Company: SIMA
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-109984
Chunk: 73

Company: SIM Acquisition Corp. I
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 73
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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;

●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;

17

●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 restricting our ability to obtain such financing
while the debt security is outstanding;

●using
a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for expenses,
capital expenditures, acquisitions and other general corporate purposes;

●limitations
on our flexibility in planning for and reacting to changes in our business and in the industry in which we operate;

●increased
vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation;
and

●limitations
on our ability to borrow additional amounts for expenses, capital