Item 1.01 Entry into a Material Definitive Agreement.
As previously announced, on
On the closing of the Business Combination (the "Closing"), and pursuant and
subject to the terms of the Business Combination Agreement, each Class A
ordinary share, par value
On
At Closing, and pursuant to an escrow agreement (the "Escrow Agreement") to be
entered into by Second Merger Sub with
Following the Third Effective Time (as defined in the Business Combination
Agreement), Second Merger Sub has agreed to use its best efforts to cause the
filing of a registration statement, at Second Merger Sub's cost and expense,
with the
If and when any Investor sells the Shares to any third party, upon receipt by the Escrow Agent and the Counterparty of written notice of such sale of Shares (such date, the "Instruction Date"), the Escrow Agent shall release to the Counterparty an amount equal to (i) the Escrowed Property divided by the number of Shares held by such Investor as of the Instruction Date, multiplied by (ii) the number of Shares sold by such Investor pursuant to Section 5(e) of the Purchase Agreements.
The per Share price at which the Investors have the right to sell the Shares to the Counterparty on the Maturity Date is (i) the total amount of the Escrowed Property in the Escrow Account, divided by (ii) the total number of Shares held by the Investors as of the Maturity Date (subject to the Share Purchase Limit). The Investors will notify the Counterparty in writing not less than five Business Days prior to the Maturity Date, specifying the number of Shares that the Counterparty will be required to purchase (the "Shares Sale Notice"). In exchange for the Counterparty's commitment to purchase the Shares (including any Additional Shares) on the Maturity Date, the Investors agree to continue to hold, and not to redeem, the Shares prior to the Closing. Any Investor that fails to timely deliver a Shares Sale Notice shall be deemed to have forfeited its right to sell any Shares (including any Additional Shares) to the Counterparty pursuant to the Purchase Agreements.
The Purchase Agreements contain customary representations, warranties and covenants from the parties thereto. The foregoing descriptions are only a summary of the Purchase Agreements and Escrow Agreement and are qualified in their entirety by reference to the full text of the Purchase Agreements, including the Escrow Agreement, the form of which is included as Exhibit A thereto, which is filed as Exhibit 10.1 hereto and is incorporated by reference herein. SPAC may enter into additional forward purchase agreements, or similar arrangements with other parties, until the date of the Closing.
No Offer or Solicitation
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act, or an exemption therefrom.
Forward-Looking Statements
The information in this communication includes "forward-looking statements"
within the meaning of the "safe harbor" provisions of the United States Private
Securities Litigation Reform Act of 1995. Forward-looking statements may be
identified by the use of words such as "estimate," "plan," "project,"
"forecast," "intend," "will," "expect," "anticipate," "believe," "seek,"
"target" or other similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. These forward-looking
statements include, but are not limited to, the satisfaction of closing
conditions to any business combination and any related financing, including the
issuance of the Shares, the amount of redemption requests made by SPAC's public
stockholders and the completion of the proposed business combination, including
the anticipated structure and closing date of the proposed business combination
and the use of the cash proceeds therefrom; any anticipated shareholder
approvals; and the pro forma ownership of the resulting issuer. These statements
are based on various assumptions, whether or not identified in this
communication, and on the current expectations of New Parent's and SPAC's
management and are not predictions of actual performance. These forward-looking
statements are provided for illustrative purposes only and are not intended to
serve as, and must not be relied on by any investor as, a guarantee, an
assurance, a prediction or a definitive statement of fact or probability. Actual
events and circumstances are difficult or impossible to predict and will differ
from assumptions. Many actual events and circumstances are beyond the control of
New Parent and SPAC. These forward-looking statements are subject to a number of
risks and uncertainties, including but not limited to, the inability of the
parties to successfully or timely consummate the proposed business combination,
including the risk that any required regulatory approvals are not obtained, are
delayed or are subject to unanticipated conditions that could adversely affect
the combined company or the expected benefits of the proposed business
combination or that shareholder approval will not be obtained; the risk that the
transaction may not be completed by SPAC's business combination deadline and the
potential failure to obtain an extension of the business combination deadline if
sought by SPAC; the failure to satisfy the conditions to the consummation of the
proposed transaction, including the adoption of the Business Combination
Agreement by the SPAC's shareholders; the lack of a third party valuation in
determining whether or not to pursue the proposed transaction; the occurrence of
any event, change or other circumstance that could give rise to the termination
of the Business Combination Agreement; the effect of the announcement or
pendency of the proposed transaction on New Parent's business relationships,
operating results, and business generally; risks that the proposed transaction
disrupts current plans and operations of New Parent and potential difficulties
in employee retention as a result of the proposed transaction; the outcome of
any legal proceedings that may be instituted against New Parent, SPAC or the
combined company related to the Business Combination Agreement or the proposed
transaction; the ability to maintain the listing of SPAC's securities on a
national securities exchange; the price of SPAC's securities may be volatile due
to a variety of factors, including changes in the competitive and regulated
industries in which SPAC plans to operate or New Parent operates, variations in
operating performance across competitors, changes in laws and regulations
affecting SPAC's or New Parent's business; New Parent's inability to meet or
exceed its financial projections and changes in the combined capital structure;
changes in general economic conditions, including as a result of the COVID-19
pandemic; the ability to implement business plans, forecasts, and other
expectations after the completion of the proposed transaction, and identify and
realize additional opportunities; changes in domestic and foreign business,
market, financial, political and legal conditions; the occurrence of any event,
change or other circumstance that could give rise to the termination of the
Business Combination Agreement; the outcome of any potential litigation,
government and regulatory proceedings, investigations and inquiries and other
risks and uncertainties indicated from time to time in the final prospectus of
SPAC for its initial public offering and the proxy statement/prospectus to be
filed relating to the proposed business combination or in the future, including
those under "Risk Factors" therein, and in SPAC's other filings with the
Item 9.01. Financial Statements and Exhibits
Exhibit No. Description 10.1 Form of Forward Purchase Agreement by and among SPAC and certain equity holders of SPAC. 104 Cover page Interactive Data File (embedded within the Inline XBRL document)
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