0001144204-14-068555.txt : 20141114 0001144204-14-068555.hdr.sgml : 20141114 20141114143705 ACCESSION NUMBER: 0001144204-14-068555 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20140930 FILED AS OF DATE: 20141114 DATE AS OF CHANGE: 20141114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Terrapin 3 Acquisition Corp CENTRAL INDEX KEY: 0001608298 STANDARD INDUSTRIAL CLASSIFICATION: BLANK CHECKS [6770] IRS NUMBER: 464388636 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-36547 FILM NUMBER: 141223056 BUSINESS ADDRESS: STREET 1: 590 MADISON AVENUE STREET 2: 35TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10022 BUSINESS PHONE: 212-710-4100 MAIL ADDRESS: STREET 1: 590 MADISON AVENUE STREET 2: 35TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10022 10-Q 1 v392913_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, 2014

 

¨ 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: 001-36547

 

TERRAPIN 3 ACQUISITION CORPORATION

(Exact name of registrant as specified in its charter)


 

Delaware   46-4388636

(State or other jurisdiction of

 incorporation or organization)

 

(I.R.S. Employer

 Identification Number)

 

c/o Terrapin Partners, LLC
590 Madison Avenue

New York, NY

10022
(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code:  (212) 710-4100

 

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 definitions 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 14, 2014, there were 21,275,000 shares of the Company’s Class A common stock and 5,318,750 shares of the Company’s Class F common stock issued and outstanding.  

 

 
 

 

TABLE OF CONTENTS

 

PART I. FINANCIAL INFORMATION  
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) 1
Balance Sheets 1
Statements of Operations 2
Statement of Stockholders’ Equity 3
Statements of Cash Flows 4
Notes to Financial Statements 5
   

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

13
   

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

15
   

ITEM 4. CONTROLS AND PROCEDURES

16
   

PART II. OTHER INFORMATION

 
   

ITEM 1. LEGAL PROCEEDINGS

16
ITEM 1A. RISK FACTORS 16
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 16
ITEM 3. DEFAULTS UPON SENIOR SECURITIES 17
ITEM 4. MINE SAFETY DISCLOSURES 17
ITEM 5. OTHER INFORMATION 17
ITEM 6. EXHIBITS 18

 

 
 

  

PART I — FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

 

TERRAPIN 3 ACQUISITION CORPORATION

(a corporation in the development stage)

 

BALANCE SHEETS

 

   September 30,
2014
   December 31,
2013
 
  (unaudited)      
ASSETS          
Current assets:          
Cash  $1,084,359   $25,000 
Prepaid expenses   97,081    - 
Total current assets   1,181,440    25,000 
           
Cash equivalents held in Trust Account   212,750,003    - 
           
Total assets  $213,931,443   $25,000 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
           
Current liabilities:          
Accrued expenses  $1,312   $- 
Accrued formation and offering costs   8,832    - 
Due to affiliates   335      
Total current liabilities   10,479    - 
           
Deferred underwriting compensation   7,451,250    - 
           
Total liabilities   7,461,729    - 
           
Class A common stock subject to possible redemption; 20,146,971 (at redemption value of $10.00 per share)  201,469,710   - 
           
Stockholders’ equity          
Preferred stock, $.0001 par value, 10,000,000 shares authorized; none issued and outstanding   -    - 
           
Common stock, $.0001 par value, 10,000,000 shares authorized; none issued and outstanding   -    - 
           
Class F Common stock, $.0001 par value, 10,000,000 shares authorized; 5,318,750 shares issued and outstanding   532    532 
           
Class A Common stock, $.0001 par value, 90,000,000 shares authorized;1,128,029 shares issued and outstanding (excluding 20,146,971 shares subject to redemption)   113    - 
           
Additional paid-in capital   5,090,725    24,468 
Deficit accumulated during the development stage   (91,366)   - 
Total stockholders’ equity   5,000,004    25,000 
           
Total liabilities and stockholders’ equity  $213,931,443   $25,000 

 

See accompanying notes to financial statements.

 

1
 

 

TERRAPIN 3 ACQUISITION CORPORATION

(a corporation in the development stage)

 

STATEMENTS OF OPERATIONS

(unaudited)

 

   Three Months
Ended
September 30,
2014
   Period from
December 31,
2013 (date of
inception) to
September 30,
2014
 
         
Revenue  $-   $- 
           
Formation and operating costs   91,032    91,388 
           
Loss from operations   (91,032)   (91,388)
           
Interest and dividend income   21    22 
           
Net loss attributable to common shares  $(91,011)  $(91,366)
           
Weighted average number of common shares outstanding - basic and diluted (excluding shares subject to possible redemption)   6,170,317    5,604,678 
           
Net loss per common share - basic and diluted  $(0.01)  $(0.02)

 

See accompanying notes to financial statements

 

2
 

 

TERRAPIN 3 ACQUISITION CORPORATION

(a corporation in the development stage)

 

STATEMENT OF STOCKHOLDERS’ EQUITY

 

For the Period from December 31, 2013 (inception) to September 30, 2014

(unaudited)

 

    Common Stock
Class A
    Common Stock
Class F
    Additional
Paid-in
Capital
    Deficit
Accumulated
During the
Development
Stage
    Total
Stockholders’
Equity
 
    Shares     Amount     Shares     Amount                    
Sale of common stock to initial stockholders on December 31, 2013 at approximately $0.00465 per share     -     $ -       5,318,750     $ 532     $ 24,468     $ -     $ 25,000  
                                                         
Proceeds from Public Offering on July 22, 2014 of 21,275,000 shares of common stock     21,275,000       2,128                       212,747,872       -       212,750,000  
                                                         
Proceeds from Public Offering subject to possible redemption (at $10.00 per share)     (20,146,971 )     (2,015 )                     (201,467,695 )             (201,469,710 )
                                                         
Underwriter’s fee and offering expenses     -       -                       (12,213,920 )     -       (12,213,920 )
                                                         
Proceeds from private placement of 12,000,000 warrants on July 22, 2014     -       -                       6,000,000       -       6,000,000  
                                                         
Net loss attributable to common shares     -       -       -       -       -       (91,366 )     (91,366 )
                                                         
Balances at September 30, 2014 (unaudited)     1,128,029     113       5,318,750     $ 532     $ 5,090,725     $ (91,366 )   $ 5,000,004  

  

See accompanying notes to financial statements.

 

3
 


TERRAPIN 3 ACQUISITION CORPORATION

(a corporation in the development stage)

 

STATEMENTS OF CASH FLOWS

(unaudited)

 

   Nine Months
Ended
September 30, 2014
   December 31,
2013 (inception) to
September 30, 2014
 
Cash flows used in operating activities:          
Net loss  $(91,366)  $(91,366)
Changes in operating assets and liabilities:          
Prepaid expenses   (97,081)   (97,081)
Accrued operating expenses and accounts payable   1,312    1,312 
Net cash used in operating activities   (187,135)   (187,135)
           
Cash flows from Investing Activities          
Principal deposited in Trust Account   (212,750,000)   (212,750,000)
Interest reinvested into Trust Account   (3)   (3)
Net cash used in investing activities   (212,750,003)   (212,750,003)
           
Cash flows from financing activities:          
Proceeds from sale of common stock to initial stockholders        25,000 
Net Proceeds from Public Offering, after payment of upfront underwriting fee   208,500,000    208,500,000 
Net proceeds from private placement of warrants   6,000,000    6,000,000 
Changes in due to affiliates   334    334 
Payment of offering costs   (503,837)   (503,837)
Proceeds from note payable, stockholder  200,000    200,000 
Principal payments on note payable, stockholder   (200,000)   (200,000)
Net cash provided by financing activities   213,996,497    214,021,497 
           
Net increase in cash   1,059,359    1,084,359 
Cash at beginning of the period   25,000      
Cash at end of the period  $1,084,359   $1,084,359 
           
Supplemental disclosure of noncash financing activities:          
Accrued offering costs  $8,832   $8,832 
Deferred underwriter’s fee  $7,451,250   $7,451,250 

 

See accompanying notes to financial statements.

 

4
 

 

TERRAPIN 3 ACQUISITION CORPORATION

(a corporation in the development stage)

 

NOTES TO FINANCIAL STATEMENTS

(unaudited)

 

1.INTERIM FINANCIAL INFORMATION

The accompanying unaudited interim financial statements of Terrapin 3 Acquisition Corporation (a corporation in the development stage) (the "Company") should be read in conjunction with the audited financial statements and notes thereto included in the Company's Prospectus filed with the Securities and Exchange Commission (the "SEC") on July 17, 2014. The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, since they are interim statements, the accompanying financial statements do not include all the information and notes required by GAAP for complete financial statement presentation. In the opinion of management, the interim financial statements reflect all adjustments (consisting of normal, recurring adjustments) that are necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods presented. Interim results are not necessarily indicative of results for a full year.

 

2.DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

 

The Company is a newly organized blank check company incorporated in Delaware on December 27, 2013. The Company was formed for the purpose of acquiring, through a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, exchangeable share transaction or other similar business transaction, one or more operating businesses or assets that the Company has not yet identified (“Business Combination”). The Company has neither engaged in any operations nor generated any operating revenue to date. The Company is considered to be in the development stage as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 915, “Development Stage Entities” and is subject to the risks associated with activities of development stage companies. The Company has selected December 31 as its fiscal year end.

