Company: PAX
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025640
Chunk: 307

Company: Patria Investments Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 307
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 dollars - US$, except where otherwise stated)       
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c. Other financial instruments

The fair value of other financial instruments is comprised of options, warrants and energy trading contracts and is determined in accordance with the following criteria:

• Options - option contracts provide the purchaser the right to buy the instrument at a pre-determined base price at a future date. The valuation adjustment from options valuations are recognized in net financial income/(expense) (refer to note 27).

Warrants - the warrant liabilities issued by PLAO contain features that qualify as embedded derivatives. The fair value for December 31, 2023, has been measured based on the listed market price of such warrants. The warrants were delisted from The Nasdaq Global Market at the opening of business on November 18, 2024, due to PLAO’s non-compliance with certain Nasdaq Listing Rules. The fair value of US$ 0.63

• Energy trading contracts - mark-to-market (“ MtM”) valuation based on ruling energy prices in Brazil. The MtM adjustments together with realized gains and losses are recognized in other income/(expenses) (refer to note 26).

Pertinent details of options and warrants are as follows:

SPAC - warrant liabilities

On March 14, 2022, PLAO concluded its IPO of 23,000,000 3,000,000 one 0.0001 10.00 230,000,000

Each whole Warrant entitles the holder thereof to purchase one SPAC Class A Ordinary Share at a price of $ 11.50 30

The Group recognizes the Warrants as financial liabilities at fair value and remeasures the Warrants at fair value at each reporting period, and any change in fair value is recognized in the Group’s consolidated statement of profit or loss. The expected life of the Warrants is assumed to be equivalent to their remaining contractual term. The dividend rate is based on the historical rate, which the Group expects to be zero.

The SPAC Class A Ordinary Shares and Warrants comprising the Units began separate trading on the 52nd day following the date of PLAO’s IPO. As of December 31, 2024, and December 31, 2023, 11,500,000 1,500,000 1.00

Redemption of Warrants when the price per SPAC Class A Ordinary Share equals or exceeds $ 18.00: