Company: PCAP
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001213900-25-074297
Chunk: 22

Company: ProCap Acquisition Corp
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 liquidity in capital markets.

Any of the above mentioned factors, or any other
negative impact on the global economy, capital markets or other geopolitical conditions resulting from the Russian invasion of Ukraine,
the escalation of the Israel-Hamas conflict and subsequent sanctions or related actions, could adversely affect the Company’s search
for an initial Business Combination and any target business with which the Company may ultimately consummate an initial Business Combination.

12

PROCAP ACQUISITION CORP

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2025

(Unaudited) 

Registration Rights

The holders of the founder shares, Private Placement
Warrants and the Class A ordinary shares underlying such Private Placement Warrants and warrants that may be issued upon conversion
of the Working Capital Loans will have registration rights to require the Company to register for resale of any of the Company’s
securities held by them and any other securities of the Company acquired by them prior to the consummation of the initial Business Combination
pursuant to a registration rights agreement to be signed prior to or on the effective date of the Initial Public Offering. The holders
of these securities are entitled to make up to three demands, excluding short form demands, that the Company registers such securities.
In addition, the holders have certain piggy-back registration rights with respect to registration statements filed subsequent to the completion
of the initial Business Combination. The Company will bear the expenses incurred in connection with the filing of any such registration
statements.

Underwriting Agreement

The underwriters have a 45-day option from the
date of the Initial Public Offering to purchase up to an additional 3,300,000 units to cover over-allotments, if any. On May 22,
2025, the underwriters partially exercised the over-allotment option to purchase an additional 3,000,000 Units. The underwriters have
45 days from the date of the Initial Public Offering to purchase the remaining 300,000 Units. The remaining over-allotment option expired
on July 6, 2025, as it remained unexercised (see Note 9).

The underwriters were entitled to a cash underwriting
discount of $2,200,000 (1.0% of the gross proceeds of the units offered in the Initial Public Offering), which was paid at the closing
of the Initial Public Offering. Additionally, the underwriters were entitled to a deferred underwriting discount of $11,250,000 (4.50