 

The initial stockholders of the Company, Apple Orange LLC, Noyac Path LLC, Periscope LLC, (together the “Terrapin sponsor”), and Terrapin Partners Employee Partnership 3 LLC, and MIHI LLC (the “Macquarie sponsor”; together with the Terrapin sponsor, the “Sponsors”) and Terrapin Partners Green Employee Partnership, LLC have agreed, in the event the Company is required to seek stockholder approval of its Business Combination, to vote their founders shares and any public shares held, in favor of approving the Business Combination.

 

Financing

 

The registration statement for the Company’s initial public offering (the “Public Offering” as described in Note 3) was declared effective by the United States Securities and Exchange Commission (“SEC”) on July 16, 2014. The Sponsors purchased, simultaneously with the closing of the Public Offering, $6,000,000 of warrants in a private placement (Note 4).

 

Upon the closing of the Public Offering and the private placement, $212,750,000 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.

 

The Company’s amended and restated certificate of incorporation provides that, other than the withdrawal of interest to pay taxes or for working capital, 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 sold in the Public Offering if the Company is unable to complete the Business Combination within 24 months from the closing of the Public Offering.

 

5
 

  

TERRAPIN 3 ACQUISITION CORPORATION

(a corporation in the development stage)

 

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 the Business Combination with (or acquisition of) a Target Business. As used herein, “Target Business” means 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 the Company signs a definitive agreement in connection with the Business Combination. There is no assurance that the Company will be able to successfully effect the Business Combination.

 

The Company, after signing a definitive agreement for the 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 and funds released for working capital, 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 and funds released for working capital. 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 the 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 and funds released for working capital. 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 to complete its Business Combination. If the Company does not complete the 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 and funds released for working capital (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 Sponsors and other initial stockholders have entered into letter agreements with the Company, pursuant to which they have waived their rights to participate in any redemption with respect to their initial shares; however, if the Sponsors 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 the 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.

 

6
 

 

TERRAPIN 3 ACQUISITION CORPORATION

(a corporation in the development stage)

 

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.

 

3.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of presentation

 

The accompanying financial statements are presented in U.S. dollars in conformity with GAAP and pursuant to the rules and regulations of the SEC. The accompanying financial statements recognize December 31, 2013, the date of initial funding, as the Company’s date of inception.

 

Development stage company

 

The Company complies with the reporting requirements of FASB ASC Topic 915, “Development Stage Entities”. At September 30, 2014, the Company has not commenced any operations nor generated revenue to date. All activity through September 30, 2014 relates to the Company’s formation, preparation for the Public Offering, and search for a target for the Business Combination. The Company will not generate any operating revenues until after completion of a Business Combination, at the earliest. Subsequent to the consummation of the Public Offering, the Company is generating non-operating income in the form of interest income on the designated Trust Account.

 

Net loss per common share

 

Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss per share by the weighted average number of shares of common stock outstanding, 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, 2014, the Company had outstanding warrants to purchase 16,637,500 shares of 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. Therefore, 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 concentration 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.

 

Fair value of financial instruments

 

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying balance sheets, primarily due to their short-term nature.

 

7
 

 

TERRAPIN 3 ACQUISITION CORPORATION

(a corporation in the development stage)

 

Use of estimates

 

The preparation of financial statements in conformity with GAAP requires 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.

 

Deferred offering costs

 

Deferred offering costs consist of legal and accounting fees incurred through the balance sheet date that are directly related to the Public Offering. Upon consummation of the Public Offering on July 22, 2014, offering costs of approximately $12,214,000 (including approximately $11,700,000 in underwriter fees) were incurred and have been charged to stockholders' equity as of September 30, 2014.

 

Common Stock Subject to Possible Redemption

 

As discussed in Note 4, all of the 21,275,000 shares of Class A common stock sold as part of the units in the Public Offering contain a redemption feature which allows for the redemption of shares of Class A common stock under the Company’s liquidation, tender offer, or 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. Accordingly, at September 30, 2014, 20,146,971 of the 21,275,000 public shares were classified outside of permanent equity at its redemption value.

 

Income taxes

 

The Company complies with the accounting and reporting requirements of FASB ASC Topic 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for 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.

 

FASB ASC Topic 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 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 benefits as income tax expense. There were no unrecognized tax benefits as of September 30, 2014. No amounts were accrued for the payment of interest and penalties at September 30, 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, U.S. 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 among various tax jurisdictions and compliance with U.S. federal, U.S. state and 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.

 

8
 

 

TERRAPIN 3 ACQUISITION CORPORATION

(a corporation in the development stage)

 

Recently issued accounting standards

 

In June 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-10. The amendments in ASU 2014-10 are effective for public business entities for annual reporting periods beginning after December 15, 2014 and remove all incremental financial reporting requirements from U.S. GAAP for development stage entities, including the removal of Topic 915, Development Stage Entities, from the FASB Accounting Standards Codification. In addition, the ASU: (a) adds an example disclosure in Topic 275, Risks and Uncertainties, to illustrate one way that an entity that has not begun planned principal operations could provide information about the risks and uncertainties related to the company’s current activities; and (b) removes an exception provided to development stage entities in Topic 810, Consolidation, for determining whether an entity is a variable interest entity.

 

4.PUBLIC OFFERING

 

On July 22, 2014, the Company sold 21,275,000 units at a price of $10.00 per unit (the “Public Units’) in the Public Offering, including the sale of units upon full exercise of the underwriters’ overallotment option. Each Unit consists of one share of the Company’s Class A common stock, $0.0001 par value per share , and one redeemable Class A common stock purchase warrant (the “Public 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 Public Warrant entitles the holder to purchase one-half of one share of Class A common stock at an exercise price of $5.75 per half share. 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 Public 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 Public 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 Public Warrants issued in connection with the 21,275,000 Public Units during the exercise period, there will be no net cash settlement of these Public Warrants and the Pubic 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 $4,250,000 (approximately 2.0%) of the per unit offering price to the underwriters at the closing of the Public Offering, with an additional fee (the “Deferred Discount”) of $7,451,250 (approximately 3.5%) of the gross offering proceeds payable upon the Company’s completion of the 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.

 

5.RELATED PARTY TRANSACTIONS

 

Founder Shares

 

On December 31, 2013, the Company issued an aggregate of 5,250,000 units, each unit consisting of 1 share of common stock and 1 warrant to purchase one half of one share of common stock, to the Terrapin sponsor and Terrapin Partners Employee Partnership 3 LLC (the “Founder Units”) for an aggregate purchase price of $25,000. On May 15, 2014, the Company cancelled the warrants issued as part of these Founder Units resulting in the net issuance of 5,250,000 shares (“Founder Shares”). On May 19, 2014, the Company implemented an approximate 1.0131 for 1 stock split, re-characterized its Founder Shares as Class F common shares, and authorized the issuance of Class A common stock and undesignated shares. Further, on May 19, 2014, Apple Orange LLC sold 1,211,563 Founder Shares to the Macquarie Sponsor and transferred 56,061 Founder Shares to Terrapin Partners Green Employee Partnership, LLC, an affiliate of Apple Orange LLC. The Founder Shares are identical to the Class A common stock included in the Public Units sold in the Public Offering except that the Founder Shares are subject to certain transfer restrictions and contingent adjustments, as described in more detail below (Note 9).

 

9
 

 

TERRAPIN 3 ACQUISITION CORPORATION

(a corporation in the development stage)

 

The initial stockholders have agreed not to transfer, assign or sell any of their Founder Shares until one year after the Business Combination (the “lock up”). Notwithstanding the foregoing, if the last sale price of the 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 initial Business Combination, or if the Company consummates a transaction after the initial Business Combination which results in the stockholders having the right to exchange their shares for cash or property, the Founder Shares will be released from the lock up.

 

Rights - The Founder Shares are identical to the public shares except that (i) Founder Shares are subject to certain transfer restrictions, as described above, and (ii) the initial stockholders have agreed to waive redemption rights in connection with the Business Combination with respect to the Founders Shares. However, the initial stockholders will be entitled to redemption rights with respect to any shares they hold by way of public market purchase if the Company fails to consummate the Business Combination within 24 months from the closing of the Public Offering.

 

Voting – If the Company seeks stockholder approval of the Business Combination, the initial stockholders have agreed to vote their Founder Shares and any public shares purchased during or after the Public Offering in favor of the Business Combination.

 

Redemption – Although the initial stockholders have waived their redemption rights with respect to the Founder Shares if the Company fails to complete the Business Combination within the prescribed time frame, they will be entitled to redemption rights with respect to any public shares they may own.

 

Contingent Forward Purchase

 

The Macquarie sponsor has committed to purchase, and the Company has committed to sell, 4,000,000 units on the same terms as the sale of units in the Public Offering (except for certain transfer restrictions) at $10.00 per unit, in a private placement for gross proceeds of approximately $40,000,000 to occur concurrently with the consummation of the Business Combination. The funds will be used as part of consideration to the sellers in the Business Combination; any excess funds from this private placement will be used for working capital in the post-transaction company. This commitment is independent of the percentage of stockholders selecting to redeem their shares and provides the Company with a minimum funding level for the Business Combination. In exchange for this commitment, the Company has agreed to issue to the Macquarie sponsor 1,000,000 Class F Founder Shares at the closing of the Business Combination and such private placement.

 

Private Placement Warrants

 

The Sponsors have purchased from the Company an aggregate of 12,000,000 warrants at a price of $0.50 per warrant (a purchase price of $6,000,000) 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 Class A common stock at $5.75 per half share. The purchase price of the Private Placement Warrants was added to the proceeds from the Public Offering held in the Trust Account pending completion of the Business Combination.

 

The Private Placement Warrants (including the Class A 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 Sponsors or their permitted transferees. If the Private Placement Warrants are held by someone other than the Sponsors or their 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 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.

