5

 

  

We paid a total of approximately $9,204,600 in underwriting discounts and commissions and approximately $960,000 for other costs and expenses related to the Public Offering. In addition, the Underwriters agreed to defer up to approximately $18,309,150 in underwriting discounts and commissions, which amount will be payable upon consummation of an initial Business Combination, if consummated. We also repaid the $350,000 in loans made to us by the Sponsor to cover expenses related to the Public Offering. No payments were made by us to directors, officers or persons owning ten percent or more of our common stock or to their associates, or to our affiliates. There has been no material change in the planned use of proceeds from the Public Offering as described in our final prospectus filed with the SEC on June 5, 2014.

 

Net proceeds of $500,250,000 from the Public Offering and simultaneous sale of the Private Placement Warrants including $18,309,150 of deferred underwriting commissions are being held in a trust account (“Trust Account”) in the United States maintained by Continental Stock Transfer & Trust Company, acting as trustee, invested in U.S. “government securities,” within the meaning of Section 2(a)(16) of the Investment Company Act of 1940 (the “1940 Act”) with a maturity of 180 days or less or in any open ended investment company that holds itself out as a money market fund selected by us meeting the conditions of paragraphs (e)(2), (e)(3) and (e)(4) of Rule 2a 7 of the 1940 Act, until the earlier of: (i) the consummation of a Business Combination or (ii) the distribution of the Trust Account as described below.

 

The amount of proceeds not deposited in the Trust Account was $1,095,400. In addition, interest income on the funds held in the Trust Account may be released to us to pay our franchise and income tax obligations.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

ITEM 5. OTHER INFORMATION

 

None.

 

ITEM 6. EXHIBITS

 

The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q.

 

Exhibit
Number
  Description
3.1   Amended and Restated Certificate of Incorporation (incorporated by reference to the document previously filed with Amendment No. 3 to the Form S-1 filed by the Company on June 4, 2014).
3.2   Bylaws (incorporated by reference to the document previously filed to the Form S-1 filed by the Company on May 9, 2014).
4.1   Specimen Common Stock Certificate (incorporated by reference to the document previously filed with Amendment No. 1 to the Form S-1 filed by the Company on May 30, 2014).
4.2   Warrant Agreement (incorporated by reference to the document previously filed to the Form 8-K filed by the Company on June 16, 2014).
10.1   Convertible Promissory Note, dated March 26, 2015, issued to WL Ross Sponsor LLC (incorporated by reference to the document previously filed to the Form 10-K filed by the Company on March 31, 2015).
31.1*   Certification of the Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a).
31.2*   Certification of the Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a).
32.1**   Certification of the Chief Executive Officer required by Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. 1350.
32.2**   Certification of the Chief Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. 1350.
101.INS*   XBRL Instance Document
101.SCH*   XBRL Taxonomy Extension Schema
101.CAL*   XBRL Taxonomy Extension Calculation Linkbase
101.DEF*   XBRL Taxonomy Extension Definition Linkbase
101.LAB*   XBRL Taxonomy Extension Label Linkbase
101.PRE*   XBRL Taxonomy Extension Presentation Linkbase

 

* Filed herewith
   
** The certifications attached as Exhibits 32.1 and 32.2 that accompany this Quarterly Report on Form 10-Q, are not deemed filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of WL Ross Holding Corp. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Form 10-Q irrespective of any general incorporation language contained in such filing.

 

 6

 

 

SIGNATURES

 

Pursuant to the requirements of Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  WL ROSS HOLDING CORP.
   
Date: November 12, 2015 /s/ Wilbur L. Ross, Jr.
  Name: Wilbur L. Ross, Jr.
  Title: Chief Executive Officer (Principal Executive Officer)
   
Date: November 12, 2015 /s/ Michael J. Gibbons
  Name: Michael J. Gibbons
  Title: Chief Financial Officer and Secretary
    (Principal Financial and Accounting Officer)

 

 7

EX-31.1 2 v423615_ex31-1.htm EXHIBIT 31.1

 

EXHIBIT 31.1

 

CERTIFICATION

 

I, Wilbur L. Ross, Jr., certify that:

 

1.           I have reviewed this Quarterly Report on Form 10-Q of WL Ross Holding Corp.;

 

2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statement made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.           Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.           The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a)          Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)          Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)          Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d)          Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.           The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

 

(a)          All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b)          Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

 

Date: November 12, 2015

 

  /s/ Wilbur L. Ross, Jr.
  Wilbur L. Ross, Jr.
  Chief Executive Officer
  (Principal Executive Officer)

 

 

 

EX-31.2 3 v423615_ex31-2.htm EXHIBIT 31.2

 

 EXHIBIT 31.2

 

CERTIFICATION

 

I, Michael J. Gibbons, certify that:

 

1.             I have reviewed this Quarterly Report on Form 10-Q of WL Ross Holding Corp.;

 

2.             Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statement made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.             Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.             The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a)          Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)          Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)          Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d)          Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.            The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

 

(a)          All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b)          Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

 

Date: November 12, 2015

 

  /s/ Michael J. Gibbons
  Michael J. Gibbons
  Chief Financial Officer and Secretary
  (Principal Financial and Accounting Officer)

 

 

EX-32.1 4 v423615_ex32-1.htm EXHIBIT 32.1

 

 EXHIBIT 32.1

 

CERTIFICATION PURSUANT TO

 

18 U.S.C. 1350

 

(SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)

 

I, Wilbur L. Ross, Jr., Chief Executive Officer of WL Ross Holding Corp. (the “Company”), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that, to the best of my knowledge:

 

(1) the Quarterly Report on Form 10-Q of the Company for the quarterly period ended September 30, 2015 (the “Report”) fully complies with the requirements of Section 13 (a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

 

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date: November 12, 2015

 

  /s/ Wilbur L. Ross, Jr.
  Wilbur L. Ross, Jr.
  Chief Executive Officer
  (Principal Executive Officer)

 

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

EX-32.2 5 v423615_ex32-2.htm EXHIBIT 32.2

 

EXHIBIT 32.2

 

CERTIFICATION PURSUANT TO

 

18 U.S.C. 1350

 

(SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)

 

I, Michael J. Gibbons, Chief Financial Officer of WL Ross Holding Corp. (the “Company”), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that, to the best of my knowledge:

 

(1) the Quarterly Report on Form 10-Q of the Company for the quarterly period ended September 30, 2015 (the “Report”) fully complies with the requirements of Section 13 (a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

 

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date: November 12, 2015

 

  /s/ Michael J. Gibbons
  Michael J. Gibbons
  Chief Financial Officer and Secretary
  (Principal Financial and Accounting Officer)

 

