Company: SIMA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026255
Chunk: 308

Company: SIM Acquisition Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 308
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We have not selected any Business Combination target. We may pursue an initial Business Combination in any business or industry, but are
focusing on companies in the healthcare industry. We intend to effectuate our initial Business Combination using cash from the proceeds
of the Initial Public Offering and the Private Placement, the proceeds of the sale of our Ordinary Shares in connection with our initial
Business Combination (pursuant to any forward purchase agreements or backstop agreements into which we may enter), Ordinary Shares issued
to the owners of the target, debt issued to bank or other lenders or the owners of the target, other securities issuances, or a combination
of the foregoing.

The
issuance of additional Ordinary Shares in connection with a Business Combination to the owners of the target or other investors:

●may significantly dilute the equity interest of investors in the Initial Public Offering, which dilution
would increase if the anti-dilution provisions in the Class B Ordinary Shares resulted in the issuance of Class A Ordinary Shares on a
greater than one-to-one basis upon conversion of the Class B Ordinary Shares;

●may subordinate the rights of holders of Class A Ordinary Shares if preference shares are issued with
rights senior to those afforded our Class A Ordinary Shares;

●could cause a change in control if a substantial number of our Class A Ordinary Shares are issued, which
may affect, among other things, our ability to use our net operating loss carry forwards, if any, and could result in the resignation
or removal of our present officers and directors;

●may have the effect of delaying or preventing a change of control of us by diluting the share ownership
or voting rights of a person seeking to obtain control of us; and

●may adversely affect prevailing market prices for our Class A Ordinary Shares and/or Warrants.

Similarly,
if we issue debt securities or otherwise incur significant debt to bank or other lenders or the owners of a target, it could result in:

●default and foreclosure on our assets if our operating revenues after an initial Business Combination
are insufficient to repay our debt obligations;

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●acceleration of our obligations to repay the indebtedness even if we make all principal and interest payments
when due if we breach certain covenants that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation
of that covenant;

●our immediate payment of all principal and accrued interest, if any, if the debt security is payable on
demand;

●our inability to obtain necessary additional financing if the debt security contains covenants