 

10
 

 

TERRAPIN 3 ACQUISITION CORPORATION

(a corporation in the development stage)

 

If the Company does not complete the 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 Units (and underlying securities) and Founder Shares purchased in the Contingent Forward Purchase hold similar registration rights. 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 Note Payable

 

Apple Orange LLC, a Terrapin sponsor, had loaned the Company $200,000 by the issuance of an unsecured promissory note (the “Note”) for $200,000 to cover expenses related to the Public Offering. This Note was non-interest bearing and payable on the earlier of September 30, 2014 or out of the proceeds from the Public Offering. The Note was repaid in full on July 22, 2014.

 

Expense Advance Agreement

 

On July 16, 2014, the Sponsors entered into an agreement to advance to the Company, as may be requested by the Company, up to $500,000 each, for an aggregate of $1,000,000, in working capital loans in the form of promissory notes to be provided to fund expenses relating to investigating and selecting a target business and other working capital requirements prior to the Business Combination. Such note(s) shall bear no interest and shall be convertible into Public Warrants at a price of $0.50 at the option of the note holder. At September 30, 2014, no balance was due under this agreement.

 

Administrative Service Agreement

 

Commencing on July 17, 2014, the Company has agreed to pay $10,000 a month for office space, administrative services and secretarial support to Terrapin Partners LLC, an affiliate of the Terrapin sponsor. Upon the completion of the Business Combination or the liquidation of the Company, the Company will cease paying these monthly fees.

 

6.COMMITMENTS

 

The Company is committed to pay the Deferred Discount totaling $7,451,250 (approximately 3.5%) of the gross offering proceeds of the Public Offering, to the underwriters upon the Company’s consummation of the 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.

 

7.TRUST ACCOUNT

 

A total of $212,750,000, which includes $206,750,000 of the net proceeds from the Public Offering and $6,000,000 from the sale of the Private Placement Warrants, has been placed in the Trust Account. As of September 30, 2014, the balance in the Trust Account was $212,750,003.

 

11
 

 

TERRAPIN 3 ACQUISITION CORPORATION

(a corporation in the development stage)

 

8.FAIR VALUE MEASUREMENTS

 

The Company complies with ASC 820, “Fair Value Measurement”, 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 adoption of ASC 820 did not have an impact on the Company’s financial position or results of operations.

 

The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of September 30, 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,
2013
(unaudited)
   Quoted Prices
in Active
Markets
(Level 1)
   Significant
Other
Observable
Inputs
(Level 2)
   Significant
Other
Unobservable
Inputs
(Level 3)
 
Assets:                    
Restricted cash equivalents held in Trust Account  $212,750,003   $212,750,003   $-   $- 

  

9.STOCKHOLDERS’ EQUITY

 

On May 19, 2014, the Company implemented an approximate 1.0131-for-1 stock split, re-characterized its Founder Shares as shares of Class F common stock, and authorized the issuance of Class A common stock and undesignated common stock.

 

Common Stock

 

Class A Common Stock — The Company is authorized to issue 90,000,000 shares of Class A common stock with a par value of $0.0001 per share. Holders of the Company’s Class A common stock are entitled to one vote for each Class A common share. At September 30, 2014, there were 21,275,000 shares of Class A common stock issued and outstanding, which includes 20,146,971 shares subject to possible redemption.

 

Class F Common Stock — The Company is authorized to issue 10,000,000 shares of Class F common stock with a par value of $0.0001 per share. Holders of the Company’s Class F common stock are entitled to one vote for each Class F common share. Shares of Class F common stock are convertible into shares of Class A common stock at a ratio of one-for-one. In the case that additional shares of Class A common stock, or equity-linked securities, are deemed issued in excess of the amounts offered in the Public Offering and related to the closing of the Business Combination, shares of Class F common stock are subject to future modification to provide for an adjustment to the ratio by which they shall convert into shares of Class A common stock. Such adjustment will result in additional shares of Class A common stock issuable upon the conversion of Class F common stock. The number of shares of Class A common stock issuable upon conversion of all shares of Class F common stock will equal, in the aggregate, 20% of the total number of all shares of Class A common stock sold in the Public Offering plus all common shares or equity-linked securities deemed to be issued in connection with the Business Combination, excluding any shares or equity-linked securities issued, or issuable, to any seller in the Business Combination or pursuant to warrants issued to the Sponsors plus Class F common stock and the Class A common stock (but not the warrants) issued pursuant to the forward purchase contract with the Macquarie sponsor. At September 30, 2014, there were 5,318,750 shares of Class F common stock issued and outstanding.

 

Common Stock — The Company is authorized to issue 10,000,000 shares of undesignated common stock with a par value of $0.0001 per share 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, 2014, there were no shares of undesignated common stock issued and outstanding.

 

Preferred Stock

 

Preferred Stock — The Company is authorized to issue 10,000,000 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, 2014, there were no shares of preferred stock issued and outstanding.

 

12
 

 

TERRAPIN 3 ACQUISITION CORPORATION

(a corporation in the development stage)

 

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

 

References in this report to “we,” “us” or the “Company” refer to Terrapin 3 Acquisition Corporation. References to our “management” or our “management team” refer to our officers and directors, and references to the “sponsor” refer to Apple Orange LLC, Noyac Path LLC, and Periscope LLC (together the “Terrapin sponsors”), and MIHI LLC (the “Macquarie sponsor”; together with the Terrapin sponsors, the “sponsors”). The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the 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 in this Item 2 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 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 December 27, 2013 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”). The accompanying financial statements recognize December 31, 2013, the date of initial funding, as the Company’s date of inception. We intend to effectuate our Business Combination using cash from the proceeds of our initial public offering (the “Public Offering”) and a sale of warrants in a private placement 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.

 

Results of Operations

 

For the period from December 31, 2013 (inception) through September 30, 2014, we had a net loss of approximately $91,000 and incurred costs of approximately $12,214,000 with regard to the Company’s Public Offering which have been charged to stockholders’ equity.

 

The Company’s entire activity from December 31, 2013 (inception) through July 22, 2014, was in preparation for the Public Offering, which was consummated on that date. Since that date, the Company has engaged in a search for a target for the Business Combination. We believe that we have sufficient funds available to complete our efforts to effect a Business Combination with an operating business within the required 24 months from our Public Offering.

 

13
 

 

TERRAPIN 3 ACQUISITION CORPORATION

(a corporation in the development stage)

 

Liquidity and Capital Resources

 

As of September 30, 2014, we had cash of approximately $1,084,000 outside the Trust Account. Until the consummation of the Public Offering, the Company’s only source of liquidity was an initial purchase of shares of our common stock by the sponsors and a series of advances made by the sponsors and additional monies loaned under certain unsecured promissory notes.

 

On July 22, 2014, we consummated the Public Offering of 21,275,000 units at a price of $10.00 per unit. Simultaneously with the consummation of the Public Offering, we consummated the private sale of an aggregate of 12,000,000 warrants, each exercisable to purchase one-half of one share of our Class A common stock at $5.75 per half share ($11.50 per whole share), to the sponsors at a price of $0.50 per warrant, generating gross proceeds of $12,000,000. We received net proceeds from the Company’s Public Offering and the sale of the Private Placement Warrants of approximately $212,750,000, net of the non-deferred portion of the underwriting commissions of $4,250,000 (none of which were incurred from December 31, 2013 through July 22, 2014) and offering costs and other expenses of approximately $4,762,670 (none of which were incurred from December 31, 2013 through July 22, 2014). For a description of the proceeds generated in the Company’s Public Offering and a discussion of the use of such proceeds, refer to Note 4 of the unaudited financial statements included in Part I, Item 1 and in Part II, Item 2 of this Report.

 

As of September 30, 2014, $212,750,003 was held in the Trust Account (including $7,451,250 of deferred underwriting discounts and commissions and $6,000,000 from the sale of the Sponsor Warrants) and we had cash outside of trust of $1,084,000 and approximately $10,000 in accounts payable and accrued expenses, including accrued franchise tax payable. Through September 30, 2014, the Company had not withdrawn any funds from interest earned on the trust proceeds. Other than the deferred underwriting discounts and commissions, no amounts are payable to the underwriters of the Public Offering in the event of a Business Combination.

 

As described elsewhere in this report, the amounts in the Trust Account may be invested only in U.S. government treasury bills with a maturity of 180 days or less or money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act which invest only in direct U.S. government treasury obligations. The current low interest rate environment may make it more difficult for such investments to generate sufficient funds, together with the amounts available outside the Trust Account, to locate, conduct due diligence, structure, negotiate and close a Business Combination. If we are required to seek additional capital in order to finance transaction costs in connection with an intended initial Business Combination, our Sponsor or an affiliate of our Terrapin sponsor and our Macquarie sponsor have committed up to $500,000 each, for an aggregate of $1,000,000, in working capital loans. If we consummate an initial Business Combination, we would repay such loaned amounts. In the event that the initial Business Combination does not close, we may use a portion of the working capital held outside the trust account to repay such loaned amounts but no proceeds from our Trust Account would be used for such repayment, other than the interest income earned thereon. Up to $1,000,000 of such loans may be convertible into warrants of the post Business Combination entity at a price of $0.50 per warrant at the option of the lender. The warrants would be identical to the placement warrants. The terms of any additional loans by our officers and directors, if any, have not been determined and no written agreements exist with respect to such loans. Any such loans would be repaid only from funds held outside the Trust Account or from funds released to us upon completion of a Business Combination. If we are unable to complete a Business Combination because we do not have sufficient funds available to us, we will be forced to cease operations and liquidate the Trust Account.

