Company: TACOW
Filing Date: 2025-04-15
Form Type: S-1/A
Source: 0001829126-25-002650
Chunk: 77

Company: Berto Acquisition Corp.
Filing Date: 2025-04-15
Form: S-1/A
Chunk 77
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Investment Company Act), such assets, other than cash, are “securities” for purposes of the Investment Company Act and, therefore,
nevertheless, there is a risk that we could be deemed an unregistered investment company and subject to the Investment Company Act at
any time. If our circumstances change over time, we will update our disclosure to reflect how such changes impact the risk that we may
be considered to be operating as an unregistered investment company.

In the adopting release for
the 2024 SPAC Rules (as defined below), the SEC provided guidance that a SPAC’s potential status as an “investment company”
depends on a variety of factors, such as a SPAC’s duration, asset composition, business purpose and activities and “is a
question of facts and circumstances” requiring individualized analysis. If we were deemed to be an unregistered investment company
and subject to compliance with and regulation under the Investment Company Act, we would be subject to additional regulatory burdens
and expenses for which we have not allotted funds. Unless we are able to modify our activities so that we would not be deemed an investment
company, we would either register as an investment company or wind down and abandon our efforts to complete an initial business combination
and instead liquidate the company. As a result, our public shareholders may only receive their pro rata portion of the funds in the trust
account that are available for distribution to public shareholders and would be unable to realize the potential benefits of an initial
business combination, including the possible appreciation of the combined company’s securities.

To mitigate the risk that we might be deemed to be an investment company for purposes of the Investment Company Act, we may, at any time, instruct the trustee to liquidate the securities held in the trust account and instead to hold the funds in the trust account in cash until the earlier of the consummation of our initial business combination or our liquidation. As a result, following the liquidation of securities in the trust account, the interest earned on the funds held in the trust account may be materially reduced, which would reduce the dollar amount our public shareholders would receive upon any redemption or liquidation of the company.

We intend to initially
hold the funds in the trust account as cash, including in an interest-bearing bank demand deposit account or other accounts at a bank,
or in U.S. government treasury obligations with a maturity of 185 days or less or in money market funds investing solely in U.S. government
treasury obligations and meeting certain conditions under Rule