Company: PAII-WT
Filing Date: 2025-09-02
Form Type: 10-Q
Source: 0001213900-25-083487
Chunk: 28

Company: Pyrophyte Acquisition Corp. II
Filing Date: 2025-09-02
Form: 10-Q
Item: Item 8
Chunk 28
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 of the initial public offering and the private placement of the private placement warrants, the proceeds of the sale
of our shares in connection with our initial business combination (pursuant to forward purchase agreements or backstop agreements we may
enter into following the consummation of the initial public offering or otherwise), shares issued to the owners of the target, debt issued
to bank or other lenders or the owners of the target, other securities issuances, or a combination of the foregoing or other sources.

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The issuance of additional shares in connection with a business combination
to the owners of the target or other investors:

➤may significantly dilute the equity interest of investors in
the initial public 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 upon conversion of the Class B ordinary
shares;

➤may subordinate the rights of holders of Class A ordinary
shares if preference 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.

Similarly, if we issue debt securities or otherwise incur significant
debt to bank or other lenders or the owners of a target, it could result in:

➤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;