References to the "Company," "us," "our" or "we" refer to Maxpro Capital
Acquisition Corp. The following discussion and analysis of our financial
condition and results of operations should be read in conjunction with our
audited financial statements and related notes included herein.
Cautionary Note Regarding Forward-Looking Statements
All statements other than statements of historical fact included in this Report
including, without limitation, statements under this "Management's Discussion
and Analysis of Financial Condition and Results of Operations" regarding the
Company's financial position, business strategy and the plans and objectives of
management for future operations, are forward- looking statements. When used in
this Report, 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.
The following discussion and analysis of our 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.
Overview
We are a blank check company incorporated on June 2, 2021 as a Delaware
corporation and formed for the purpose of entering into a merger, share
exchange, asset acquisition, share purchase, recapitalization, reorganization or
other similar business combination with one or more target businesses. While our
efforts to identify a target business may span many industries and regions
worldwide, we focus our search for prospects within the healthcare and
technology industries. We intend to effectuate our initial Business Combination
using cash from the proceeds of our Initial Public Offering and the private
placement of the Private Units, the proceeds of the sale of our shares in
connection with our initial Business Combination, shares issued to the owners of
the target, debt issued to bank or other lenders or the owners of the target, or
a combination of the foregoing.
We expect to continue to incur significant costs in the pursuit of our initial
Business Combination. We cannot assure you that our plans to complete our
initial Business Combination will be successful.
Results of Operations
We have neither engaged in any operations nor generated any revenues to date.
Our only activities from inception through December 31, 2021 were organizational
activities, those necessary to prepare for our Initial Public Offering,
described below, and, after our Initial Public Offering, identifying a target
company for an initial Business Combination. We do not expect to generate any
operating revenues until after the completion of our initial Business
Combination. We generate non-operating income in the form of interest income on
marketable securities held in the Trust Accounts. We incur expenses as a result
of being a public company (for legal, financial reporting, accounting and
auditing compliance), as well as for due diligence expenses.
For the period from June 2, 2021 (inception) through December 31, 2021, we had a
net loss of $177,386, which consists of expenses of $185,572 offset by interest
on securities held in the trust account of $8,816.
Liquidity and Capital Resources
On October 13, 2021, we consummated our Initial Public Offering of 10,350,000
Units at a price of $10.00 per Unit, at $10.00 per Unit, generating gross
proceeds of $10,350,000. Simultaneously with the closing of our Initial Public
Offering, we consummated the sale of 464,150 Placement Units to the Sponsor at a
price of $10.00 per Unit, generating gross proceeds of $4,641,500.
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For the period from June 2, 2021 (inception) through December 31, 2021, net cash
used in operating activities was $305,363. Net cash used in operations was as a
result of the net loss was $177,386, interest income of $8,186 and changes in
operating assets and liabilities used $119,791 of cash from operating
activities.
For the period from June 2, 2021 (inception) through December 31, 2021, net cash
used in investing activities of $105,052,500 was the result of the amount of net
proceeds from our IPO and Private Placements being deposited into the Trust
Account.
For the period from June 2, 2021 (inception) through December 31, 2021, net cash
provided by financing activities of $105,956,820 was comprised of $103,500,000
in proceeds from the issuance of Units in our IPO, net of the underwriter's
discount paid of $1,811,250 and $4,641,500 in proceeds from the issuance of the
Private Placement Units to our sponsor, $108,666 in proceeds from the issuance
of a promissory note to our sponsor, cash of $25,000 received from our sponsor
for the issuance of Class B ordinary shares offset in part by the payment of
$398,430 for offering costs associated with the IPO and repayment of the
outstanding balance on the promissory note to our sponsor of $108,666.