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

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Board of Directors</strong></font><br/> <br/><font style="font-size: 10pt;">On August 13, 2015, Robert S. Miller resigned from the board of directors of the Company and any committees thereof. Two of the Company's four directors are independent and the Company's audit committee is currently comprised of two independent directors due to the vacancy caused by this resignation.</font><br/> <br/><font style="font-size: 10pt;">Also on August 13, 2015, the Company notified NASDAQ that it was no longer in compliance with Rule 5605(b)(1) of NASDAQ's listing requirements requiring that a majority of the board of directors of a NASDAQ-listed company be comprised of independent directors or Rule 5605(c)(2) of NASDAQ's listing requirements requiring an audit committee to be comprised of at least three members. The Company is relying on the cure period set forth in Rule 5605(b)(1)(A) and Rule 5605(c)(4) that provides that if an issuer fails to comply with the requirement that a majority of the board of directors must be comprised of independent directors or that an audit committee be comprised of three independent directors due to one vacancy, the issuer shall regain compliance by the earlier of its next annual meeting of shareholders or one year from the occurrence of the event that caused the failure to comply with the requirement. The Company intends to appoint an independent director to serve on the board of directors and the audit committee as promptly as possible. As of November 12, 2015 this position is still vacant.</font></p> </div> <div id='EdgarSAA123457890000' style="font-family : 'Times New Roman';"> <div class="CursorPointer"> <table cellpadding="0" cellspacing="0" width="100%" style="font-family: 'Times New Roman', Times, serif; letter-spacing: normal; orphans: auto; text-indent: 0px; text-transform: none; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; font-style: normal; font-variant: normal; font-weight: normal; font-stretch: normal; font-size: 10pt; line-height: normal; margin-top: 0px; margin-bottom: 0px;"> <tr style="vertical-align: top;"> <td style="width: 0.25in;"><b>8.</b></td> <td><b>Fair Value Measurement</b></td> </tr> </table> </div> <p style="color: #000000; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-align: start; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal; margin: 0px; text-indent: -0.25in;"><b>&#160;</b></p> <p style="color: #000000; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal; margin: 0pt 0px; text-align: justify;">The Company complies with FASB ASC 820, Fair Value Measurements, for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually.</p> <p style="color: #000000; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal; margin: 0pt 0px; text-align: justify;">&#160;</p> <p style="color: #000000; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal; margin: 0pt 0px; text-align: justify;">The following table presents information about the Company's assets that are measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. 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Public Offering (Details) - USD ($)
6 Months Ended 9 Months Ended
Jun. 11, 2014
Sep. 30, 2014
Sep. 30, 2015
Dec. 31, 2014
Jun. 05, 2014
Mar. 31, 2014
Class of Stock [Line Items]            
Common stock, par value per share     $ 0.0001 $ 0.0001    
Payment of underwriter costs   $ 9,204,600      
Initial Upfront Payment [Member]            
Class of Stock [Line Items]            
Underwriter fee rate     1.84%      
Deferred Compensation Liability [Member]            
Class of Stock [Line Items]            
Underwriter fee rate     3.66%      
Maximum deferred payment     $ 18,309,150      
Private Placement Warrants [Member]            
Class of Stock [Line Items]            
Shares called by each warrant     0.5      
Warrant exercise price     $ 5.75      
Description of warrants    
Each Warrant will become exercisable on the later of 30 days after the completion of the Company's Business Combination or 12 months from the closing of the Public Offering and will expire five years after the completion of the Company's Business Combination or earlier upon redemption or liquidation. However, if the Company does not complete its Business Combination on or prior to the 24-month period allotted to complete the Business Combination, the Warrants will expire at the end of such period.
     
Warrant redemption price     $ 0.01      
Warrant redemption terms    
Once the warrants become exercisable, the Company may redeem the outstanding warrants in whole and not in part at a price of $0.01 per warrant upon a minimum of 30 days' prior written notice of redemption, only in the event that the last sale price of the Company's shares of common stock equals or exceeds $24.00 per share for any 20 trading days within the 30-trading day period ending on the third trading day before the Company sends the notice of redemption to the warrant holders.
     
Common Stock [Member]            
Class of Stock [Line Items]            
Sale of common stock on June 5, 2014 at $10.00 per share, shares 50,025,000 50,025,000        
Shares issued, price per share   $ 0.002     $ 10.00 $ 0.002
XML 15 R9.htm IDEA: XBRL DOCUMENT v3.3.0.814
Significant Accounting Policies
9 Months Ended
Sep. 30, 2015
Significant Accounting Policies [Abstract]  
Significant Accounting Policies
2. Significant Accounting Policies

 

Basis of Presentation

 

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the accounting and disclosure rules and regulations of the Securities and Exchange Commission (“SEC”), and reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position as of September 30, 2015 and the results of operations and cash flows for the periods presented. Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. The accompanying unaudited interim financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K filed with the SEC on March 31, 2015.

 

Development Stage Company

 

At September 30, 2015, the Company has not commenced any operations nor generated revenue. All activity through September 30, 2015 relates to the Company formation and the Public Offering. Following the Public Offering, the Company will not generate any operating revenues until after the completion of a Business Combination, at earliest. The Company will generate non-operating income in the form of interest income on the designated Trust Account after the Public Offering.

 

Loss Per Common Share

 

Net loss per common share is computed by dividing net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period, plus to the extent dilutive the incremental number of shares of common stock to settle warrants, as calculated using the treasury stock method. At September 30, 2015 and December 31, 2014, the Company had outstanding warrants to purchase 36,212,500 shares of common stock and notes that could convert into warrants and potentially be exercised or converted into common stock. For all periods presented, the weighted average of these shares was excluded from the calculation of diluted loss per share of common stock because their inclusion would have been anti-dilutive. As a result, dilutive loss per share of common stock is equal to basic loss per share of common stock.

 

Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which at times, may exceed the Federal depository insurance coverage of $250,000. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

 

Financial Instruments

  

The fair value of the Company's assets and liabilities, which qualify as financial instruments under ASC 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the balance sheet.

 

Offering Costs

  

The Company complies with the requirements of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (SAB) Topic 5A – “Expenses of Offering.” Offering costs consist principally of professional and registration fees incurred through the balance sheet date that are related to the Public Offering and were charged to stockholders' equity upon the completion of the Public Offering. Accordingly, at September 30, 2015 and December 31, 2014, offering costs totaling approximately $28,473,750 (including $27,513,750 in underwriters' fees) have been charged to stockholders' equity.

 

Redeemable Common Stock

 

As discussed in Note 3, all of the 50,025,000 common shares sold as part of the units in the Public Offering contain a redemption feature which allows for the redemption of common shares under the Company's Liquidation or Tender Offer/Stockholder Approval provisions. In accordance with ASC 480, redemption provisions not solely within the control of the Company require the security to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of all of the entity's equity instruments, are excluded from the provisions of ASC 480. Although the Company did not specify a maximum redemption threshold, its charter provides that in no event will it redeem its public shares in an amount that would cause its net tangible assets (stockholders' equity) to be less than $5,000,001.

 

The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of the security to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable common stock are affected by charges against accumulated deficit.

 

Accordingly, at September 30, 2015 and December 31, 2014, 47,677,323 and 47,696,416, respectively, of the 50,025,000 public shares were classified outside of permanent equity at its redemption value.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Income Taxes

 

The Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

 

ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those liabilities or benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax liabilities as income tax expense. No amounts were accrued for the payment of interest and penalties at September 30, 2015 and December 31, 2014. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.

 

The Company may be subject to potential examination by U.S. federal, states or foreign jurisdiction authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income amount various tax jurisdictions and compliance with U.S. federal, states or foreign tax laws. The Company's management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.

 

The Company is incorporated in the State of Delaware and is required to pay franchise taxes to the State of Delaware on an annual basis.

 

Recent Accounting Pronouncements

 

The Company adopted FASB Accounting Standards Update No. 2014-10 (ASU No. 2014-10) to Topic 915, which eliminated certain financial reporting requirements of companies previously identified as “Development Stage Entities” (Topic 915). The amendments in ASU No. 2014-10 simplify the accounting guidance by removing all incremental financial reporting requirements for development stage entities. The amendments also reduce data maintenance and, for those entities subject to audit, audit costs, by eliminating the requirement for development stage entities to present inception-to-date information in the statements of operations, cash flows, and stockholders' equity.

 

The Company adopted FASB Accounting Standards Update No. 2014-15, which provided guidance on management's responsibility in evaluating whether there is substantial doubt about a company's ability to continue as a going concern within one year from the date the financial statements are issued and to provide related footnote disclosures.

 

As of September 30, 2015, the Company's condensed interim financial statements have been presented to conform with the reporting and disclosure requirements of the above standards.


Going Concern Consideration

 

If the Company does not complete an initial Business Combination by June 11, 2016, the Company 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 100% of the common stock sold as part of the units in the Public Offering, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest (which interest shall be net of franchise and income taxes payable and less up to $50,000 of such net interest which may be distributed to the Company to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders' rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company's remaining stockholders and the Company's board of directors, dissolve and liquidate, subject in each case to the Company's obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. This mandatory liquidation and subsequent dissolution requirement raises substantial doubt about the Company's ability to continue as a going concern.

