2.	Merger

On the Closing Date, Hydra and Inspired consummated the previously announced Merger contemplated by the Sale Agreement. The Sale Agreement provided for, among other things, the acquisition of all of the outstanding equity and shareholder loan notes of Inspired by Hydra pursuant to the Merger. In connection with the Merger, Hydra issued 11,801,369 shares of common stock.

Immediately following the Merger, there were 20,199,391 shares of common stock outstanding and warrants to purchase 9,539,615 shares of common stock.

Warrants

Prior to the Merger, Hydra had 19,079,230 outstanding warrants to purchase an aggregate of 9,539,615 shares of the Company’s common stock. Each warrant entitles its holder to purchase one-half of one share of the Company’s common stock at an exercise price of $11.50 per whole share and will expire on December 23, 2021, or earlier upon liquidation by the Company. The warrants will become exercisable 30 days after the Closing Date and have a remaining contractual term of five years. With respect to 8,000,000 warrants to purchase 4,000,000 shares of common stock (the “Public Warrants”), the Company may redeem the Public Warrants at a price of $0.01 per warrant if the last sale price of the common stock equals or exceeds $24.00 per share for any 20 trading days within a 30 trading day period. With respect to 11,079,230 warrants to purchase 5,539,615 shares of common stock (“Private Placement Warrants”), the Company may not redeem the outstanding warrants so long as they are held by the initial purchaser or such purchasers’ permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or such purchasers’ 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.