QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification Number) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
one-half of one redeemable warrant |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
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September 30, 2021 |
December 31, 2020 |
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(unaudited) |
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Assets |
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Current assets: |
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Cash |
$ | $ | — | |||||
Prepaid expenses and other |
— | |||||||
Deferred offering costs |
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Total current assets |
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Investments held in Trust Account |
— | |||||||
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Total Assets |
$ | $ | ||||||
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Liabilities and Shareholders’ Deficit |
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Current liabilities: |
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Accrued offering costs and expenses |
$ | $ | ||||||
Due to related party |
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Promissory note—related party |
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Total current liabilities |
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Warrant liabilities |
— | |||||||
Deferred underwriting discount |
— | |||||||
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Total Liabilities |
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Commitments and Contingencies |
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Class A ordinary shares subject to possible redemption, |
— | |||||||
Shareholders’ Deficit: |
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Preference shares, $ |
— | |||||||
Class A ordinary shares, $ |
— | |||||||
Class B ordinary shares, $ |
(1) | |||||||
Additional paid-in capital |
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Accumulated deficit |
( |
) | ( |
) | ||||
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Total Shareholders’ Deficit |
( |
) | ( |
) | ||||
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Total Liabilities and Shareholders’ Deficit |
$ | $ | ||||||
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(1) | Included an aggregate of up to |
For the Three Months Ended September 30, 2021 |
For the Nine Months Ended September 30, 2021 |
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Formation and operating costs |
$ | $ | ||||||
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Loss from operations |
( |
) | ( |
) | ||||
Other income (expense) |
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Interest earned on investments held in Trust Account |
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Change in fair value of warrant liabilities |
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Offering costs allocated to warrants |
— | ( |
) | |||||
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Total other income, net |
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Net income |
$ | $ | ||||||
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Weighted average shares outstanding of Class A ordinary shares |
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Basic and diluted net income per share, Class A ordinary shares |
$ | $ | ||||||
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Weighted average shares outstanding of Class B ordinary shares |
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Basic and diluted net income per share, Class B ordinary shares |
$ | $ | ||||||
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Class A Ordinary Shares |
Class B Ordinary Shares |
Additional Paid-in Capital |
Accumulated Deficit |
Total Shareholders’ Deficit |
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Shares |
Amount |
Shares |
Amount |
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Balance as of December 31, 2020 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Cash received in excess of fair value of private placement warrants |
— | — | — | — | — | |||||||||||||||||||||||
Net loss |
— | — | ( |
) | ( |
) | ||||||||||||||||||||||
Accretion of Class A ordinary shares subject to possible redemption amount |
— | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
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Balance as of March 31, 2021 (unaudited) |
$ |
$ |
$ | $ |
( |
) |
$ |
( |
) | |||||||||||||||||||
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Net income |
— | — | ||||||||||||||||||||||||||
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Balance as of June 30, 2021 (unaudited) |
$ |
$ |
$ | $ |
( |
) |
$ |
( |
) | |||||||||||||||||||
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Net income |
— | — |
— | — |
— |
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Balance as of September 30, 2021 (unaudited) |
$ |
$ |
$ | $ |
( |
) |
$ |
( |
) | |||||||||||||||||||
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Cash flows from Operating Activities: |
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Net income |
$ | |||
Adjustments to reconcile net income to net cash used in operating activities: |
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Offering costs allocated to warrants |
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Change in fair value of warrant liabilities |
( |
) | ||
Interest earned on investments held in Trust Account |
( |
) | ||
Changes in operating assets and liabilities: |
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Prepaid expenses and other |
( |
) | ||
Accrued offering costs and expenses |
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Due to related party |
( |
) | ||
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Net cash used in operating activities |
( |
) | ||
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Cash Flows from Investing Activities: |
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Cash deposited into Trust Account |
( |
) | ||
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Net cash used in investing activities |
( |
) | ||
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Cash flows from Financing Activities: |
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Proceeds from Initial Public Offering, net of underwriters’ fees |
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Proceeds from private placement |
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Proceeds from promissory note to related party |
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Repayment of promissory note to related party |
( |
) | ||
Payments of offering costs |
( |
) | ||
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Net cash provided by financing activities |
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Net change in cash |
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Cash, beginning of the period |
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Cash, end of the period |
$ | |||
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Supplemental disclosure of noncash investing and financing activities: |
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Deferred underwriting commissions charged to additional paid in capital |