  

In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be less than the initial public offering price per unit in the Public Offering. In addition if the Company fails to complete its Business Combination by June 11, 2016, there will be no redemption rights or liquidating distributions with respect to our warrants, which will expire worthless.

 

In addition, at September 30, 2015, the Company had current liabilities of $748,138 and negative working capital of $430,717 largely due to amounts owed to professionals, consultants, advisors and others who are working on seeking a Business Combination described in Note 1. Such work is continuing after September 30, 2015 and amounts are continuing to accrue. The Company expects to pay many of these costs upon consummation of the Business Combination. If the Business Combination were not consummated by June 11, 2016, the Company would (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 (which interest shall be net of taxes payable, and less up to $50,000 of interest to pay dissolution expenses) divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders' rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be less than the initial public offering price per unit in the Public Offering. Although the Company's plan is to complete the Business Combination, there is no assurance that the Company's plan can be accomplished. The uncertainty regarding the lack of resources to pay the above noted liabilities 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 unable to continue operations.





XML 16 R29.htm IDEA: XBRL DOCUMENT v3.3.0.814
Investments and cash held in Trust (Details) - USD ($)
Sep. 30, 2015
Dec. 31, 2014
Schedule of Held-to-maturity Securities [Line Items]    
Cash equivalents $ 316,236 $ 164,253
US Treasury Securities [Member]    
Schedule of Held-to-maturity Securities [Line Items]    
Carrying Amount 500,196,864 500,151,393
Gross Unrealized Holding Gains 70,022 20,622
Fair Value $ 500,266,886 $ 500,172,015
XML 17 R28.htm IDEA: XBRL DOCUMENT v3.3.0.814
Income Taxes (Details) - USD ($)
9 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Income Taxes [Abstract]    
Net operating loss $ 365,693 $ 319,041
Valuation allowance $ (365,693) $ (319,041)
Net deferred tax asset
Applied effective rate 35.00%  
Net operating loss carry forwards $ 1,045,000 $ 912,000
Expiration date of carry forwards Jan. 01, 2034  
XML 18 R30.htm IDEA: XBRL DOCUMENT v3.3.0.814
Fair Value Measurement (Details) - Fair Value, Measurements, Recurring [Member] - USD ($)
Sep. 30, 2015
Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments and cash held in Trust Account $ 500,583,122 $ 500,336,268
Quoted Prices in Active Markets (Level 1) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments and cash held in Trust Account $ 500,583,122 $ 500,336,268
Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments and cash held in Trust Account
Significant Other Unobservable Inputs (Level 3) [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Investments and cash held in Trust Account
XML 19 R31.htm IDEA: XBRL DOCUMENT v3.3.0.814
Stockholders' Equity (Details) - shares
Sep. 30, 2015
Dec. 31, 2014
Sep. 30, 2014
Common Stock:      
Common stock, shares authorized 200,000,000 200,000,000  
Shares, Outstanding 62,531,250 62,531,250  
Common stock subject to possible redemption, shares 47,677,323 47,696,416 47,728,350
Preferred Stock:      
Preferred stock, shares authorized 1,000,000 1,000,000  
XML 20 R8.htm IDEA: XBRL DOCUMENT v3.3.0.814
Organization and Business Operations
9 Months Ended
Sep. 30, 2015
Organization and Business Operations [Abstract]  
Organization and Business Operations
1. Organization and Business Operations

 

Organization and General


WL Ross Holding Corp. (the “Company”) was incorporated in Delaware on March 24, 2014. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). The Company has neither engaged in any operations nor generated any revenue to date. The Company's management has broad discretion with respect to the Business Combination. The Company's sponsor is WL Ross Sponsor LLC, a Delaware limited liability company (the “Sponsor”). The Company has selected December 31 as its fiscal year-end.

 

At September 30, 2015, the Company had not commenced any operations. All activity for the period from March 24, 2014 (inception) through September 30, 2015 relates to the Company's formation, initial public offering (“Public Offering”) described below and efforts directed toward locating a suitable Business Combination. The Company will not generate any operating revenues until after the completion of its Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income on cash and cash equivalents from the proceeds derived from the Public Offering.

 

Financing 

 

The Company intends to finance a Business Combination with the proceeds from a $500,250,000 Public Offering (Note 3) and a $11,200,000 private placement (Note 4).

 

Upon the closing of the Public Offering and the private placement, $500,250,000 was placed in a trust account with the Continental Stock Transfer & Trust Company (the “Trust Account”) acting as Trustee.

  

Trust Account

 

The Trust Account can be invested only in U.S. government treasury bills with a maturity of one hundred and eighty (180) days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act of 1940 which invest only in direct U.S. government obligations. As of September 30, 2015 and December 31, 2014 the Trust Account consisted of U.S. government treasury bills and cash.

  

The Company's amended and restated certificate of incorporation provides that, other than the withdrawal of interest to pay taxes, if any, none of the funds held in trust will be released until the earlier of: (i) the completion of the Business Combination; or (ii) the redemption of 100% of the shares of common stock included in the units being sold in the Public Offering if the Company is unable to complete a Business Combination within 24 months from the closing of the Public Offering (June 11, 2016), subject to the requirements of law and stock exchange rules.

  

Business Combination

  

The Company's management has broad discretion with respect to the specific application of the net proceeds of the Public Offering, although substantially all of the net proceeds of the Public Offering are intended to be generally applied toward consummating a Business Combination with (or acquisition of) a Target Business. As used herein, “Target Business” must be with one or more target businesses that together have a fair market value equal to at least 80% of the balance in the trust account (less any deferred underwriting commissions and taxes payable on interest earned) at the time of the Company signing a definitive agreement in connection with the Business Combination. Furthermore, there is no assurance that the Company will be able to successfully effect a Business Combination.

 

The Company, after signing a definitive agreement for a Business Combination, will either (i) seek stockholder approval of the Business Combination at a meeting called for such purpose in connection with which stockholders may seek to redeem their shares, regardless of whether they vote for or against the Business Combination, for cash equal to their pro rata share of the aggregate amount then on deposit in the Trust Account as of two business days prior to the consummation of the Business Combination, including interest but less taxes payable, or (ii) provide stockholders with the opportunity to sell their shares to the Company by means of a tender offer (and thereby avoid the need for a stockholder vote) for an amount in cash equal to their pro rata share of the aggregate amount then on deposit in the Trust Account as of two business days prior to commencement of the tender offer, including interest but less taxes payable. The decision as to whether the Company will seek stockholder approval of the Business Combination or will allow stockholders to sell their shares in a tender offer will be made by the Company, solely in its 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 the Company to seek stockholder approval, unless a vote is required by NASDAQ rules. If the Company seeks stockholder approval, it will complete its Business Combination only if a majority of the outstanding shares of common stock voted are voted in favor of the Business Combination. However, in no event will the Company redeem or repurchase its public shares in an amount that would cause its net tangible assets to be less than $5,000,001. In such case, the Company would not proceed with the redemption or repurchase of its public shares and the related Business Combination, and instead may search for an alternate Business Combination.

 

If the Company holds a stockholder vote or there is a tender offer for shares in connection with a Business Combination, public stockholders will have the opportunity to have public shares redeemed or repurchased for an amount in cash equal to its pro rata share of the aggregate amount then on deposit in the Trust Account as of two business days prior to the consummation of the Business Combination or commencement of the tender offer, respectively, including interest but less taxes payable. As a result, such shares have been classified as common stock subject to possible redemption, in accordance with ASC 480, “Distinguishing Liabilities from Equity.”

