Company: TLGYF
Filing Date: 2025-09-29
Form Type: S-4
Source: 0001213900-25-092592
Chunk: 270

Company: TLGY ACQUISITION CORP
Filing Date: 2025-09-29
Form: S-4
Chunk 270
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 the proposed terms that TLGY had provided Company J on February 4, 2025 and some lingering issues that both sides had with such terms, including the valuation for the validator business and which party would bear the risk of paying transaction costs if the transaction were to terminate. Shortly after the April 1, 2025 call with Company J, Mr.Cho and Mr.Chen discussed over the phone the interaction with Company J. Mr.Chen expressed concern that Company J remained non -committaltowards a transaction and was indirectly requiring TLGY to bear the entire transaction risk. They also discussed alternative transactions which would potentially result in less dilution to Public Shareholders than a deal with Company J, including creating their own validator business that could serve as a potential business combination target. It was concluded that the TLGY team should prioritize securing a non -bindingLOI with the Ethena Foundation, and continue discussions with Company J and other node validator operators to either acquire a validator or partner and create a new entity. On April 2, 2025, TLGY sent an initial draft of a non -bindingLOI to the Ethena Foundation. The non -bindingLOI contemplated TLGY merging with a validator business to be identified and the Ethena Foundation entering into a 5 -yearpartnership agreement with the combined company that would include, among other things, the Ethena Foundation contributing up to $100 million of ENA Token priced at a 50% discount to the spot price of ENA at transaction closing, an ongoing right of first refusal (“ ROFR”) to participate in any future discounted token sale by the Ethena Foundation, subject to a mutually agreed cap, and for any capital raised through a PIPE to be able to be used to acquire ENA Token from the Ethena Foundation at the same 50% discount. From a governance perspective, TLGY would retain the ability to nominate all members of the board of the combined company, and a dual class share structure would be implemented to allow the Current Sponsors and their affiliates to retain voting control of the combined company. The non -bindingLOI also contemplated a 90 -dayexclusivity period. Between April 3 and April 9, 2025, the parties continued to negotiate the terms of the non -bindingLOI. Key points included the size of the discount with respect to the locked ENA tokens purchase, replacing the ROFR with a right of participation (“ ROP”) for future token sales, and changes to the