Company: IPODW
Filing Date: 2025-03-07
Form Type: S-1
Source: 0001213900-25-021721
Chunk: 99

Company: Dune Acquisition Corp II
Filing Date: 2025-03-07
Form: S-1
Chunk 99
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’ interests in the founder shares owned by them indirectly through their membership interests in sponsor may provide them with an incentive to vote any public shares they own in favor of a business combination, and make a substantial profit on such interests, even if the business combination is with a target that ultimately declines in value and is not profitable for other public shareholders. Furthermore, so long as the NMSI private placement warrants are held, directly or indirectly (as a result of their ownership in membership interests of the sponsor), by non -managingsponsor investors, on the one -yearanniversary of the closing date of our initial business combination, each non -managingsponsor investor shall have the right, but not the obligation, to exchange any of its NMSI private placement warrants for a number of Class A ordinary shares equal to the quotient obtained by dividing (x) $0.50, by (y) the Market Price (as defined below) of the Class A ordinary shares as of the date of such exchange, subject to a cap of ¼ (one -quarter) of a Class A ordinary share per NMSI private placement warrant. By way of illustration, if a non -managingsponsor investor makes an exchange of NMSI private placement warrants, and if the Market Price of the Class A ordinary shares as of the date of such exchange is $4.00 per Class A ordinary share, then the non -managingsponsor investor would receive 1/8 (one -eighth) of a Class A ordinary share for each NMSI private placement warrant exchanged (i.e., $0.50, divided by $4.00). As such, such non -managingsponsor investor will receive one Class A ordinary share for eight (8) NMSI private placement warrants held by it prior to the exchange. As the Market Price decreases, the non -managingsponsor will receive more Class A ordinary shares for no additional consideration. In contrast, other investors will receive one Class A ordinary share for an exercise price of $11.50 should any such investors choose to exercise their warrants for cash, regardless of the Market Price fluctuation. As such, the non -managingsponsor investors will be more likely to exchange NMSI private placement warrants if the Market Price is low and as a result, the public shareholders may experience significant dilution. 70 The personal and financial interests of our sponsor, directors and officers and any holders of our founder shares or our private placement units may influence their motivation