Company: TACOW
Filing Date: 2025-03-21
Form Type: S-1
Source: 0001829126-25-001978
Chunk: 125

Company: Berto Acquisition Corp.
Filing Date: 2025-03-21
Form: S-1
Chunk 125
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7,750,000 private placement warrants, at $1.00 per warrant. In addition, if our sponsor or an affiliate
of our sponsor or certain of our officers and directors makes any working capital loans, such lender may convert those loans into up
to an additional 1,500,000 private placement warrants, at the price of $1.00 per warrant.

To the extent we issue ordinary
shares to effectuate a business transaction, the potential for the issuance of a substantial number of additional ordinary shares upon
exercise of these warrants could make us a less attractive acquisition vehicle to a target business. Such warrants, when exercised, will
increase the number of issued and outstanding ordinary shares and reduce the value of the ordinary shares issued to complete the business
transaction. Therefore, our warrants may make it more difficult to effectuate a business transaction or increase the cost of acquiring
the target business.

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Because each unit contains one-half of one warrant and only a whole warrant may be exercised, the units may be worth less than units of other special purpose acquisition companies.

Each unit contains one-half of
one warrant. Pursuant to the warrant agreement, no fractional warrants will be issued upon separation of the units, and only whole units
will trade. If, upon exercise of the warrants, a holder would be entitled to receive a fractional interest in a share, we will, upon
exercise, round down to the nearest whole number the number of ordinary shares to be issued to the warrant holder. This is different
from other offerings similar to ours whose units include one ordinary share and one warrant to purchase one whole share. We have established
the components of the units in this way in order to reduce the dilutive effect of the warrants upon completion of a business combination
since the warrants will be exercisable in the aggregate for one-half of the number of shares compared to units that each contain a whole
warrant to purchase one share, thus making us, we believe, a more attractive merger partner for target businesses. Nevertheless, this
unit structure may cause our units to be worth less than if it included a warrant to purchase one whole share.

Our warrant agreement will designate the courts of the State of New York or the United States District Court for the Southern District of New York as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by holders of our warrants, which could limit the ability of warrant holders to obtain a favorable judicial forum for disputes with our company.

Our warrant