Company: PAII-WT
Filing Date: 2025-05-29
Form Type: DRS
Source: 0001213900-25-049013
Chunk: 132

Company: Pyrophyte Acquisition Corp. II
Filing Date: 2025-05-29
Form: DRS
Chunk 132
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target business than would be the case if our sponsor had paid the same per share price for the founder shares as our public shareholders paid for their public shares. This dilution would increase to the extent that the anti -dilutionprovisions of the founder shares result in the issuance of Class A ordinary shares on a greater than one -to-onebasis upon conversion of the founder shares at the time of our initial business combination and would become exacerbated to the extent that public shareholders seek redemptions from the trust for their public shares. In addition, because of the anti -dilutionprotection in the founder shares, any equity or equity -linkedsecurities issued in connection with our initial business combination would be disproportionately dilutive to our Class A ordinary shares. The value of the founder shares following completion of our initial business combination is likely to be substantially higher than the nominal price paid for them, even if the trading price of our ordinary shares at such time is substantially less than $10.00 per public share. Upon the closing of this offering and assuming no exercise of the over -allotmentoption, our sponsor will have invested in us an aggregate of $5,075,000, comprised of the $25,000 purchase price for the founder shares and the $3,500,000 purchase price for the private placement warrants. Assuming a trading price of $10.00 per public share upon consummation of our initial business combination, the 6,309,524 founder shares would have an aggregate implied value of $7.02. Even if the trading price of our ordinary shares were as low as $0.80 per share, and the private placement warrants are worthless, the value of the founder shares would be equal to our sponsor’s aggregate initial investment in us. As a result, our sponsor is likely to be able to make a substantial profit on its investment in us at a time when our public shares have lost significant value. Accordingly, members of our management team, who own interests in our sponsor, may

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| Risk factors |

be more willing to pursue a business combination with a riskier or less -establishedtarget business than would be the case if our sponsor had paid the same per share price for the founder shares as our public shareholders paid for their public shares. The determination of the offering price of our units and the size of this offering is more arbitrary than the pricing of securities and size of an offering of an operating company in a particular industry. You may have less assurance, therefore, that the offering