Company: TACOW
Filing Date: 2025-03-21
Form Type: S-1
Source: 0001829126-25-001978
Chunk: 78

Company: Berto Acquisition Corp.
Filing Date: 2025-03-21
Form: S-1
Chunk 78
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 we would either register as an investment company or wind down and abandon our efforts to complete an initial business combination
and instead liquidate the company. As a result, our public shareholders may only receive their pro rata portion of the funds in the trust
account that are available for distribution to public shareholders and would be unable to realize the potential benefits of an initial
business combination, including the possible appreciation of the combined company’s securities.

To mitigate the risk that we might be deemed to be an investment company for purposes of the Investment Company Act, we may, at any time, instruct the trustee to liquidate the securities held in the trust account and instead to hold the funds in the trust account in cash until the earlier of the consummation of our initial business combination or our liquidation. As a result, following the liquidation of securities in the trust account, the interest earned on the funds held in the trust account may be materially reduced, which would reduce the dollar amount our public shareholders would receive upon any redemption or liquidation of the company.

We intend to initially hold
the funds in the trust account as cash, including in an interest bearing bank demand deposit account or other accounts at a bank, or
in U.S. government treasury obligations with a maturity of 185 days or less or in money market funds investing solely in U.S. government
treasury obligations and meeting certain conditions under Rule 2a-7 under the Investment Company Act. U.S. government treasury obligations
are considered “securities” for purposes of the Investment Company Act, while cash is not. As noted above, one of the factors
the SEC identified as relevant to the determination of whether a SPAC which holds securities could potentially be deemed an “investment
company” under the Investment Company Act is the SPAC’s duration. To mitigate the risk of us being deemed to be an unregistered
investment company (including under the subjective test of Section 3(a)(1)(A) of the Investment Company Act) and thus subject to
regulation under the Investment Company Act, we may, at any time, instruct Continental Stock Transfer & Trust Company, the trustee
with respect to the trust account, to liquidate the U.S. government treasury obligations or money market funds held in the trust account
and thereafter to hold all funds in the trust account in cash until the earlier of consummation of our initial business combination or
liquidation of the company. Following such liquidation, the rate of interest we receive on the funds held in the trust