As of December 31, 2021, we had investments of $105,060,686 held in the Trust
Accounts. We intend to use substantially all of the funds held in the Trust
Accounts, including any amounts representing interest earned on the Trust
Accounts (less taxes paid and deferred underwriting commissions) to complete our
initial Business Combination. We may withdraw interest to pay taxes. During the
period ended December 31, 2021, we did not withdraw any interest earned on the
Trust Accounts. To the extent that our capital stock or debt is used, in whole
or in part, as consideration to complete our initial Business Combination, the
remaining proceeds held in the Trust Accounts will be used as working capital to
finance the operations of the target business or businesses, make other
acquisitions and pursue our growth strategies.
As of December 31, 2021, we had cash of $598,957 outside of the Trust Account.
We intend to use the funds held outside the Trust Accounts primarily to identify
and evaluate target businesses, perform business due diligence on prospective
target businesses, travel to and from the offices, plants or similar locations
of prospective target businesses or their representatives or owners, review
corporate documents and material agreements of prospective target businesses,
and structure, negotiate and complete our initial Business Combination.
In order to fund working capital deficiencies or finance transaction costs in
connection with our initial Business Combination, our Sponsor or an affiliate of
our Sponsor or certain of our officers and directors may, but are not obligated
to, loan us funds as may be required. If we complete our initial Business
Combination, we would repay such loaned amounts. In the event that our initial
Business Combination does not close, we may use a portion of the working capital
held outside the Trust Accounts to repay such loaned amounts but no proceeds
from our Trust Accounts would be used for such repayment. Up to $1,500,000 of
such loans may be convertible into units identical to the Placement Units, at a
price of $10.00 per unit at the option of the lender.
We do not currently believe we will need to raise additional funds in order to
meet the expenditures required for operating our business. However, if our
estimate of the costs of identifying a target business, undertaking in-depth due
diligence and negotiating our initial Business Combination are less than the
actual amount necessary to do so, we may have insufficient funds available to
operate our business prior to our initial Business Combination. Moreover, we may
need to obtain additional financing either to complete our initial Business
Combination or because we become obligated to redeem a significant number of our
Public Shares upon consummation of our initial Business Combination, in which
case we may issue additional securities or incur debt in connection with such
Business Combination. Subject to compliance with applicable securities laws, we
would only complete such financing simultaneously with the completion of our
initial Business Combination. If we are unable to complete our initial Business
Combination because we do not have sufficient funds available to us, we will be
forced to cease operations and liquidate the Trust Accounts. In addition,
following our initial Business Combination, if cash on hand is insufficient, we
may need to obtain additional financing in order to meet our obligations.
Off-Balance Sheet Financing Arrangements
We have no obligations, assets or liabilities, which would be considered
off-balance sheet arrangements as of December 31, 2021. 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 purchased any non-financial assets.
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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
affiliate of the Sponsor a monthly fee up to $10,000 for office space, utilities
and secretarial and administrative support services. We began incurring these
fees on October 13, 2021 and will continue to incur these fees monthly until the
earlier of the completion of the Business Combination and our liquidation.
During the period ended December 31, 2021, the Company recorded and paid fees of
$30,000 pursuant to the agreement.
The underwriters are entitled to a deferred fee of $3,622,500 in the aggregate.
The deferred fee will become payable to the underwriters from the amounts held
in the Trust Accounts solely in the event that the Company completes a Business
Combination, subject to the terms of the underwriting agreement.
Critical Accounting Policies and Practices
A company's accounting policies and practices that are both most important to
the portrayal of the company's financial condition and results, and require
management's most difficult, subjective, or complex judgments, often as a result
of the need to make estimates about the effects of matters that are inherently
uncertain.
Fair Value Measurements
Fair value is defined as the price that would be received for sale of an asset
or paid to transfer of a liability, in an orderly transaction between market
participants at the measurement date. US GAAP establishes a three-tier fair
value hierarchy, which prioritizes the inputs used in measuring fair value. The
hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1 measurements) and the
lowest priority to unobservable inputs (Level 3 measurements). These tiers
include:
? 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.
Recent Accounting Standards
Management does not believe that any other recently issued, but not yet
effective, accounting standards, if currently adopted, would have a material
effect on our financial statements.
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