Company: SIMA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076651
Chunk: 72

Company: SIM Acquisition Corp. I
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 72
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 and directors;

●may have the effect of delaying
or preventing a change of control of us by diluting the share ownership or voting rights of a person seeking to obtain control of us;
and

●may adversely affect prevailing
market prices for our Class A Ordinary Shares and/or Warrants.

Similarly, if we issue debt
securities or otherwise incur significant debt to bank or other lenders or the owners of a target, it could result in:

●default and foreclosure on our
assets if our operating revenues after an initial Business Combination are insufficient to repay our debt obligations;

●acceleration of our obligations
to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants that require the
maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant;

●our immediate payment of all
principal and accrued interest, if any, if the debt security is payable on demand;

●our inability to obtain necessary
additional financing if the debt security contains covenants restricting our ability to obtain such financing while the debt security
is outstanding;

17

●using a substantial portion
of our cash flow to pay principal and interest on our debt, which will reduce the funds available for expenses, capital expenditures,
acquisitions and other general corporate purposes;

●limitations on our flexibility
in planning for and reacting to changes in our business and in the industry in which we operate;

●increased vulnerability to adverse
changes in general economic, industry and competitive conditions and adverse changes in government regulation; and

●limitations on our ability to
borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy and
other purposes and other disadvantages compared to our competitors who have less debt.

Pursuant to the Amended and
Restated Memorandum, if we are unable to complete the initial Business Combination by July 11, 2026 (24 months from the closing of
the Initial Public Offering) (or such earlier time as determined by our Board) and such Combination Period is not otherwise extended by
shareholders, we will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible,
but not more than ten business days thereafter, redeem 100% of the outstanding Public Shares at a per share price, payable in cash,
equal to the aggregate amount then on deposit in the trust account, including interest earned thereon (less taxes payable and up to $100,000