Company: PAII-WT
Filing Date: 2025-09-02
Form Type: 10-Q
Source: 0001213900-25-083487
Chunk: 29

Company: Pyrophyte Acquisition Corp. II
Filing Date: 2025-09-02
Form: 10-Q
Item: Item 8
Chunk 29
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➤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.

The registration statement for our initial public offering was declared
effective on July 16, 2025. On July 18, 2025, we consummated the public offering of 20,041,150 units (the “Units”), at $10.00
per Unit, generating gross proceeds of $200,411,500, and incurring transaction costs of approximately $12.8 million, consisting of $2.6
million of upfront underwriting fees, approximately $9.4 million of deferred underwriting fees and approximately $740,000 of other offering
costs.

21

Simultaneously with the consummation of the initial public offering,
we consummated the sale of 5,050,000 private placement warrants (the “Private Placement Warrants”) at a price of $1.00 per
Private Placement Warrant in a private placement to our sponsor, generating gross proceeds of $5,050,000 (the “Private Placement”).

On July 24, 2025, the underwriters of the initial public offering (the
“Underwriters”) partially exercised their over-allotment option to purchase an additional 2,541,150 units at a purchase price
of $10.00 per Unit, generating additional gross proceeds of $25,411,500. The Underwriters forfeited their option to purchase an additional
83,850 units.

Approximately $200,411,500 ($10.00 per Unit) of the net proceeds of
the initial public offering (including approximately $9.4 million of the Underwriters’ deferred discount) and certain of the proceeds
of the Private Placement were placed in a trust account (the “Trust Account”) located in the United States with the Continental
Stock Transfer & Trust Company, and invested only in U.S. “government securities,” within the