 

The Company will only have 24 months from the closing date of the Public Offering (June 11, 2016) to complete its Business Combination. If the Company does not complete a Business Combination within this period of time, it shall (i) cease all operations except for the purposes of winding up; (ii) as promptly as reasonably possible, but not more than ten business days thereafter, redeem the public shares of common stock for a per share pro rata portion of the Trust Account, including interest, but less taxes payable (less up to $50,000 of such net interest to pay dissolution expenses) and (iii) as promptly as possible following such redemption, dissolve and liquidate the balance of the Company's net assets to its remaining stockholders, as part of its plan of dissolution and liquidation. The Sponsor has entered into letter agreements with the Company, pursuant to which it has waived its rights to participate in any redemption with respect to its initial shares; however, if the Sponsor or any of the Company's officers, directors or affiliates acquire shares of common stock in or after the Public Offering, they will be entitled to a pro rata share of the Trust Account upon the Company's redemption or liquidation in the event the Company does not complete a Business Combination within the required time period.

 

In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be less than the initial public offering price per unit in the Public Offering.

 

Emerging Growth Company

 

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 election to opt out is irrevocable. The Company has 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, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard.

XML 21 R2.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONDENSED BALANCE SHEETS - USD ($)
Sep. 30, 2015
Dec. 31, 2014
Current assets:    
Cash $ 229,666 $ 801,415
Prepaid expenses 87,755 152,628
Total current assets 317,421 954,043
Noncurrent assets:    
Investments and cash held in trust account 500,513,100 500,315,646
Total assets 500,830,521 501,269,689
Current liabilities:    
Accrued expenses 390,069 $ 856,821
Sponsor convertible note 306,863
State franchise tax accrual 51,206 $ 139,554
Total current liabilities 748,138 996,375
Other liabilities:    
Deferred underwriting compensation 18,309,150 18,309,150
Total other liabilities 18,309,150 18,309,150
Total liabilities 19,057,288 19,305,525
Common stock subject to possible redemption; 47,677,323 and 47,696,416 shares at September 30, 2015 and December 31, 2014, respectively (at redemption value of $10.00 per share) $ 476,773,230 $ 476,964,160
Stockholders' equity    
Preferred stock, $0.0001 par value; 1,000,000 shares authorized, none issued or outstanding
Common stock, $0.0001 par value; 200,000,000 shares authorized, 14,853,927 and 14,834,834 shares issued and outstanding (excluding 47,677,323 and 47,696,416 subject to possible redemption) at September 30, 2015 and December 31, 2014, respectively $ 1,485 $ 1,483
Additional paid-in-capital 6,226,535 6,035,607
Accumulated deficit (1,228,017) (1,037,086)
Total stockholders' equity 5,000,003 5,000,004
Total liabilities and stockholders' equity $ 500,830,521 $ 501,269,689
XML 22 R6.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares
6 Months Ended
Jun. 11, 2014
Jun. 05, 2014
Sep. 30, 2014
Sep. 30, 2015
Dec. 31, 2014
Mar. 31, 2014
Common stock subject to possible redemption, redemption value per share     $ 10.00 $ 10.00 $ 10.00  
Common stock subject to possible redemption, shares     47,728,350 47,677,323 47,696,416  
Common Stock [Member]            
Shares issued, price per share   $ 10.00 $ 0.002     $ 0.002
Securities issued 50,025,000   50,025,000      
Shares subject to possible redemption     47,800,124      
Warrant [Member]            
Shares issued, price per share   $ 0.50        
Securities issued   22,400,000        
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Fair Value Measurement (Tables)
9 Months Ended
Sep. 30, 2015
Fair Value Measurement [Abstract]  
Schedule of Fair Value Measurements
Description   September 30, 2015
(unaudited)
    Quoted Prices in
Active Markets
(Level 1)
    Significant Other
Observable
Inputs (Level 2)
    Significant Other
Unobservable
Inputs (Level 3)
 
Investments and cash held in Trust Account   $ 500,583,122     $ 500,583,122     $ -     $ -  

  

Description   December 31, 2014
    Quoted Prices in
Active Markets
(Level 1)
    Significant Other
Observable
Inputs (Level 2)
    Significant Other
Unobservable
Inputs (Level 3)
 
Investments and cash held in Trust Account   $ 500,336,268     $ 500,336,268     $ -     $ -  


XML 25 R24.htm IDEA: XBRL DOCUMENT v3.3.0.814
Significant Accounting Policies (Details) - USD ($)
6 Months Ended 9 Months Ended
Jun. 11, 2014
Sep. 30, 2014
Sep. 30, 2015
Dec. 31, 2014
Mar. 23, 2014
Class of Stock [Line Items]          
Shares issuable upon exercise of warrants     36,212,500 36,212,500  
Underwriters discount and offering expenses   $ 28,473,750 $ 28,473,750    
Minimum net tangible assets     $ 5,000,001    
Common stock subject to possible redemption, shares   47,728,350 47,677,323 47,696,416  
Shares, Outstanding     62,531,250 62,531,250  
Projected dissolution costs     $ 50,000    
Current liabilities     748,138 $ 996,375  
Working capital     (430,717)    
Maximum interest to pay dissolution expenses     $ 50,000    
Public [Member]          
Class of Stock [Line Items]          
Shares, Outstanding     50,025,000    
Common Stock [Member]          
Class of Stock [Line Items]          
Underwriters discount and offering expenses        
Sale of common stock on June 5, 2014 at $10.00 per share, shares 50,025,000 50,025,000      
Shares, Outstanding   14,802,900 14,853,927 14,834,834
Underwriter [Member]          
Class of Stock [Line Items]          
Underwriters discount and offering expenses     $ 27,513,750    
XML 26 Show.js IDEA: XBRL DOCUMENT /** * Rivet Software Inc. * * @copyright Copyright (c) 2006-2011 Rivet Software, Inc. All rights reserved. * Version 2.4.0.3 * */ var Show = {}; Show.LastAR = null, Show.hideAR = function(){ Show.LastAR.style.display = 'none'; }; Show.showAR = function ( link, id, win ){ if( Show.LastAR ){ Show.hideAR(); } var ref = link; do { ref = ref.nextSibling; } while (ref && ref.nodeName != 'TABLE'); if (!ref || ref.nodeName != 'TABLE') { var tmp = win ? win.document.getElementById(id) : document.getElementById(id); if( tmp ){ ref = tmp.cloneNode(true); ref.id = ''; link.parentNode.appendChild(ref); } } if( ref ){ ref.style.display = 'block'; Show.LastAR = ref; } }; Show.toggleNext = function( link ){ var ref = link; do{ ref = ref.nextSibling; }while( ref.nodeName != 'DIV' ); if( ref.style && ref.style.display && ref.style.display == 'none' ){ ref.style.display = 'block'; if( link.textContent ){ link.textContent = link.textContent.replace( '+', '-' ); }else{ link.innerText = link.innerText.replace( '+', '-' ); } }else{ ref.style.display = 'none'; if( link.textContent ){ link.textContent = link.textContent.replace( '-', '+' ); }else{ link.innerText = link.innerText.replace( '-', '+' ); } } }; XML 27 R7.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONDENSED STATEMENTS OF CASH FLOWS - USD ($)
6 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2015
Cash flows from operating activities:    
Net loss $ (717,744) $ (190,931)
Adjustments to reconcile net loss to net cash used in operations:    
Decrease/ (Increase) in prepaid expenses (182,429) 64,873
Increase/ (Decrease) in accrued state franchise tax 93,700 (88,348)
Increase/ (Decrease) in accrued expenses $ 574,944 (466,752)
Accrued interest on Sponsor convertible note 6,863
Amortization of original issue discounts $ (25,409) (138,541)
Interest on investments (1,421) (142,650)
Net cash used by operating activities $ (258,359) (955,486)
Cash flows from investing activities:    
Withdrawal of Trust Account funds for payment of Delaware franchise tax $ 83,737
Proceeds deposited into trust account for investments $ (500,250,000)
Net cash provided by / (used in) investing activities (500,250,000) $ 83,737
Cash flows from financing activities:    
Proceeds from sale of common stock to Sponsor 25,000
Proceeds from sale of common stock through public offering 500,250,000
Proceeds from sponsor to purchase private placement warrants 11,200,000
Proceeds from note payable - related party 350,000
Payment of underwriting discounts (9,204,600)
Payment of accrued formation and offering costs (458,522)
Payment of note payable - related party $ (350,000)
Proceeds from unsecured promissory note payable to Sponsor $ 300,000
Net cash provided by financing activities $ 501,811,878 300,000
Increase (decrease) in cash $ 1,303,519 (571,749)
Cash at beginning the period 801,415
Cash at end of the period $ 1,303,519 $ 229,666
Supplemental disclosure of non-cash financing activities:    
Deferred underwriting compensation 18,309,150
Accrued formation cost and offering cost $ 501,478
Supplemental disclosure of cash flow information    
Cash paid for state franchise taxes $ (223,348)
XML 28 R3.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares
Sep. 30, 2015
Dec. 31, 2014
Redeemable stock    
Common stock subject to possible redemption, shares 47,677,323 47,696,416
Common stock subject to possible redemption, redemption value per share $ 10.00 $ 10.00
Stockholders' equity    
Preferred stock, par value per share $ 0.0001 $ 0.0001
Preferred stock, shares authorized 1,000,000 1,000,000
Common stock, par value per share $ 0.0001 $ 0.0001
Common stock, shares authorized 200,000,000 200,000,000
Common stock, shares issued 14,853,927 14,834,834
Common stock, shares outstanding 14,853,927 14,834,834
XML 29 R17.htm IDEA: XBRL DOCUMENT v3.3.0.814
Board of Directors
9 Months Ended
Sep. 30, 2015
Board of Directors Note [Abstract]  
Board of Directors Note Disclosure [Text Block]