 

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 entered into any non-financial assets.

 

14
 

 

TERRAPIN 3 ACQUISITION CORPORATION

(a corporation in the development stage)

 

Contractual obligations

 

We do not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities other than an agreement to pay an entity affiliated with our Terrapin sponsor a monthly fee of $10,000 for office space, secretarial and administrative services provided to the Company. Upon completion of a Business Combination or the Company’s liquidation, the Company will cease paying these monthly fees. We began incurring these fees on July 17, 2014 and will continue to incur these fees monthly until the earlier of the completion of the Business Combination or the Company’s liquidation.

  

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. The Company has identified the following as its critical accounting policies:

 

Loss per common share

 

Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss per share by the weighted average number of shares of common stock outstanding, plus, to the extent dilutive, the incremental number of shares of common stock to settle warrants, as calculated using the treasury stock method. 

 

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.

 

Common Stock Subject to Possible Redemption

 

As discussed in Note 4, all of the 21,275,000 shares of Class A common stock sold as part of the units in the Public Offering contain a redemption feature which allows for the redemption of shares of Class A common stock under the Company’s liquidation, tender offer, or 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. Accordingly, at September 30, 2014, 20,146,971 of the 21,275,000 public shares were classified outside of permanent equity at its redemption value.

 

Recent Accounting Pronouncements

 

In June 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-10. The amendments in ASU 2014-10 are effective for public business entities for annual reporting periods beginning after December 15, 2014 and remove all incremental financial reporting requirements from U.S. GAAP for development stage entities, including the removal of Topic 915, Development Stage Entities, from the FASB Accounting Standards Codification. In addition, the ASU: (a) adds an example disclosure in Topic 275, Risks and Uncertainties, to illustrate one way that an entity that has not begun planned principal operations could provide information about the risks and uncertainties related to the company’s current activities; and (b) removes an exception provided to development stage entities in Topic 810, Consolidation, for determining whether an entity is a variable interest entity.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

All activity through September 30, 2014 relates to our formation, the preparation for our Public Offering and searching for a target for the Business Combination. We did not have any financial instruments that were exposed to market risks at September 30, 2014.

 

15
 

 

TERRAPIN 3 ACQUISITION CORPORATION

(a corporation in the development stage)

 

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, 2014. 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.

 

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 prospectus dated July 17, 2014 filed 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 prospectus dated July 17, 2014 filed with the SEC, except 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 of Equity Securities

 

On July 22, 2014, our sponsors purchased 12,000,000 warrants, or $6,000,000 in the aggregate, in a private placement that closed simultaneously with the closing of the Public Offering. Each private placement warrant is exercisable to purchase one-half of one share of our Class A common stock at $5.75 per half share. This issuance was made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act.

 

Our Macquarie sponsor entered into a contingent forward purchase contract with us to purchase, in a private placement for gross proceeds of approximately $40,000,000 to occur concurrently with the consummation of our initial business combination, 4,000,000 of our units on substantially the same terms as the sale of units in the Public Offering at $10.00 per unit, and 1,000,000 shares of Class F common stock on the same terms as the sale of shares of Class F common stock to our sponsors prior to the Public Offering. The funds from the sale of units will be used as part of the consideration to the sellers in the initial business combination; any excess funds from this private placement will be used for working capital in the post-transaction company. This commitment is independent of the percentage of stockholders electing to redeem their public shares and provides us with a minimum funding level for the initial business combination. All such securities will be issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act.

 

16
 

  

TERRAPIN 3 ACQUISITION CORPORATION

(a corporation in the development stage)

 

No underwriting discounts or commissions were or will be paid with respect to such sales.

 

Use of Proceeds

 

On July 22, 2014, we consummated our Public Offering of 21,275,000 units (including 2,775,000 units offered pursuant to the full exercise of the underwriter’s over-allotment option), with each unit consisting of one share of our Class A common stock and one warrant to purchase one-half of one share of our Class A common stock at an exercise price of $5.75 per half share ($11.50 per whole share). 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, we will, upon exercise, round down to the nearest whole number the number of shares of Class A common stock to be issued to the warrant holder. Each warrant will become exercisable on the later of 30 days after the completion of our Business Combination or 12 months from the closing of the Public Offering. However, if we do not complete a Business Combination within the period allotted to complete the Business Combination, the warrants will expire at the end of such period. If we are unable to deliver registered shares of Class A common stock to the holder upon exercise of warrants issued in connection with the 21,275,000 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. The warrants will expire at 5:00 p.m., New York City time, five years after the completion of our initial Business Combination or earlier upon redemption or liquidation. Once the warrants issued in connection with the Public Offering become exercisable, we may redeem those 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, but if, and only if, the last sale price of our Class A common stock equals or exceeds $24.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which we send the notice of redemption to the warrant holders.

 

The units in the Public Offering were sold at an offering price of $10.00 per unit, generating total gross proceeds of $212,750,000. Deutsche Bank Securities Inc. acted as underwriter. The securities sold in the offering were registered under the Securities Act on a registration statement on Form S-1 (No. 333-196980). The SEC declared the registration statement effective on July 16, 2014.

 

 We paid a total of $4,250,000 in underwriting discounts and commissions and approximately $512,670 for other costs and expenses related to the offering. In addition, Deutsche Bank Securities Inc. agreed to defer $7,446,250 in underwriting discounts and commissions, which amount will be payable upon consummation of the Business Combination, if consummated. Concurrent with the closing of our Public Offering, we repaid our Terrapin sponsor $200,000 in satisfaction of certain outstanding promissory notes and repaid our Macquarie Sponsor $79,968 in satisfaction of certain advances against expenses.

 

After deducting the underwriting discounts and commissions (excluding the deferred portion of $7,446,250 in underwriting discounts and commissions, which amount will be payable upon consummation of the Business Combination if consummated) and the offering expenses, the total net proceeds from our Public Offering and the private placement of Sponsor Warrants was approximately $214,000,000, of which $212,750,000 (or $10.00 per unit sold in the Public Offering) was placed in the Trust Account.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

ITEM 5. OTHER INFORMATION

 

None.

 

17
 

  

TERRAPIN 3 ACQUISITION CORPORATION

(a corporation in the development stage)

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
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.
   

  

18
 

 

TERRAPIN 3 ACQUISITION CORPORATION

(a corporation in the development stage)

 

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.

 

  TERRAPIN 3 ACQUISITION CORPORATION
   
   
   
 Date: November 14, 2014 /s/ Sanjay Arora
  Name: Sanjay Arora
  Title: Chief Executive Officer
  (Principal Executive Officer)
   
 Date: November 14, 2014 /s/ Guy Barudin
  Name: Guy Barudin
  Title: Chief Financial Officer
  (Principal Financial and Accounting Officer)

 

19

 

EX-31.1 2 v392913_ex31-1.htm EXHIBIT 31.1

EXHIBIT 31.1

 

CERTIFICATION

 

I, Sanjay Arora, certify that:

 

1.          I have reviewed this Quarterly Report on Form 10-Q of Terrapin 3 Acquisition Corporation;

 

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) [Omitted pursuant to the transition period exemption for newly public companies]; and

 

(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 14, 2014

 

    /s/ Sanjay Arora
    Sanjay Arora
    Chief Executive Officer
    (Principal Executive Officer)
 

 

 

 

 

EX-31.2 3 v392913_ex31-2.htm EXHIBIT 31.2

EXHIBIT 31.2

 

CERTIFICATION

 

I, Guy Barudin, certify that:

 

1.          I have reviewed this Quarterly Report on Form 10-Q of Terrapin 3 Acquisition Corporation;

 

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) [Omitted pursuant to the transition period exemption for newly public companies]; and

 

(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 14, 2014

 

  /s/ Guy Barudin
  Guy Barudin
  Chief Financial Officer
  (Principal Financial and Accounting Officer)

 

 

 

 

 

EX-32.1 4 v392913_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, Sanjay Arora, Chief Executive Officer of Terrapin 3 Acquisition Corporation (the “Company”), certify, pursuant to 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, 2014 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

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

 

Dated:    November 14, 2014 By: /s/ Sanjay Arora
   

Sanjay Arora

Chief Executive Officer

(Principal Executive Officer)

 

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 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 v392913_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, Guy Barudin, Chief Financial Officer of Terrapin 3 Acquisition Corporation (the “Company”), certify, pursuant to 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, 2014 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

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

 

Dated:    November 14, 2014 By: /s/ Guy Barudin
   

Guy Barudin

Chief Financial Officer

(Principal Financial and Accounting Officer)

 

