Company: TLGYF
Filing Date: 2025-09-29
Form Type: S-4
Source: 0001213900-25-092592
Chunk: 268

Company: TLGY ACQUISITION CORP
Filing Date: 2025-09-29
Form: S-4
Chunk 268
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 by merging TLGY with a validator business Company J had been incubating, and raising third -partycapital to fund the purchases of locked tokens from a crypto foundation. Company J’s founder suggested that he could reach out to a number of foundations on TLGY’s behalf to explore such a transaction. On January 17, 2025, an NDA was signed between TLGY and Company J to facilitate such further discussions. From late January to February 2025, Mr.Cho, Mr.Chen and the founder of Company J held numerous meetings and discussions to explore a potential transaction to create a digital asset treasury company. Key negotiating points included the valuation of Company J’s validator business, potential regulatory issues, transaction timing and costs, and which crypto foundations to approach. During these discussions, Mr.Chen expressed the view that Company J’s validator business should not be valued at more than $20 million given its pre -revenuestatus and that any higher valuation would likely be viewed unfavorably by PIPE investors who would view such a valuation as dilutive to their underlying digital asset treasury exposure. The founder of Company J, however, viewed the valuation as too low given Company J’s growth expectations for its validator business. The parties also discussed transaction costs and which party would bear such costs if the transaction fell through and other strategies for a potential transaction. To advance discussions, on February 4, 2025, TLGY proposed to Company J that the parties create a new digital asset treasury company through the merger of TLGY and Company J’s validator business and valued Company J’s validator business at $40 million, comprising $20 million upfront and $20 million in earnouts, with a $100 million PIPE to fund locked token purchases. Over the course of the month, Company J provided updates to TLGY regarding its outreach to various crypto foundations, including Foundation A, the foundation representing a Layer -1blockchain platform Company J had a significant investment in, and Foundation B, the foundation representing a Layer -1blockchain platform tied to a popular messaging platform, to gauge interest in a digital asset treasury transaction. Company J delayed making introductions between TLGY and these foundations as they preferred to negotiate terms directly with the foundations. On February 28, 2025, Mr.Chen met with the founder of Company J to express frustration on the lack of progress on the proposed transaction. As discussions with Company J stalled, TLGY began engaging directly with potential foundation partners. 110 On March 18, 2025, Joshua Yang, an advisor to