10. Board of Directors

On August 13, 2015, Robert S. Miller resigned from the board of directors of the Company and any committees thereof. Two of the Company's four directors are independent and the Company's audit committee is currently comprised of two independent directors due to the vacancy caused by this resignation.

Also on August 13, 2015, the Company notified NASDAQ that it was no longer in compliance with Rule 5605(b)(1) of NASDAQ's listing requirements requiring that a majority of the board of directors of a NASDAQ-listed company be comprised of independent directors or Rule 5605(c)(2) of NASDAQ's listing requirements requiring an audit committee to be comprised of at least three members. The Company is relying on the cure period set forth in Rule 5605(b)(1)(A) and Rule 5605(c)(4) that provides that if an issuer fails to comply with the requirement that a majority of the board of directors must be comprised of independent directors or that an audit committee be comprised of three independent directors due to one vacancy, the issuer shall regain compliance by the earlier of its next annual meeting of shareholders or one year from the occurrence of the event that caused the failure to comply with the requirement. The Company intends to appoint an independent director to serve on the board of directors and the audit committee as promptly as possible. As of November 12, 2015 this position is still vacant.

XML 30 R1.htm IDEA: XBRL DOCUMENT v3.3.0.814
Document and Entity Information - shares
9 Months Ended
Sep. 30, 2015
Nov. 12, 2015
Document and Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2015  
Document Fiscal Year Focus 2015  
Document Fiscal Period Focus Q3  
Entity Registrant Name WL Ross Holding Corp.  
Entity Central Index Key 0001604416  
Current Fiscal Year End Date --12-31  
Entity Filer Category Non-accelerated Filer  
Entity Common Stock, Shares Outstanding   62,531,250
XML 31 R18.htm IDEA: XBRL DOCUMENT v3.3.0.814
Subsequent Event
9 Months Ended
Sep. 30, 2015
Subsequent Event [Abstract]  
Subsequent Event
 11. Subsequent Event

 

Management has performed an evaluation of subsequent events through the date of issuance of the financial statements, noting no items which require adjustments or disclosure.

XML 32 R4.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONDENSED STATEMENTS OF OPERATIONS - USD ($)
3 Months Ended 6 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2014
Sep. 30, 2015
CONDENSED STATEMENTS OF OPERATIONS [Abstract]        
Revenue
Professional fees and other exepenses $ (78,013) $ (591,147) $ (650,874) $ (330,259)
State franchise taxes, other than income tax (45,000) $ (45,370) $ (93,700) (135,000)
Interest on Sponsor convertible note (3,781) (6,863)
Loss from operations (126,794) $ (636,517) $ (744,574) (472,122)
Other income - Interest income 97,743 26,830 26,830 281,191
Net loss attributable to common shares $ (29,051) $ (609,687) $ (717,744) $ (190,931)
Weighted average common shares outstanding, basic and diluted (excluding shares subject to possible redemption) 14,851,054 14,742,594 14,530,251 14,844,521
Net loss per common share:        
Basic and diluted $ 0.00 $ (0.04) $ (0.05) $ (0.01)
XML 33 R12.htm IDEA: XBRL DOCUMENT v3.3.0.814
Deferred Underwriting Compensation
9 Months Ended
Sep. 30, 2015
Deferred Underwriting Compensation [Abstract]  
Deferred Underwriting Compensation
5. Deferred Underwriting Compensation

 

The Company is committed to pay the Deferred Discount totaling $18,309,150 or 3.66% of the gross offering proceeds of the Public Offering, to the underwriters upon the Company's consummation of a Business Combination. The underwriters are not entitled to any interest accrued on the Deferred Discount, and no Deferred Discount is payable to the underwriters if there is no Business Combination.

XML 34 R11.htm IDEA: XBRL DOCUMENT v3.3.0.814
Related Party Transactions
9 Months Ended
Sep. 30, 2015
Related Party Transactions [Abstract]  
Related Party Transactions
4. Related Party Transactions

 

Founder Shares

 

In March 2014, the Sponsor purchased 14,375,000 shares of common stock (the “Founder Shares”) for $25,000, or approximately $0.002 per share. The Founder Shares are identical to the common stock included in the Units sold in the Public Offering except that the Founder Shares are subject to certain transfer restrictions, as described in more detail below. Immediately prior to the Public Offering, the Sponsor forfeited 1,868,750 Founder Shares so that the remaining founder shares represent 20.0% of the outstanding shares upon the completion of the Public Offering.

 

The Sponsor has agreed not to transfer, assign or sell any of its Founder Shares until the earlier of (A) one year after the completion of the Business Combination, or earlier if, subsequent to the Business Combination, the last sale price of the Company's common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the Business Combination or (B) the date on which the Company completes a liquidation, merger, stock exchange or other similar transaction after the Business Combination that results in all of the Company's stockholders having the right to exchange their shares of common stock for cash, securities or other property (the “Lock Up Period”).

 

Rights - The Founder Shares are identical to the public shares except that (i) The Founder Shares are subject to certain transfer restrictions, as described above, and (ii) the Sponsor has agreed to waive redemption rights in connection with the Business Combination with respect to the Founders Shares and any public shares they may purchase, and to waive their redemption rights with respect to the Founder Shares if the Company fails to complete a Business Combination within 24 months from the closing of the Public Offering (June 11, 2016).

 

Voting – If the Company seeks stockholder approval of a Business Combination, the Sponsor has agreed to vote its Founder Shares and any public shares purchased during or after the Public Offering in favor of the Business Combination.

 

Redemption – Although the Sponsor and its permitted transferees will waive their redemption rights with respect to the Founder Shares if the Company fails to complete a Business Combination within the prescribed time frame, they will be entitled to redemption rights with respect to any public shares they may own.

 

Prior to the Public Offering, we had granted the Sponsor the option to purchase, simultaneously with the consummation of an initial Business Combination, up to an additional 10,000,000 shares of common stock at a price of $10.00 per share.

 

Private Placement Warrants

 

The Sponsor has purchased from the Company an aggregate of 22,400,000 warrants at a price of $0.50 per warrant (a purchase price of $11,200,000) in a private placement that occurred simultaneously with the completion of the Public Offering (the “Private Placement Warrants”). Each Private Placement Warrant entitles the holder to purchase one-half of one share of common stock at $5.75 per share. The purchase price of the Private Placement Warrants was added to the proceeds from the Public Offering to be held in the Trust Account pending completion of the Business Combination.