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 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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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 Public Warrants will expire at the end of such period. 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The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, since they are interim statements, the accompanying financial statements do not include all the information and notes required by GAAP for complete financial statement presentation. In the opinion of management, the interim financial statements reflect all adjustments (consisting of normal, recurring adjustments) that are necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods presented. 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Accordingly, at September 30, 2014, <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 20,146,971</font> of the 21,275,000 public shares were classified outside of permanent equity at its redemption value.</font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table> <div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;size: 8.5in 11.0in"> <table style="LINE-HEIGHT: 115%; FONT-FAMILY: Calibri,sans-serif; FONT-SIZE: 11pt" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; WIDTH: 0.3pt; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top" width="0"> <div style="CLEAR:both;CLEAR: both"></div> </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; WIDTH: 0.25in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top" width="24"> <div style="CLEAR:both;MARGIN: 0in 0in 0pt; FONT-FAMILY: Times New Roman,serif; FONT-SIZE: 12pt"> <b><font style="COLOR: #231f20; FONT-SIZE: 10pt"> 7.</font></b></div> </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top"> <div style="CLEAR:both;MARGIN: 0in 0in 0pt; FONT-FAMILY: Times New Roman,serif; FONT-SIZE: 12pt" align="justify"><b><font style="COLOR: #231f20; FONT-SIZE: 10pt"> TRUST ACCOUNT</font></b></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt"> <b><font style="FONT-SIZE: 10pt">&#160;</font></b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">A total of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">212,750,000</font>, which includes $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">206,750,000</font> of the net proceeds from the Public Offering and $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">6,000,000</font> from the sale of the Private Placement Warrants, has been placed in the Trust Account. 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FONT-SIZE: 8pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="43%"> <div>Description</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 8pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 8pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="13%" colspan="2"> <div>September&#160;30,<br/> 2013<br/> (unaudited)</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 8pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div>&#160;</div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #ffffff; FONT-SIZE: 8pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="13%" colspan="2"> 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XML 15 R25.htm IDEA: XBRL DOCUMENT v2.4.0.8
FAIR VALUE MEASUREMENTS (Details) (USD $)
Sep. 30, 2014
Dec. 31, 2013
Assets:    
Restricted cash equivalents held in Trust Account $ 212,750,003 $ 0
Fair Value, Measurements, Recurring [Member]
   
Assets:    
Restricted cash equivalents held in Trust Account 212,750,003  
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
   
Assets:    
Restricted cash equivalents held in Trust Account 212,750,003  
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
   
Assets:    
Restricted cash equivalents held in Trust Account 0  
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
   
Assets:    
Restricted cash equivalents held in Trust Account $ 0  
XML 16 R9.htm IDEA: XBRL DOCUMENT v2.4.0.8
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
9 Months Ended
Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
2.
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
 
The Company is a newly organized blank check company incorporated in Delaware on December 27, 2013. The Company was formed for the purpose of acquiring, through a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, exchangeable share transaction or other similar business transaction, one or more operating businesses or assets that the Company has not yet identified (“Business Combination”). The Company has neither engaged in any operations nor generated any operating revenue to date. The Company is considered to be in the development stage as defined in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 915, “Development Stage Entities” and is subject to the risks associated with activities of development stage companies. The Company has selected December 31 as its fiscal year end.
 
The initial stockholders of the Company, Apple Orange LLC, Noyac Path LLC, Periscope LLC, (together the “Terrapin sponsor”), and Terrapin Partners Employee Partnership 3 LLC, and MIHI LLC (the “Macquarie sponsor”; together with the Terrapin sponsor, the “Sponsors”) and Terrapin Partners Green Employee Partnership, LLC have agreed, in the event the Company is required to seek stockholder approval of its Business Combination, to vote their founders shares and any public shares held, in favor of approving the Business Combination.
 
Financing
 
The registration statement for the Company’s initial public offering (the “Public Offering” as described in Note 3) was declared effective by the United States Securities and Exchange Commission (“SEC”) on July 16, 2014. The Sponsors purchased, simultaneously with the closing of the Public Offering, $6,000,000 of warrants in a private placement (Note 4).
 
Upon the closing of the Public Offering and the private placement, $212,750,000 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.
 
The Company’s amended and restated certificate of incorporation provides that, other than the withdrawal of interest to pay taxes or for working capital, 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 sold in the Public Offering if the Company is unable to complete the Business Combination within 24 months from the closing of the Public Offering.
  
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 the Business Combination with (or acquisition of) a Target Business. As used herein, “Target Business” means 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 the Company signs a definitive agreement in connection with the Business Combination. There is no assurance that the Company will be able to successfully effect the Business Combination.
 
The Company, after signing a definitive agreement for the 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 and funds released for working capital, 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 and funds released for working capital. 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 the 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 and funds released for working capital. 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 to complete its Business Combination. If the Company does not complete the 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 and funds released for working capital (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 Sponsors and other initial stockholders have entered into letter agreements with the Company, pursuant to which they have waived their rights to participate in any redemption with respect to their initial shares; however, if the Sponsors 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 the 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.
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INTERIM FINANCIAL INFORMATION
9 Months Ended
Sep. 30, 2014
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information [Text Block]
1.
INTERIM FINANCIAL INFORMATION
 
The accompanying unaudited interim financial statements of Terrapin 3 Acquisition Corporation (a corporation in the development stage) (the "Company") should be read in conjunction with the audited financial statements and notes thereto included in the Company's Prospectus filed with the Securities and Exchange Commission (the "SEC") on July 17, 2014. The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, since they are interim statements, the accompanying financial statements do not include all the information and notes required by GAAP for complete financial statement presentation. In the opinion of management, the interim financial statements reflect all adjustments (consisting of normal, recurring adjustments) that are necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods presented. Interim results are not necessarily indicative of results for a full year.
XML 19 R2.htm IDEA: XBRL DOCUMENT v2.4.0.8
BALANCE SHEETS (USD $)
Sep. 30, 2014
Dec. 31, 2013
Current assets:    
Cash $ 1,084,359 $ 25,000
Prepaid expenses 97,081 0
Total current assets 1,181,440 25,000
Cash equivalents held in Trust Account 212,750,003 0
Total assets 213,931,443 25,000
Current liabilities:    
Accrued expenses 1,312 0
Accrued formation and offering costs 8,832 0
Due to affiliates 335  
Total current liabilities 10,479 0
Deferred underwriting compensation 7,451,250 0
Total liabilities 7,461,729 0
Stockholders' equity    
Preferred stock, $.0001 par value, 10,000,000 shares authorized; none issued and outstanding 0 0
Common stock value 0 0
Additional paid-in capital 5,090,725 24,468
Deficit accumulated during the development stage (91,366) 0
Total stockholders' equity 5,000,004 25,000
Total liabilities and stockholders' equity 213,931,443 25,000
Common Class A [Member]
   
Stockholders' equity    
Common stock value 113 0
Common Class A [Member] | Common Stock Subject to Mandatory Redemption [Member]
   
Stockholders' equity    
Common stock value 201,469,710 0
Common Class F [Member]
   
Stockholders' equity    
Common stock value $ 532 $ 532
XML 20 R6.htm IDEA: XBRL DOCUMENT v2.4.0.8
STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $)
9 Months Ended
Sep. 30, 2014
Development Stage Entities, Equity Issuance, Per Share Amount   
Class of Warrant or Right, Number of Securities Called by Warrants or Rights 12,000,000
Common Class A [Member] | Common Stock Subject to Mandatory Redemption [Member]
 
Temporary Equity, Redemption Price Per Share $ 10.00
Development Stage Entities, Equity Issuance, Per Share Amount   
Common Class F [Member]
 
Development Stage Entities, Equity Issuance, Per Share Amount $ 0.00465
XML 21 R22.htm IDEA: XBRL DOCUMENT v2.4.0.8
RELATED PARTY TRANSACTIONS (Details Textual) (USD $)
1 Months Ended 9 Months Ended 9 Months Ended 0 Months Ended 9 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended
May 19, 2014
Sep. 30, 2014
Sep. 30, 2014
Jul. 17, 2014
Jul. 16, 2014
Working Capital Loan [Member]
Sep. 30, 2014
Unsecured Promissory Notes [Member]
Sep. 30, 2014
Private Placement [Member]
Jul. 16, 2014
Private Placement [Member]
May 15, 2014
Founder [Member]
Sep. 30, 2014
Founder [Member]
May 19, 2014
Macquarie Sponsor [Member]
Sep. 30, 2014
Macquarie Sponsor [Member]
Sep. 30, 2014
Macquarie Sponsor [Member]
Common Class F [Member]
May 19, 2014
Terrapin Partners [Member]
Jul. 16, 2014
Sponsors [Member]
Working Capital Loan [Member]
Related Party Transaction [Line Items]                              
Number Of Units Issued During Period                   5,250,000   4,000,000      
Proceeds from Issuance of Common Stock     $ 25,000             $ 25,000          
Stock Issued During Period, Shares, New Issues                 5,250,000       1,000,000    
Stockholders' Equity Note, Stock Split 1.0131-for-1                            
Sale Of Founder shares During Period                     1,211,563        
Founder Shares Transferred During Period                           56,061  
Maximum Sale of Common Stock Price Per Share   $ 12.00                          
Sale Of Units, Price Per Unit                       10.00      
Proceeds from Issuance or Sale of Equity             6,000,000         40,000,000      
Class of Warrant or Right, Number of Securities Called by Warrants or Rights   12,000,000 12,000,000       12,000,000                
Class of Warrant or Right, Exercise Price of Warrants or Rights   $ 5.75 $ 5.75       $ 0.50 $ 0.50              
Warrant Exercise Price, Per Half Share             $ 5.75                
Debt Instrument, Face Amount         1,000,000 200,000                 500,000
Monthly Payment For Office Space       $ 10,000                      
XML 22 R24.htm IDEA: XBRL DOCUMENT v2.4.0.8
TRUST ACCOUNT (Details Textual) (USD $)
0 Months Ended 9 Months Ended
Jul. 16, 2014
Sep. 30, 2014
Sep. 30, 2014
Dec. 31, 2013
Trust Account [Line Items]        
Payments For Principal Deposited In Trust Account $ 212,750,000 $ 212,750,000 $ 212,750,000  
Restricted Cash and Investments, Noncurrent   212,750,003 212,750,003 0
Public Offering [Member]
       
Trust Account [Line Items]        
Payments For Principal Deposited In Trust Account   206,750,000    
Private Placement [Member]
       
