Company: KII
Filing Date: 2025-12-09
Form Type: S-1/A
Source: 0001213900-25-119587
Chunk: 106

Company: K2 Capital Acquisition Corp
Filing Date: 2025-12-09
Form: S-1/A
Chunk 106
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 ordinary share would have an implied value of $6.85 per share upon completion of our initial business combination, representing an approximately 31.5% decrease from the initial implied value of $10.00 per public share. While the implied value of $6.85 per ordinary share upon completion of our initial business combination would represent a dilution to our public shareholders, this would represent a significant increase in value for our sponsor relative to the price it paid for each founder share. At $6.85 per ordinary share, the 4,588,839 ordinary shares that the initial shareholders would own upon completion of our initial business combination would have an aggregate implied value of approximately $31,433,549. As a result, even if the trading price of our ordinary shares significantly declines, the value of the founder shares held by our sponsor will be significantly greater than the amount our sponsor paid to purchase such shares. In addition, our sponsor could potentially recoup its entire investment in our company even if the trading price of our ordinary shares after the initial business combination is as low as $0.53 per share. As a result, our sponsor is likely to earn a substantial profit on its investment in us upon disposition of its ordinary shares even if the trading price of our ordinary shares declines after we complete our initial business combination.

68 Our sponsor may therefore be economically incentivized to complete an initial business combination with a riskier, weaker -performingor less -establishedtarget business than would be the case if our sponsor had paid the same per share price for the founder shares as our public shareholders paid for their public shares. The non -managingsponsor investors will share in any appreciation of the founder shares through their membership interests in the sponsor if we successfully complete a business combination. Accordingly, non -managingsponsor investors’ interests in the founder shares owned by them indirectly through their membership interests in the sponsor may provide them with an incentive to vote any public shares they own in favor of a business combination, and make a substantial profit on such interests, even if the business combination is with a target that ultimately declines in value and is not profitable for other public shareholders. The value of the founder shares following completion of our initial business combination is likely to be substantially higher than the nominal price paid for them, even if the trading price of our ordinary shares at such time is substantially less than $10.00 per public share. Upon the closing of this offering and assuming no exercise of the over -allotmentoption, our sponsor will have invested in us