$ | |||
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• | Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; |
• | Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and |
• | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
For the Three Months Ended September 30, 2021 |
For the Nine Months Ended September 30, 2021 |
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Class A |
Class B |
Class A |
Class B |
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Basic and diluted net income per share: |
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Numerator: |
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Allocation of net income |
$ | $ | |
$ | $ | |
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Denominator: |
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Weighted-average shares outstanding |
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Basic and diluted net income per share |
$ | $ | $ | $ |
• | in whole and not in part; |
• | at a price of $ |
• | upon no less than redemption (the “30-day redemption period”) to each warrant holder; and |
• | if, and only if, the last reported sale price of the Class A ordinary shares for any within a period ending three business days before the Company sends the notice of redemption to the warrant holders (the “Reference Value”) equals or exceeds $18.00 per share (as adjusted for share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like). |
• | in whole and not in part; |
• | at $ |
• | if, and only if, the Reference Value (as defined above under “Redemption of Warrants When the Price per Class A Ordinary Share Equals or Exceeds $18.00”) equals or exceeds $ for share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like); and |
• | if the Reference Value is less than $18.00 per share (as adjusted for share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like) the Private Placement Warrants must also be concurrently called for redemption on the same terms as the outstanding Public Warrants, as described above. |
Carrying Value/Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value as of September 30, 2021 |
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U.S. Treasury Securities |
$ | $ | $ | ( |
) | $ | ||||||||||
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$ | $ | $ | ( |
) | $ | |||||||||||
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Total |
Quoted Prices In Active Markets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Other Unobservable Inputs (Level 3) |
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Assets: |
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U.S. Money Market held in Trust Account |
$ | $ | $ | $ | ||||||||||||
U.S. Treasury Securities held in Trust Account |
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$ | $ | $ | $ | |||||||||||||
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Liabilities: |
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Warrant Liability – Public Warrants |
$ | $ | $ | $ | ||||||||||||
Warrant Liability – Private Placement Warrants |
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$ | $ | $ | $ | |||||||||||||
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Input |
February 23, 2021 (Initial Measurement) |
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Expected term (years) |
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Expected volatility |
% | |||
Risk-free interest rate |
% | |||
Ordinary share price |
$ | |||
Dividend yield |
% |
Input |
September 30, 2021 |
|||
Expected term (years) |
||||
Expected volatility |
% | |||
Risk-free interest rate |
% | |||
Ordinary share price |
$ | |||
Dividend yield |
% |
Warrant Liability |
||||
Fair value as of January 1, 2021 |
$ | |||
Initial fair value of warrant liabilities upon issuance at IPO |
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Change in fair value |
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|
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Fair value as of March 31, 2021 |
$ | |||
Transfer out of Level 3 to Level 1 |
( |
) | ||
Change in fair value |
( |
) | ||
|
|
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Fair value as of June 30, 2021 |
$ | |||
Change in fair value |
( |
) | ||
|
|
|||
Fair value as of September 30, 2021 |
$ | |||
|
|
Gross proceeds from IPO |
$ | |||
Less: |
||||
Proceeds allocated to Public Warrants |
( |
) | ||
Class A ordinary shares issuance costs |
( |
) | ||
|
|
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Plus: |
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Accretion of carrying value to redemption value |
||||
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|
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Class A ordinary shares subject to possible redemption |
$ | |||
|
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• | may significantly dilute the equity interest of investors in this offering, which dilution would increase if the anti-dilution provisions in the Class B ordinary shares resulted in the issuance of Class A ordinary shares on a greater than one-to-one basis |
• | may subordinate the rights of holders of Class A ordinary shares if preferred shares are issued with rights senior to those afforded our Class A ordinary shares; |
• | could cause a change in control if a substantial number of our Class A ordinary shares are issued, which may affect, among other things, our ability to use our net operating loss carry forwards, if any, and could result in the resignation or removal of our present officers and directors; |
• | may have the effect of delaying or preventing a change of control of us by diluting the share ownership or voting rights of a person seeking to obtain control of us; and |
• | may adversely affect prevailing market prices for our Class A ordinary shares and/or warrants. |
• | default and foreclosure on our assets if our operating revenues after an initial business combination are insufficient to repay our debt obligations; |
• | acceleration of our obligations to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant; |
• | our immediate payment of all principal and accrued interest, if any, if the debt security is payable on demand; |
• | our inability to obtain necessary additional financing if the debt security contains covenants restricting our ability to obtain such financing while the debt security is outstanding; |
• | our inability to pay dividends on our Class A ordinary shares; |
• | using a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for dividends on our Class A ordinary shares if declared, expenses, capital expenditures, acquisitions and other general corporate purposes; |
• | limitations on our flexibility in planning for and reacting to changes in our business and in the industry in which we operate; |
• | increased vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation; and |
• | limitations on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy and other purposes and other disadvantages compared to our competitors who have less debt. |
* | Filed herewith. |
** | These certifications are furnished to the SEC pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. |
By: | /s/ Rahim Lakhani | |||
Name: | Rahim Lakhani | |||
Title: | Chief Financial Officer |