Trust Account [Line Items]        
Payments For Principal Deposited In Trust Account   $ 6,000,000    
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STATEMENTS OF CASH FLOWS (USD $)
9 Months Ended
Sep. 30, 2014
Sep. 30, 2014
Cash flows used in operating activities:    
Net loss $ (91,366) $ (91,366)
Changes in operating assets and liabilities:    
Prepaid expenses (97,081) (97,081)
Accrued operating expenses and accounts payable 1,312 1,312
Net cash used in operating activities (187,135) (187,135)
Cash flows from Investing Activities    
Principal deposited in Trust Account (212,750,000) (212,750,000)
Interest reinvested into Trust Account (3) (3)
Net cash used in investing activities (212,750,003) (212,750,003)
Cash flows from financing activities:    
Proceeds from sale of common stock to initial stockholders   25,000
Net Proceeds from Public Offering, after payment of upfront underwriting fee 208,500,000 208,500,000
Net proceeds from private placement of warrants 6,000,000 6,000,000
Changes in due to affiliates 334 334
Payment of offering costs (503,837) (503,837)
Proceeds from note payable, stockholder 200,000 200,000
Principal payments on note payable, stockholder (200,000) (200,000)
Net cash provided by financing activities 213,996,497 214,021,497
Net increase in cash 1,059,359 1,084,359
Cash at beginning of the period 25,000  
Cash at end of the period 1,084,359 1,084,359
Supplemental disclosure of noncash financing activities:    
Accrued offering costs 8,832 8,832
Deferred underwriter's fee $ 7,451,250 $ 7,451,250
XML 25 R3.htm IDEA: XBRL DOCUMENT v2.4.0.8
BALANCE SHEETS (Parenthetical) (USD $)
Sep. 30, 2014
Dec. 31, 2013
Preferred Stock, Par Value $ 0.0001 $ 0.0001
Preferred Stock, Shares Authorized 10,000,000 10,000,000
Preferred Stock, Shares Issued 0 0
Preferred Stock, Shares Outstanding 0 0
Common Stock, Par Value $ 0.0001 $ 0.0001
Common Stock, Shares Authorized 10,000,000 10,000,000
Common Stock, Shares, Issued 0 0
Common Stock, Shares, Outstanding 0 0
Common Class A [Member]
   
Common Stock, Par Value $ 0.0001 $ 0.0001
Common Stock, Shares Authorized 90,000,000 90,000,000
Common Stock, Shares, Issued 1,128,029 1,128,029
Common Stock, Shares, Outstanding 1,128,029 1,128,029
Common Class A [Member] | Common Stock Subject to Mandatory Redemption [Member]
   
Common Stock, Shares, Issued 20,146,971 20,146,971
Temporary Equity, Redemption Price Per Share $ 10.00 $ 10.00
Common Class F [Member]
   
Common Stock, Par Value $ 0.0001 $ 0.0001
Common Stock, Shares Authorized 10,000,000 10,000,000
Common Stock, Shares, Issued 5,318,750 5,318,750
Common Stock, Shares, Outstanding 5,318,750 5,318,750
XML 26 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
9 Months Ended
Sep. 30, 2014
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]
Basis of presentation
 
The accompanying financial statements are presented in U.S. dollars in conformity with GAAP and pursuant to the rules and regulations of the SEC. The accompanying financial statements recognize December 31, 2013, the date of initial funding, as the Company’s date of inception.
Development Stage Enterprises [Policy Text Block]
Development stage company
 
The Company complies with the reporting requirements of FASB ASC Topic 915, “Development Stage Entities”. At September 30, 2014, the Company has not commenced any operations nor generated revenue to date. All activity through September 30, 2014 relates to the Company’s formation, preparation for the Public Offering, and search for a target for the Business Combination. The Company will not generate any operating revenues until after completion of a Business Combination, at the earliest. Subsequent to the consummation of the Public Offering, the Company is generating non-operating income in the form of interest income on the designated Trust Account.
Earnings Per Share, Policy [Policy Text Block]
Net loss per common share
 
Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss per share by the weighted average number of shares of common stock outstanding, 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, 2014, the Company had outstanding warrants to purchase 16,637,500 shares of 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. Therefore, dilutive loss per share of common stock is equal to basic loss per share of common stock.
Concentration Risk, Credit Risk, Policy [Policy Text Block]
Concentration of credit risk
 
Financial instruments that potentially subject the Company to concentration 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.
Fair Value of Financial Instruments, Policy [Policy Text Block]
Fair value of financial instruments
 
The fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying balance sheets, primarily due to their short-term nature.
Use of Estimates, Policy [Policy Text Block]
Use of estimates
 
The preparation of financial statements in conformity with GAAP requires 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.
Deferred Charges, Policy [Policy Text Block]
Deferred offering costs
 
Deferred offering costs consist of legal and accounting fees incurred through the balance sheet date that are directly related to the Public Offering. Upon consummation of the Public Offering on July 22, 2014, offering costs of approximately $12,214,000 (including approximately $11,700,000 in underwriter fees) were incurred and have been charged to stockholders' equity as of September 30, 2014.
Common Stock Subject To Possible Redemption [Policy Text Block]
Common Stock Subject to Possible Redemption
 
As discussed in Note 4, all of the 21,275,000 shares of Class A common stock sold as part of the units in the Public Offering contain a redemption feature which allows for the redemption of shares of Class A common stock under the Company’s liquidation, tender offer, or 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. Accordingly, at September 30, 2014, 20,146,971 of the 21,275,000 public shares were classified outside of permanent equity at its redemption value.
Income Tax, Policy [Policy Text Block]
Income taxes
 
The Company complies with the accounting and reporting requirements of FASB ASC Topic 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for 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.
 
FASB ASC Topic 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 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 benefits as income tax expense. There were no unrecognized tax benefits as of September 30, 2014. No amounts were accrued for the payment of interest and penalties at September 30, 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, U.S. 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 among various tax jurisdictions and compliance with U.S. federal, U.S. state and 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.
New Accounting Pronouncements, Policy [Policy Text Block]
Recently issued accounting standards
 
In June 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-10. The amendments in ASU 2014-10 are effective for public business entities for annual reporting periods beginning after December 15, 2014 and remove all incremental financial reporting requirements from U.S. GAAP for development stage entities, including the removal of Topic 915, Development Stage Entities, from the FASB Accounting Standards Codification. In addition, the ASU: (a) adds an example disclosure in Topic 275, Risks and Uncertainties, to illustrate one way that an entity that has not begun planned principal operations could provide information about the risks and uncertainties related to the company’s current activities; and (b) removes an exception provided to development stage entities in Topic 810, Consolidation, for determining whether an entity is a variable interest entity.
XML 27 R1.htm IDEA: XBRL DOCUMENT v2.4.0.8
Document And Entity Information
9 Months Ended
Sep. 30, 2014
Nov. 14, 2014
Common Class A [Member]
Nov. 14, 2014
Common Class F [Member]
Document Information [Line Items]      
Entity Registrant Name Terrapin 3 Acquisition Corp    
Entity Central Index Key 0001608298    
Current Fiscal Year End Date --12-31    
Entity Filer Category Non-accelerated Filer    
Trading Symbol TRTLU    
Entity Common Stock, Shares Outstanding   21,275,000 5,318,750
Document Type 10-Q    
Amendment Flag false    
Document Period End Date Sep. 30, 2014    
Document Fiscal Period Focus Q3    
Document Fiscal Year Focus 2014    
XML 28 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
FAIR VALUE MEASUREMENTS (Tables)
9 Months Ended
Sep. 30, 2014
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
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,
2013
(unaudited)
 
Quoted Prices
in Active
Markets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Other
Unobservable
Inputs
(Level 3)
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted cash equivalents held in Trust Account
 
$
212,750,003
 
$
212,750,003
 
$
-
 
$
-
 
XML 29 R4.htm IDEA: XBRL DOCUMENT v2.4.0.8
STATEMENTS OF OPERATIONS (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2014
Sep. 30, 2014
Revenue $ 0 $ 0
Formation and operating costs 91,032 91,388
Loss from operations (91,032) (91,388)
Interest and dividend income 21 22
Net loss attributable to common shares $ (91,011) $ (91,366)
Weighted average number of common shares outstanding - basic and diluted (excluding shares subject to possible redemption) (in shares) 6,170,317 5,604,678
Net loss per common share - basic and diluted (in dollars per share) $ (0.01) $ (0.02)
XML 30 R12.htm IDEA: XBRL DOCUMENT v2.4.0.8
RELATED PARTY TRANSACTIONS
9 Months Ended
Sep. 30, 2014
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]
5.
RELATED PARTY TRANSACTIONS
 
Founder Shares
 
On December 31, 2013, the Company issued an aggregate of 5,250,000 units, each unit consisting of 1 share of common stock and 1 warrant to purchase one half of one share of common stock, to the Terrapin sponsor and Terrapin Partners Employee Partnership 3 LLC (the “Founder Units”) for an aggregate purchase price of $25,000. On May 15, 2014, the Company cancelled the warrants issued as part of these Founder Units resulting in the net issuance of 5,250,000 shares (“Founder Shares”). On May 19, 2014, the Company implemented an approximate 1.0131 for 1 stock split, re-characterized its Founder Shares as Class F common shares, and authorized the issuance of Class A common stock and undesignated shares. Further, on May 19, 2014, Apple Orange LLC sold 1,211,563 Founder Shares to the Macquarie Sponsor and transferred 56,061 Founder Shares to Terrapin Partners Green Employee Partnership, LLC, an affiliate of Apple Orange LLC. The Founder Shares are identical to the Class A common stock included in the Public Units sold in the Public Offering except that the Founder Shares are subject to certain transfer restrictions and contingent adjustments, as described in more detail below (Note 9).
 
The initial stockholders have agreed not to transfer, assign or sell any of their Founder Shares until one year after the Business Combination (the “lock up”). Notwithstanding the foregoing, if the last sale price of the 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 initial Business Combination, or if the Company consummates a transaction after the initial Business Combination which results in the stockholders having the right to exchange their shares for cash or property, the Founder Shares will be released from the lock up.
 
Rights - The Founder Shares are identical to the public shares except that (i) Founder Shares are subject to certain transfer restrictions, as described above, and (ii) the initial stockholders have agreed to waive redemption rights in connection with the Business Combination with respect to the Founders Shares. However, the initial stockholders will be entitled to redemption rights with respect to any shares they hold by way of public market purchase if the Company fails to consummate the Business Combination within 24 months from the closing of the Public Offering.
 
Voting – If the Company seeks stockholder approval of the Business Combination, the initial stockholders have agreed to vote their Founder Shares and any public shares purchased during or after the Public Offering in favor of the Business Combination.
 
Redemption – Although the initial stockholders have waived their redemption rights with respect to the Founder Shares if the Company fails to complete the Business Combination within the prescribed time frame, they will be entitled to redemption rights with respect to any public shares they may own.
 
Contingent Forward Purchase
 
The Macquarie sponsor has committed to purchase, and the Company has committed to sell, 4,000,000 units on the same terms as the sale of units in the Public Offering (except for certain transfer restrictions) at $10.00 per unit, in a private placement for gross proceeds of approximately $40,000,000 to occur concurrently with the consummation of the Business Combination. The funds will be used as part of consideration to the sellers in the Business Combination; any excess funds from this private placement will be used for working capital in the post-transaction company. This commitment is independent of the percentage of stockholders selecting to redeem their shares and provides the Company with a minimum funding level for the Business Combination. In exchange for this commitment, the Company has agreed to issue to the Macquarie sponsor 1,000,000 Class F Founder Shares at the closing of the Business Combination and such private placement.
 
Private Placement Warrants
 
The Sponsors have purchased from the Company an aggregate of 12,000,000 warrants at a price of $0.50 per warrant (a purchase price of $6,000,000) 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 Class A common stock at $5.75 per half share. The purchase price of the Private Placement Warrants was added to the proceeds from the Public Offering held in the Trust Account pending completion of the Business Combination.
 
The Private Placement Warrants (including the Class A 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 Sponsors or their permitted transferees. If the Private Placement Warrants are held by someone other than the Sponsors or their 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 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 the 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 Units (and underlying securities) and Founder Shares purchased in the Contingent Forward Purchase hold similar registration rights. 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 Note Payable
 
Apple Orange LLC, a Terrapin sponsor, had loaned the Company $200,000 by the issuance of an unsecured promissory note (the “Note”) for $200,000 to cover expenses related to the Public Offering. This Note was non-interest bearing and payable on the earlier of September 30, 2014 or out of the proceeds from the Public Offering. The Note was repaid in full on July 22, 2014.
 
Expense Advance Agreement
 
On July 16, 2014, the Sponsors entered into an agreement to advance to the Company, as may be requested by the Company, up to $500,000 each, for an aggregate of $1,000,000, in working capital loans in the form of promissory notes to be provided to fund expenses relating to investigating and selecting a target business and other working capital requirements prior to the Business Combination. Such note(s) shall bear no interest and shall be convertible into Public Warrants at a price of $0.50 at the option of the note holder. At September 30, 2014, no balance was due under this agreement.
 
Administrative Service Agreement
 
Commencing on July 17, 2014, the Company has agreed to pay $10,000 a month for office space, administrative services and secretarial support to Terrapin Partners LLC, an affiliate of the Terrapin sponsor. Upon the completion of the Business Combination or the liquidation of the Company, the Company will cease paying these monthly fees.
XML 31 R11.htm IDEA: XBRL DOCUMENT v2.4.0.8
PUBLIC OFFERING
9 Months Ended
Sep. 30, 2014
Public Offering [Abstract]  
Public Offering Disclosure [Text Block]
4.
PUBLIC OFFERING
 
On July 22, 2014, the Company sold 21,275,000 units at a price of $10.00 per unit (the “Public Units’) in the Public Offering, including the sale of units upon full exercise of the underwriters’ overallotment option. Each Unit consists of one share of the Company’s Class A common stock, $0.0001 par value per share , and one redeemable Class A common stock purchase warrant (the “Public 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 Public Warrant entitles the holder to purchase one-half of one share of Class A common stock at an exercise price of $5.75 per half share. 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 Public 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 Public 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 Public Warrants issued in connection with the 21,275,000 Public Units during the exercise period, there will be no net cash settlement of these Public Warrants and the Pubic 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 $4,250,000 (approximately 2.0%) of the per unit offering price to the underwriters at the closing of the Public Offering, with an additional fee (the “Deferred Discount”) of $7,451,250 (approximately 3.5%) of the gross offering proceeds payable upon the Company’s completion of the 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 32 R23.htm IDEA: XBRL DOCUMENT v2.4.0.8
COMMITMENTS (Details Textual) (USD $)
9 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Commitments And Contingencies Disclosure [Line Items]    
Deferred Underwriting Compensation $ 7,451,250 $ 0
Deferred Underwriting Discount Percentage 3.50%  
XML 33 R19.htm IDEA: XBRL DOCUMENT v2.4.0.8
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS (Details Textual) (USD $)
0 Months Ended 9 Months Ended
Jul. 16, 2014
Sep. 30, 2014
Sep. 30, 2014
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]      
Entity Incorporation, State Country Name   Delaware  
Entity Incorporation, Date of Incorporation   Dec. 27, 2013  
Redemption Percentage Of Shares Of Common Stock 100.00%    
Public Shares Redemption, Basis   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  
Proceeds from Issuance of Private Placement $ 6,000,000 $ 6,000,000 $ 6,000,000
Payments For Principal Deposited In Trust Account $ 212,750,000 $ 212,750,000 $ 212,750,000
Business Acquisition, Planned Restructuring Activities, Description   (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 and funds released for working capital (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 Companys net assets to its remaining stockholders, as part of its plan of dissolution and liquidation  
XML 34 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
FAIR VALUE MEASUREMENTS
9 Months Ended
Sep. 30, 2014
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]
8.
FAIR VALUE MEASUREMENTS
 
The Company complies with ASC 820, “Fair Value Measurement”, 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 adoption of ASC 820 did not have an impact on the Company’s financial position or results of operations.
 
The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of September 30, 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,
2013
(unaudited)
 
Quoted Prices
in Active
Markets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Other
Unobservable
Inputs
(Level 3)
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted cash equivalents held in Trust Account
 
$
212,750,003
 
$
212,750,003
 
$
-
 
$
-
 
XML 35 R13.htm IDEA: XBRL DOCUMENT v2.4.0.8
COMMITMENTS
9 Months Ended
Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]
6.
COMMITMENTS
 
The Company is committed to pay the Deferred Discount totaling $7,451,250 (approximately 3.5%) of the gross offering proceeds of the Public Offering, to the underwriters upon the Company’s consummation of the 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 36 R14.htm IDEA: XBRL DOCUMENT v2.4.0.8
TRUST ACCOUNT
9 Months Ended
Sep. 30, 2014
Trust Account [Abstract]  
Trust Account [Text Block]
7.
TRUST ACCOUNT
 
A total of $212,750,000, which includes $206,750,000 of the net proceeds from the Public Offering and $6,000,000 from the sale of the Private Placement Warrants, has been placed in the Trust Account. As of September 30, 2014, the balance in the Trust Account was $212,750,003.
XML 37 R16.htm IDEA: XBRL DOCUMENT v2.4.0.8
STOCKHOLDERS' EQUITY
9 Months Ended
Sep. 30, 2014
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
9.
STOCKHOLDERS’ EQUITY
 
On May 19, 2014, the Company implemented an approximate 1.0131-for-1 stock split, re-characterized its Founder Shares as shares of Class F common stock, and authorized the issuance of Class A common stock and undesignated common stock.
 
Common Stock
 
Class A Common Stock  — The Company is authorized to issue 90,000,000 shares of Class A common stock with a par value of $0.0001 per share. Holders of the Company’s Class A common stock are entitled to one vote for each Class A common share. At September 30, 2014, there were 21,275,000 shares of Class A common stock issued and outstanding, which includes 20,146,971 shares subject to possible redemption.
 
Class F Common Stock  — The Company is authorized to issue 10,000,000 shares of Class F common stock with a par value of $0.0001 per share. Holders of the Company’s Class F common stock are entitled to one vote for each Class F common share. Shares of Class F common stock are convertible into shares of Class A common stock at a ratio of one-for-one. In the case that additional shares of Class A common stock, or equity-linked securities, are deemed issued in excess of the amounts offered in the Public Offering and related to the closing of the Business Combination, shares of Class F common stock are subject to future modification to provide for an adjustment to the ratio by which they shall convert into shares of Class A common stock. Such adjustment will result in additional shares of Class A common stock issuable upon the conversion of Class F common stock. The number of shares of Class A common stock issuable upon conversion of all shares of Class F common stock will equal, in the aggregate, 20% of the total number of all shares of Class A common stock sold in the Public Offering plus all common shares or equity-linked securities deemed to be issued in connection with the Business Combination, excluding any shares or equity-linked securities issued, or issuable, to any seller in the Business Combination or pursuant to warrants issued to the Sponsors plus Class F common stock and the Class A common stock (but not the warrants) issued pursuant to the forward purchase contract with the Macquarie sponsor. At September 30, 2014, there were 5,318,750 shares of Class F common stock issued and outstanding.
 
