Company: BCG
Filing Date: 2025-09-03
Form Type: POS AM
Source: 0001410578-25-001926
Chunk: 163

Company: Binah Capital Group, Inc.
Filing Date: 2025-09-03
Form: POS AM
Chunk 163
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 the business interest expense limitation. We are currently assessing the Act’s impact on our consolidated financial statements.

F-13

| 3. | MERGER AND RECAPITALIZATION |

Upon the consummation of the Business Combination, (i) the holders of shares of KWAC’s common stock (“KWAC Common Stock”) issued and outstanding immediately prior to the effective time of the Business Combination (other than any redeemed shares) receivedoneshare of common stock of Holdings (“Holdings Common Stock”) in exchange for each share of KWAC Common Stock held by them, subject to adjustment as more fully described herein, (ii)1,100,000shares of Holdings Common Stock issued to Sponsorwasplaced by Holdings into an escrow account andwillnotbereleased totheSponsor unless the dollar volume-weighted average price of Holdings Common Stock exceeds$ 12.00fortrading days within any-day trading period during theperiod following the consummation of the Business Combination, (iii) the holders of each whole warrant to purchase KWAC Class A Common Stock receivedonewarrant to purchase Holdings Common Stock at an exercise price of$ 11.50per share, (iv)12million shares of Holdings Common Stock, subject to adjustment as more fully described herein,wasissued to the equity holders of Wentworth in proportion to their ownership interests in Wentworth, (v) an additional1,100,000shares of Holdings Common Stockwasissued to certain equity holders of BMS, (vi)3,084,450KWAC Private Placement Warrants held by Sponsorwereforfeited immediately prior to the effective time of the Business Combination, and (vii)3,084,450warrants to purchase Holding Common Stock at an exercise price of$ 11.50per sharewereissued to the equity holders of BMS in proportion to their ownership interests in BMS. As a result of the Business Combination, BMS became an indirect, wholly-owned subsidiary of Holdings.

Additionally,on the Closing Date, Holdings entered into a Subscription Agreement with an investor for thepurchaseof1,500,000shares of Holdings’ Series ARedeemableConvertible Preferred Stock (the “Holdings Series A Stock”) in a private placement at$ 9.60per share, for an aggregate purchase price of$ 14.4million (the “Series A PIPE”). The Holdings Series A Stock may be converted into shares of Holdings Common Stock after the second anniversary of the closing of the Series A PIPE, which such conversion shall initially be1