Company: TLGYF
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001213900-25-125608
Chunk: 291

Company: TLGY ACQUISITION CORP
Filing Date: 2025-12-29
Form: S-4/A
Chunk 291
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 node validator company to be acquired. Based on TLGY’s review of other recent node validator acquisitions, which were in the $5 to $10million range, TLGY proposed valuing SC Assets at $7 million, resulting in approximately 6.6% dilution to public shareholders, assuming no redemptions and a contemplated $100million PIPE. TLGY also considered recently announced digital asset treasury company transactions with Nasdaq and NYSE -listedcompanies that generally offered higher valuations to the sponsors who facilitated the crypto strategy for the listed company. Examples included a bitcoin treasury strategy company announced on May12, 2025, that allocated $25 million in value to the sponsors, resulting in approximately 4.5% dilution to PIPE and public shareholders, and a Solana treasury strategy company announced on April21, 2025 that allocated its sponsors a 1.75% annual asset management fee on the $100 million in capital it raised, which TLGY estimated had a net present value of $17.5 million, resulting in approximately 16.9% dilution to PIPE and public shareholders. Ethena Labs indicated that it thought the SC Assets valuation was too high and TLGY responded that it believed the $7 million value was fair given the dollar valuations from the recent transactions noted above as well as TLGY’s recent negotiations with Company J where they required at least $20 million upfront for their validator business. During these discussions, TLGY also considered 116 the impact of the proposed valuation on dilution to TLGY’s public shareholders and sought to negotiate a valuation that would limit dilution to public shareholders relative to comparable digital asset and validator transactions. In addition, TLGY noted the valuation was reasonable to PIPE and public shareholders as the potential dilution from SC Assets was on the lower -endof recent precedent transactions. After several further discussions, Ethena agreed to a valuation for SC Assets of $7 million, subject to the approval of the Ethena Foundation. • Token Purchase Discount:Ethena Lab’s proposal specified a discount range of 30% -35% for token purchases from the Ethena Foundation based on a 30 -dayVWAP. TLGY responded with a fixed discount of 35%. Over the course of several discussions, the parties agreed on a final discount of 30% for the purchase of locked ENA tokens from the Ethena Foundation. • Post -Closing Governance and Management:The Ethena Foundation proposed that in addition to the Ethena Foundation retaining majority voting