 

The Private Placement Warrants (including the common stock issuable upon exercise of the Private Placement Warrants) will not be transferable, assignable or salable until 30 days after the completion of the Business Combination and they will be non-redeemable so long as they are held by the Sponsor or its permitted transferees. If the Private Placement Warrants are held by someone other than the Sponsor or its permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants included in the units being sold in the Public Offering. Otherwise, the Private Placement Warrants have terms and provisions that are identical to those of the Public Warrants sold as part of the units in the Public Offering and have no net cash settlement provisions.

 

If the Company does not complete a Business Combination, then the Private Placement Warrants proceeds will be part of the liquidation distribution to the public stockholders and the Private Placement Warrants will expire worthless.

 

Registration Rights

 

The holders of the Founder Shares and Private Placement Warrants hold registration rights to require the Company to register the sale of any of the securities held by them pursuant to a registration rights agreement. The holders of these securities will be entitled to make up to three demands, excluding short form registration demands, that the Company register such securities for sale under the Securities Act. In addition, these holders will have “piggy-back” registration rights to include their securities in other registration statements filed by the Company. However, the registration rights agreement provides that the Company will not permit any registration statement filed under the Securities Act to become effective until termination of the applicable Lock Up Period. The Company will bear the costs and expenses of filing any such registration statements.

 

Related Party

 

The Sponsor loaned the Company $350,000 in the aggregate by the issuance of unsecured promissory notes (the “Notes”) for $350,000 to cover expenses related to the Public Offering. These Notes were non-interest bearing and payable on the earlier of March 31, 2015 or the completion of the Public Offering. The Notes were repaid in full on June 12, 2014.

 

On March 26, 2015, the Company issued a convertible promissory note (the “Convertible Note”) to the Sponsor that provides for the Sponsor to loan us up to $300,000 for ongoing expenses. The Convertible Note is interest bearing at 5% per annum and is due and payable on June 11, 2016. At the option of the Sponsor, any amounts outstanding under the Convertible Note may be converted into warrants to purchase shares of our common stock at a conversion price of $0.60 per warrant. Each warrant will entitle the Sponsor to purchase one-half of one share of our common stock at an exercise price of $5.75 per half share ($11.50 per whole share). Each warrant will contain other terms identical to the terms contained in the Private Placement Warrants previously issued to the Sponsor. On April 16, 2015, the Company borrowed the total proceeds of $300,000 from the Convertible Note entered with the Sponsor. For the period ended September 30, 2015, the Company incurred $6,863 of interest expense, which under the terms of the Convertible Note has been added to the principal amount. As of September 30, 2015, the outstanding balance of the Convertible Note is $306,863.

 

Administrative Service Agreement

 

The Company has agreed to pay $10,000 a month for office space, administrative services and secretarial support to WL Ross & Co. LLC, an affiliate of the Sponsor. Upon the completion of the Business Combination or the liquidation of the Company, the Company will cease paying these monthly fees. On March 26, 2015, The Sponsor irrevocably and unconditionally waived the $10,000 per month payment obligations of the Company for office space, administrative services and secretarial support for the period beginning on January 1, 2015 to December 31, 2015.

XML 35 R23.htm IDEA: XBRL DOCUMENT v3.3.0.814
Organization and Business Operations (Details) - USD ($)
6 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2015
Organization and Business Operations [Abstract]    
Proceeds from sale of common stock through public offering $ 500,250,000
Proceeds from sponsor to purchase private placement warrants 11,200,000
Proceeds deposited into trust account $ 500,250,000  
Redemption threshold for release of funds   100.00%
Minimum percentage of Trust Account for use in acquisition   80.00%
Minimum net tangible assets   $ 5,000,001
Maximum term for completion of business acquisition   24 months
Projected dissolution costs   $ 50,000
XML 36 R19.htm IDEA: XBRL DOCUMENT v3.3.0.814
Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2015
Significant Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

 

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the accounting and disclosure rules and regulations of the Securities and Exchange Commission (“SEC”), and reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position as of September 30, 2015 and the results of operations and cash flows for the periods presented. Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. The accompanying unaudited interim financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K filed with the SEC on March 31, 2015.

Development Stage Company

Development Stage Company

 

At September 30, 2015, the Company has not commenced any operations nor generated revenue. All activity through September 30, 2015 relates to the Company formation and the Public Offering. Following the Public Offering, the Company will not generate any operating revenues until after the completion of a Business Combination, at earliest. The Company will generate non-operating income in the form of interest income on the designated Trust Account after the Public Offering.

Loss Per Common Share

Loss Per Common Share

 

Net loss per common share is computed by dividing net loss applicable to common stockholders by the weighted average number of shares of common stock outstanding during the period, plus to the extent dilutive the incremental number of shares of common stock to settle warrants, as calculated using the treasury stock method. At September 30, 2015 and December 31, 2014, the Company had outstanding warrants to purchase 36,212,500 shares of common stock and notes that could convert into warrants and potentially be exercised or converted into common stock. For all periods presented, the weighted average of these shares was excluded from the calculation of diluted loss per share of common stock because their inclusion would have been anti-dilutive. As a result, dilutive loss per share of common stock is equal to basic loss per share of common stock.

Concentration of Credit Risk

Concentration of Credit Risk

 

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which at times, may exceed the Federal depository insurance coverage of $250,000. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

Financial Instruments

Financial Instruments

  

The fair value of the Company's assets and liabilities, which qualify as financial instruments under ASC 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the balance sheet.

Offering Costs

 

Offering Costs

  

The Company complies with the requirements of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (SAB) Topic 5A – “Expenses of Offering.” Offering costs consist principally of professional and registration fees incurred through the balance sheet date that are related to the Public Offering and were charged to stockholders' equity upon the completion of the Public Offering. Accordingly, at September 30, 2015 and December 31, 2014, offering costs totaling approximately $28,473,750 (including $27,513,750 in underwriters' fees) have been charged to stockholders' equity.

Redeemable Common Stock

Redeemable Common Stock

 

As discussed in Note 3, all of the 50,025,000 common shares sold as part of the units in the Public Offering contain a redemption feature which allows for the redemption of common shares under the Company's Liquidation or Tender Offer/Stockholder Approval provisions. In accordance with ASC 480, redemption provisions not solely within the control of the Company require the security to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of all of the entity's equity instruments, are excluded from the provisions of ASC 480. Although the Company did not specify a maximum redemption threshold, its charter provides that in no event will it redeem its public shares in an amount that would cause its net tangible assets (stockholders' equity) to be less than $5,000,001.

 

The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of the security to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable common stock are affected by charges against accumulated deficit.

 

Accordingly, at September 30, 2015 and December 31, 2014, 47,677,323 and 47,696,416, respectively, of the 50,025,000 public shares were classified outside of permanent equity at its redemption value.

Use of Estimates

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Income Taxes

Income Taxes

 

The Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

 

ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those liabilities or benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax liabilities as income tax expense. No amounts were accrued for the payment of interest and penalties at September 30, 2015 and December 31, 2014. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.

 

The Company may be subject to potential examination by U.S. federal, states or foreign jurisdiction authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income amount various tax jurisdictions and compliance with U.S. federal, states or foreign tax laws. The Company's management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.

 

The Company is incorporated in the State of Delaware and is required to pay franchise taxes to the State of Delaware on an annual basis.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

 

The Company adopted FASB Accounting Standards Update No. 2014-10 (ASU No. 2014-10) to Topic 915, which eliminated certain financial reporting requirements of companies previously identified as “Development Stage Entities” (Topic 915). The amendments in ASU No. 2014-10 simplify the accounting guidance by removing all incremental financial reporting requirements for development stage entities. The amendments also reduce data maintenance and, for those entities subject to audit, audit costs, by eliminating the requirement for development stage entities to present inception-to-date information in the statements of operations, cash flows, and stockholders' equity.

 

The Company adopted FASB Accounting Standards Update No. 2014-15, which provided guidance on management's responsibility in evaluating whether there is substantial doubt about a company's ability to continue as a going concern within one year from the date the financial statements are issued and to provide related footnote disclosures.