Common Stock  — The Company is authorized to issue 10,000,000 shares of undesignated common stock with a par value of $0.0001 per share 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, 2014, there were no shares of undesignated common stock issued and outstanding.
 
Preferred Stock
 
Preferred Stock —  The Company is authorized to issue 10,000,000 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, 2014, there were no shares of preferred stock issued and outstanding.
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PUBLIC OFFERING (Details Textual) (USD $)
9 Months Ended 9 Months Ended 9 Months Ended 1 Months Ended
Sep. 30, 2014
Dec. 31, 2013
Sep. 30, 2014
Common Class A [Member]
Dec. 31, 2013
Common Class A [Member]
Sep. 30, 2014
Public Offering [Member]
Jul. 22, 2014
Public Offering [Member]
Common Class A [Member]
Public Offering Disclosure [Line Items]            
Stock Issued During Period, Shares, New Issues     21,275,000     21,275,000
Sale of Stock, Price Per Share           $ 10.00
Common Stock, Par or Stated Value Per Share $ 0.0001 $ 0.0001 $ 0.0001 $ 0.0001   $ 0.0001
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 5.75          
Class Of Warrant Or Right Redemption Description         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 Companys 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  
Underwriting Discount $ 4,250,000          
Deferred Underwriting Compensation $ 7,451,250 $ 0        
Underwriting Discount Percentage 2.00%          
Deferred Underwriting Discount Percentage 3.50%          
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STOCKHOLDERS' EQUITY (Details Textual) (USD $)
1 Months Ended 9 Months Ended 9 Months Ended
May 19, 2014
Sep. 30, 2014
Dec. 31, 2013
Sep. 30, 2014
Common Class A [Member]
Dec. 31, 2013
Common Class A [Member]
Sep. 30, 2014
Common Class A [Member]
Common Stock Subject to Mandatory Redemption [Member]
Dec. 31, 2013
Common Class A [Member]
Common Stock Subject to Mandatory Redemption [Member]
Sep. 30, 2014
Common Class F [Member]
Dec. 31, 2013
Common Class F [Member]
Class of Stock [Line Items]                  
Stockholders' Equity Note, Stock Split 1.0131-for-1                
Common Stock, Shares Authorized   10,000,000 10,000,000 90,000,000 90,000,000     10,000,000 10,000,000
Common Stock, Par or Stated Value Per Share   $ 0.0001 $ 0.0001 $ 0.0001 $ 0.0001     $ 0.0001 $ 0.0001
Common Stock, Voting Rights       Holders of the Companys Class A common stock are entitled to one vote for each Class A common share       Holders of the Companys Class F common stock are entitled to one vote for each Class F common share  
Common Stock, Shares, Issued Including Redemption       21,275,000          
Common Stock, Shares, Outstanding Including Redemption       21,275,000          
Common Stock, Shares, Issued   0 0 1,128,029 1,128,029 20,146,971 20,146,971 5,318,750 5,318,750
Common Stock, Shares, Outstanding   0 0 1,128,029 1,128,029     5,318,750 5,318,750
Common Stock, Conversion Basis               Shares of Class F common stock are convertible into shares of Class A common stock at a ratio of one-for-one  
Preferred Stock, Shares Authorized   10,000,000 10,000,000            
Preferred Stock, Shares Issued   0 0            
Preferred Stock, Shares Outstanding   0 0            
Common Stock Conversion, Description               The number of shares of Class A common stock issuable upon conversion of all shares of Class F common stock will equal, in the aggregate, 20% of the total number of all shares of Class A common stock sold in the Public Offering plus all common shares or equity-linked securities deemed to be issued in connection with the Business Combination, excluding any shares or equity-linked securities issued, or issuable, to any seller in the Business Combination or pursuant to warrants issued to the Sponsors plus Class F common stock and the Class A common stock (but not the warrants) issued pursuant to the forward purchase contract with the Macquarie sponsor  
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STATEMENT OF STOCKHOLDERS' EQUITY (USD $)
Total
Common Class A [Member]
Common Class F [Member]
Additional Paid-in Capital [Member]
Deficit Accumulated During the Development Stage [Member]
Sale of common stock issued to initial stockholders at approximately $0.00465 per share at Dec. 31, 2013 $ 25,000 $ 0 $ 532 $ 24,468 $ 0
Sale of common stock issued to initial stockholders at approximately $0.00465 per share (in shares) at Dec. 31, 2013   0 5,318,750    
Proceeds from Public Offering on July 22, 2014 of 21,275,000 shares of common stock 212,750,000 2,128   212,747,872 0
Proceeds from Public Offering on July 22, 2014 of 21,275,000 shares of common stock (in shares)   21,275,000      
Proceeds from Public Offering subject to possible redemption (at $10.00 per share) (201,469,710) (2,015)   (201,467,695)  
Proceeds from Public Offering subject to possible redemption (at $10.00 per share) (in shares)   (20,146,971)      
Underwriter's fee and offering expenses (12,213,920) 0   (12,213,920) 0
Proceeds from private placement of 12,000,000 warrants on July 22, 2014 6,000,000 0   6,000,000 0
Net loss attributable to common shares (91,366) 0 0 0 (91,366)
Balances (unaudited) at Sep. 30, 2014 $ 5,000,004 $ 113 $ 532 $ 5,090,725 $ (91,366)
Balances (unaudited) (in shares) at Sep. 30, 2014   1,128,029 5,318,750    
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
9 Months Ended
Sep. 30, 2014
Accounting Policies [Abstract]  
Significant Accounting Policies [Text Block]
3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
Basis of presentation
 
The accompanying financial statements are presented in U.S. dollars in conformity with GAAP and pursuant to the rules and regulations of the SEC. The accompanying financial statements recognize December 31, 2013, the date of initial funding, as the Company’s date of inception.
 
Development stage company
 
The Company complies with the reporting requirements of FASB ASC Topic 915, “Development Stage Entities”. At September 30, 2014, the Company has not commenced any operations nor generated revenue to date. All activity through September 30, 2014 relates to the Company’s formation, preparation for the Public Offering, and search for a target for the Business Combination. The Company will not generate any operating revenues until after completion of a Business Combination, at the earliest. Subsequent to the consummation of the Public Offering, the Company is generating non-operating income in the form of interest income on the designated Trust Account.
 
Net loss per common share
 
Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss per share by the weighted average number of shares of common stock outstanding, 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, 2014, the Company had outstanding warrants to purchase 16,637,500 shares of 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. Therefore, 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 concentration 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.
 
Fair value of financial instruments
 
The fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying balance sheets, primarily due to their short-term nature.
 
Use of estimates
 
The preparation of financial statements in conformity with GAAP requires 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.
 
Deferred offering costs
 
Deferred offering costs consist of legal and accounting fees incurred through the balance sheet date that are directly related to the Public Offering. Upon consummation of the Public Offering on July 22, 2014, offering costs of approximately $12,214,000 (including approximately $11,700,000 in underwriter fees) were incurred and have been charged to stockholders' equity as of September 30, 2014.
 
Common Stock Subject to Possible Redemption
 
As discussed in Note 4, all of the 21,275,000 shares of Class A common stock sold as part of the units in the Public Offering contain a redemption feature which allows for the redemption of shares of Class A common stock under the Company’s liquidation, tender offer, or 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. Accordingly, at September 30, 2014, 20,146,971 of the 21,275,000 public shares were classified outside of permanent equity at its redemption value.
 
Income taxes
 
The Company complies with the accounting and reporting requirements of FASB ASC Topic 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for 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.
 
FASB ASC Topic 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 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 benefits as income tax expense. There were no unrecognized tax benefits as of September 30, 2014. No amounts were accrued for the payment of interest and penalties at September 30, 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, U.S. 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 among various tax jurisdictions and compliance with U.S. federal, U.S. state and 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.
  
Recently issued accounting standards
 
In June 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-10. The amendments in ASU 2014-10 are effective for public business entities for annual reporting periods beginning after December 15, 2014 and remove all incremental financial reporting requirements from U.S. GAAP for development stage entities, including the removal of Topic 915, Development Stage Entities, from the FASB Accounting Standards Codification. In addition, the ASU: (a) adds an example disclosure in Topic 275, Risks and Uncertainties, to illustrate one way that an entity that has not begun planned principal operations could provide information about the risks and uncertainties related to the company’s current activities; and (b) removes an exception provided to development stage entities in Topic 810, Consolidation, for determining whether an entity is a variable interest entity.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $)
9 Months Ended
Sep. 30, 2014
Jul. 22, 2014
Dec. 31, 2013
Accounting Policies [Line Items]      
Deferred Offering Costs   $ 12,214,000  
Class of Warrant or Right, Outstanding 16,637,500    
Concentration Risk, Credit Risk, Financial Instrument, Maximum Exposure 250,000    
Underwriter Fees $ 11,700,000    
Public Shares Redemption, Basis 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    
Common Stock, Shares, Issued 0   0
Common Class A [Member]
     
Accounting Policies [Line Items]      
Stock Issued During Period, Shares, New Issues 21,275,000    
Common Stock, Shares, Issued 1,128,029   1,128,029
Common Class A [Member] | Common Stock Subject to Mandatory Redemption [Member]
     
Accounting Policies [Line Items]      
Common Stock, Shares, Issued 20,146,971   20,146,971