Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
On March 29, 2021, Group Nine Acquisition Corp. (the "Company") issued an
unsecured promissory note (the "Note") in the principal amount of $1,000,000 to
Group Nine SPAC LLC (the "Sponsor"). The Note does not bear interest and is
repayable in full upon consummation of the Company's initial business
combination (a "Business Combination"). If the Company does not complete a
Business Combination, the Note shall not be repaid and all amounts owed under it
will be forgiven. Upon the consummation of a Business Combination, the Sponsor
shall have the option, but not the obligation, to convert all or a portion of
the unpaid principal balance of the Note into that number of warrants to
purchase one share of Class A Common Stock, $0.0001 par value per share, of the
Company (the "Working Capital Warrants") equal to the principal amount of the
Note so converted divided by $1.50. The terms of the Working Capital Warrants
will be identical to the terms of the warrants issued by the Company to the
Sponsor in a private placement that took place simultaneously with the Company's
initial public offering. The Note is subject to customary events of default, the
occurrence of which automatically trigger the unpaid principal balance of the
Note and all other sums payable with regard to the Note becoming immediately due
and payable.
The Note was issued pursuant to the exemption from registration contained in
Section 4(a)(2) of the Securities Act of 1933, as amended.
The Note is attached as Exhibit 10.1 to this Current Report on Form 8-K and is
incorporated herein by reference. The disclosure set forth in this Item 2.03 is
intended to be a summary only and is qualified in its entirety by reference to
the Note.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description of Exhibits
10.1 Promissory Note, dated March 29, 2021, issued by Group Nine
Acquisition Corp. to Group Nine SPAC LLC
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