 

As of September 30, 2015, the Company's condensed interim financial statements have been presented to conform with the reporting and disclosure requirements of the above standards.

Going Concern Consideration


Going Concern Consideration

 

If the Company does not complete an initial Business Combination by June 11, 2016, the Company 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 100% of the common stock sold as part of the units in the Public Offering, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest (which interest shall be net of franchise and income taxes payable and less up to $50,000 of such net interest which may be distributed to the Company to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders' rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company's remaining stockholders and the Company's board of directors, dissolve and liquidate, subject in each case to the Company's obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. This mandatory liquidation and subsequent dissolution requirement raises substantial doubt about the Company's ability to continue as a going concern.

  

In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be less than the initial public offering price per unit in the Public Offering. In addition if the Company fails to complete its Business Combination by June 11, 2016, there will be no redemption rights or liquidating distributions with respect to our warrants, which will expire worthless.

 

In addition, at September 30, 2015, the Company had current liabilities of $748,138 and negative working capital of $430,717 largely due to amounts owed to professionals, consultants, advisors and others who are working on seeking a Business Combination described in Note 1. Such work is continuing after September 30, 2015 and amounts are continuing to accrue. The Company expects to pay many of these costs upon consummation of the Business Combination. If the Business Combination were not consummated by June 11, 2016, the Company would (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 (which interest shall be net of taxes payable, and less up to $50,000 of interest to pay dissolution expenses) divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders' rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be less than the initial public offering price per unit in the Public Offering. Although the Company's plan is to complete the Business Combination, there is no assurance that the Company's plan can be accomplished. The uncertainty regarding the lack of resources to pay the above noted liabilities 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 unable to continue operations.



XML 37 R15.htm IDEA: XBRL DOCUMENT v3.3.0.814
Fair Value Measurement
9 Months Ended
Sep. 30, 2015
Fair Value Measurement [Abstract]  
Fair Value Measurement
8. Fair Value Measurement

 

The Company complies with FASB ASC 820, Fair Value Measurements, for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually.

 

The following table presents information about the Company's assets that are measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and includes situations where there is little, if any, market activity for the asset or liability:

 

Description   September 30, 2015
(unaudited)
    Quoted Prices in
Active Markets
(Level 1)
    Significant Other
Observable
Inputs (Level 2)
    Significant Other
Unobservable
Inputs (Level 3)
 
Investments and cash held in Trust Account   $ 500,583,122     $ 500,583,122     $ -     $ -  

  

Description   December 31, 2014
    Quoted Prices in
Active Markets
(Level 1)
    Significant Other
Observable
Inputs (Level 2)
    Significant Other
Unobservable
Inputs (Level 3)
 
Investments and cash held in Trust Account   $ 500,336,268     $ 500,336,268     $ -     $ -  


XML 38 R13.htm IDEA: XBRL DOCUMENT v3.3.0.814
Income Taxes
9 Months Ended
Sep. 30, 2015
Income Taxes [Abstract]  
Income Taxes
6. Income Taxes

 

Components of the Company's deferred tax asset at September 30, 2015 are as follows:

 

Net operating loss     365,693
Valuation allowance     (365,693 )
      -


Components of the Company's deferred tax asset at December 31, 2014 are as follows:

 

Net operating loss     319,041  
Valuation allowance     (319,041
      -  


The Company established a valuation allowance of approximately $366,000 as of September 30, 2015 and $319,000 as of December 31, 2014, which fully offsets the deferred tax asset as of September 30, 2015 and December 31, 2014 of approximately $366,000 and $319,000 respectively. The deferred tax asset results from applying an effective combined federal and state tax rate of 35% to net operating loss of approximately $1,045,000 as of September 30, 2015 and $912,000 as of December 31, 2014, respectively. The Company's net operating losses will expire beginning 2034.

XML 39 R14.htm IDEA: XBRL DOCUMENT v3.3.0.814
Investments and cash held in Trust
9 Months Ended
Sep. 30, 2015
Investments and cash held in trust [Abstract]  
Investments and cash held in Trust
  7. Investments and cash held in Trust

  

As of September 30, 2015, and December 31, 2014 investment securities in the Company's Trust Account consist of $500,196,864 and $500,151,393 in United States Treasury Bills and $316,236 and $164,253 in cash respectively. The Company classifies its United States Treasury and equivalent securities as held-to-maturity in accordance with FASB ASC 320, “Investments - Debt and Equity Securities.” Held-to-maturity securities are those securities which the Company has the ability and intent to hold until maturity. Held-to-maturity treasury securities are recorded at amortized cost on the accompanying balance sheet and adjusted for the amortization or accretion of premiums or discounts.

 

The carrying amount, excluding accrued interest income, gross unrealized holding gains and fair value of held to maturity securities at September 30, 2015 and December 31, 2014 are as follows:

 


    Carrying Amount
September 30, 2015
(unaudited)
    Gross
Unrealized
Holding Gains
    Fair Value  
Held-to-maturity:                        
U.S. Treasury Securities (Maturity dates range from 10/8/15 to 12/17/15)   $ 500,196,864     $ 70,022     $ 500,266,886  

 

    Carrying Amount
December 31, 2014
    Gross
Unrealized
Holding Gains
    Fair Value  
Held-to-maturity:                        
U.S. Treasury Securities (Maturity dates range from 4/16/15 to 6/18/15)   $ 500,151,393     $ 20,622     $ 500,172,015  


 


XML 40 R16.htm IDEA: XBRL DOCUMENT v3.3.0.814
Stockholders' Equity
9 Months Ended
Sep. 30, 2015
Stockholders' Equity [Abstract]  
Stockholders' Equity
9. Stockholders' Equity

 

Common Stock

 

The Company is authorized to issue 200,000,000 shares of common stock. Holders of the Company's common stock are entitled to one vote for each share of common stock. At September 30, 2015, there were 62,531,250 shares of common stock outstanding, including 47,677,323 shares subject to possible redemption. At December 31, 2014, there were 62,531,250 shares of common stock outstanding, including 47,696,416 shares subject to possible redemption.


Preferred Stock

 

The Company is authorized to issue 1,000,000 shares of preferred stock with such designations, voting and other rights and preferences as may be determined from time to time by the Board of Directors. At September 30, 2015 and December 31, 2014, there were no shares of preferred stock issued and outstanding.

XML 41 R21.htm IDEA: XBRL DOCUMENT v3.3.0.814
Investments and cash held in Trust (Tables)
9 Months Ended
Sep. 30, 2015
Investments and cash held in trust [Abstract]  
Schedule of Held to Maturity Securities
    Carrying Amount
September 30, 2015
(unaudited)
    Gross
Unrealized
Holding Gains
    Fair Value  
Held-to-maturity:                        
U.S. Treasury Securities (Maturity dates range from 10/8/15 to 12/17/15)   $ 500,196,864     $ 70,022     $ 500,266,886  

 

    Carrying Amount
December 31, 2014
    Gross
Unrealized
Holding Gains
    Fair Value  
Held-to-maturity:                        
U.S. Treasury Securities (Maturity dates range from 4/16/15 to 6/18/15)   $ 500,151,393     $ 20,622     $ 500,172,015  


XML 42 R26.htm IDEA: XBRL DOCUMENT v3.3.0.814
Related Party Transactions (Details) - USD ($)
6 Months Ended 9 Months Ended
Apr. 16, 2015
Mar. 26, 2015
Jun. 11, 2014
Jun. 05, 2014
Sep. 30, 2014
Sep. 30, 2015
Dec. 31, 2014
Mar. 31, 2014
Mar. 23, 2014
Related Party Transaction [Line Items]                  
Sale of common stock to Sponsor on March 2014 at $0.002 per share         $ 25,000        
Shares issuable upon exercise of warrants           36,212,500 36,212,500    
Sale of 22,400,000 of Private Placement Warrants in June 5, 2014 at $0.50 per warrant       $ 11,200,000 11,200,000        
Proceeds from note payable - related party     $ 350,000   350,000      
Payment of note payable - related party     $ 350,000   $ 350,000      
Proceeds from Convertible Debt         $ 300,000      
Convertible Debt [Member]                  
Related Party Transaction [Line Items]                  
Interest rate - related party   5.00%              
Convertible Note, amount   $ 300,000       306,863      
Conversion price per warrant   $ 0.60              
Proceeds from Convertible Debt $ 300,000                
Interest Payable, Current           $ 6,863      
Founder Shares [Member]                  
Related Party Transaction [Line Items]                  
Percentage of shares held by Sponsor           20.00%      
Related Party Transaction, Description of Transaction          
The Sponsor has agreed not to transfer, assign or sell any of its Founder Shares until the earlier of (A) one year after the completion of the Business Combination, or earlier if, subsequent to the Business Combination, the last sale price of the Company's common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the Business Combination or (B) the date on which the Company completes a liquidation, merger, stock exchange or other similar transaction after the Business Combination that results in all of the Company's stockholders having the right to exchange their shares of common stock for cash, securities or other property (the “Lock Up Period”).
     
