Company: SIMA
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001213900-25-043361
Chunk: 6

Company: SIM Acquisition Corp. I
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 6
---
Trust Account”)
and invested the proceeds in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act. The proceeds
will be held in this manner until the earlier of (i) the consummation of the Company’s Business Combination (ii) the redemption
of any ordinary shares included in the Units being sold in the Initial Public Offering that have been properly tendered in connection
with a shareholder vote to amend the Company’s Amended and Restated Memorandum to modify the substance or timing of its obligation
to redeem 100% of such ordinary shares if it does not complete the Business Combination within 24 months from the closing of the Initial
Public Offering (the “Completion Window”); and (iii) the Company’s failure to consummate a Business Combination within
the prescribed time. Placing funds in the Trust Account may not protect those funds from third party claims against the Company. Although
the Company will seek to have all vendors, service providers (except the Company’s independent registered public accounting firm),
prospective target businesses or other entities it engages, execute agreements with the Company waiving any claim of any kind in or to
any monies held in the Trust Account, there is no guarantee that such persons will execute such agreements. There can be no assurance
that it will be able to satisfy those obligations should they arise. The remaining net proceeds (not held in the Trust Account) will be
used to pay for business, legal and accounting due diligence on prospective acquisitions and continuing general and administrative expenses.
Additionally, certain interest earned on the Trust Account balance may be released to the Company to pay the Company’s tax obligations
and trust administration expenses.

5

Initial Business Combination

The Company’s management
has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering, although substantially
all of the net proceeds of the Initial Public Offering are intended to be generally applied toward consummating a Business Combination.
The Business Combination must occur with one or more target businesses that together have an aggregate fair market value of at least 80%
of the assets held in the Trust Account (excluding the deferred underwriting commissions and taxes payable on income earned on the Trust
Account) at the time of the agreement to enter into the Business Combination. Furthermore, there is no assurance that the Company will
be able to successfully effect a Business Combination.

 The Company, after signing
a definitive agreement for the acquisition of a target business, is required to provide shareholders who