Monthly Office Space, Administrative Services, and Secretarial Support [Member]                  
Related Party Transaction [Line Items]                  
Amount of transaction           $ 10,000      
Common Stock [Member]                  
Related Party Transaction [Line Items]                  
Sale of common stock to Sponsor in March 2014 at $0.002 per share, shares         14,375,000        
Sale of common stock to Sponsor on March 2014 at $0.002 per share         $ 1,437        
Shares issued, price per share       $ 10.00 $ 0.002     $ 0.002  
Shares forfeited     1,868,750   1,868,750        
Securities issued     50,025,000   50,025,000        
Sale of 22,400,000 of Private Placement Warrants in June 5, 2014 at $0.50 per warrant                
Warrant [Member]                  
Related Party Transaction [Line Items]                  
Shares issued, price per share       $ 0.50          
Securities issued       22,400,000          
Pre-IPO Option [Member]                  
Related Party Transaction [Line Items]                  
Shares issuable upon exercise of warrants                 10,000,000
Warrant exercise price                 $ 10.00
Private Placement Warrants [Member]                  
Related Party Transaction [Line Items]                  
Shares called by each warrant           0.5      
Warrant exercise price           $ 5.75      
Warrant For Half Share [Member]                  
Related Party Transaction [Line Items]                  
Warrant exercise price   5.75              
Whole Share Debt Warrants [Member]                  
Related Party Transaction [Line Items]                  
Warrant exercise price   $ 11.50              
XML 43 R5.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Deficit [Member]
Balance at Mar. 23, 2014
Balance, shares at Mar. 23, 2014      
Sale of common stock to Sponsor on March 2014 at $0.002 per share $ 25,000 $ 1,437 $ 23,563
Sale of common stock to Sponsor in March 2014 at $0.002 per share, shares   14,375,000    
Forfeiture of common stock by Sponsor on June 5, 2014 $ (187) 187
Forfeiture of common stock by Sponsor on June 5, 2014, shares   (1,868,750)    
Sale of common stock on June 5, 2014 at $10.00 per share $ 500,250,000 $ 5,003 500,244,997
Sale of common stock on June 5, 2014 at $10.00 per share, shares   50,025,000    
Sale of 22,400,000 of Private Placement Warrants in June 5, 2014 at $0.50 per warrant 11,200,000 11,200,000
Underwriters compensation and offering expenses (28,473,750) (28,473,750)
Common stock subject to possible redemption; 47,800,124 (at redemption value of $10.00 per share) (478,001,240) $ (4,780) (477,996,460)
Common stock subject to possible redemption; 47,800,124 (at redemption value of $10.00 per share), shares   (47,800,124)    
Change in proceeds subject to possible redemption 717,740 $ 7 $ 717,733
Change in shares subject to possible redemption, shares   71,774    
Net loss attributable to common shares (717,744) $ (717,744)
Balance at Sep. 30, 2014 5,000,006 $ 1,480 $ 5,716,270 (717,744)
Balance, shares at Sep. 30, 2014   14,802,900    
Balance at Dec. 31, 2014 $ 5,000,004 $ 1,483 6,035,607 $ (1,037,086)
Balance, shares at Dec. 31, 2014 62,531,250 14,834,834    
Underwriters compensation and offering expenses $ (28,473,750)      
Change in proceeds subject to possible redemption 190,930 $ 2 $ 190,928
Change in shares subject to possible redemption, shares   19,093    
Net loss attributable to common shares (190,931) $ (190,931)
Balance at Sep. 30, 2015 $ 5,000,003 $ 1,485 $ 6,226,535 $ (1,228,017)
Balance, shares at Sep. 30, 2015 62,531,250 14,853,927    
XML 44 R10.htm IDEA: XBRL DOCUMENT v3.3.0.814
Public Offering
9 Months Ended
Sep. 30, 2015
Public Offering [Abstract]  
Public Offering
3. Public Offering

 

Public Units

 

On June 11, 2014, the Company sold 50,025,000 at a price of $10.00 per unit (the “Public Units”) in the Public Offering. Each Unit consists of one share of the Company's common stock, $0.0001 par value per share and one redeemable common stock purchase warrant (the “Warrants”).

 

Under the terms of the warrant agreement, the Company has agreed to use its best efforts to file a new registration statement under the Securities Act following the completion of the Business Combination. Each Warrant entitles the holder to purchase one-half of one share of common stock at a price of $5.75. No fractional shares will be issued upon exercise of the warrants. If, upon exercise of the warrants, a holder would be entitled to receive a fractional interest in a share, the Company will, upon exercise, round down to the nearest whole number the number of shares of common stock to be issued to the warrant holder. Each Warrant will become exercisable on the later of 30 days after the completion of the Company's Business Combination or 12 months from the closing of the Public Offering and will expire five years after the completion of the Company's Business Combination or earlier upon redemption or liquidation. However, if the Company does not complete its Business Combination on or prior to the 24-month period allotted to complete the Business Combination, the Warrants will expire at the end of such period. If the Company is unable to deliver registered shares of common stock to the holder upon exercise of Warrants issued in connection with the 50,025,000 Public Units during the exercise period, there will be no net cash settlement of these Warrants and the Warrants will expire worthless, unless they may be exercised on a cashless basis in the circumstances described in the warrant agreement. Once the warrants become exercisable, the Company may redeem the outstanding warrants in whole and not in part at a price of $0.01 per warrant upon a minimum of 30 days' prior written notice of redemption, only in the event that the last sale price of the Company's shares of common stock equals or exceeds $24.00 per share for any 20 trading days within the 30-trading day period ending on the third trading day before the Company sends the notice of redemption to the warrant holders.

 

The Company paid an upfront underwriting discount of approximately 1.84% ($9,204,600) of the per unit offering price to the underwriters at the closing of the Public Offering, with an additional fee (the “Deferred Discount”) of 3.66% ($18,309,150) of the gross offering proceeds payable upon the Company's completion of a Business Combination. The Deferred Discount will become payable to the underwriters from the amounts held in the Trust Account solely in the event the Company completes its Business Combination. The underwriters are not entitled to any interest accrued on the Deferred Discount.

XML 45 R27.htm IDEA: XBRL DOCUMENT v3.3.0.814
Deferred Underwriting Compensation (Details) - Deferred Compensation Liability [Member]
9 Months Ended
Sep. 30, 2015
USD ($)
Registration Payment Arrangement [Line Items]  
Maximum deferred payment $ 18,309,150
Underwriter fee rate 3.66%
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Income Taxes (Tables)
9 Months Ended
Sep. 30, 2015
Income Taxes [Abstract]  
Schedule of Deferred Tax Asset
Net operating loss     365,693
Valuation allowance     (365,693 )
      -
Net operating loss     319,041  
Valuation allowance     (319,041
      -