Company: PAII-WT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110840
Chunk: 86

Company: Pyrophyte Acquisition Corp. II
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 86
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 our initial business combination.
We have not selected any business combination target and we have not, nor has anyone on our behalf, initiated any substantive discussions,
directly or indirectly, with any business combination target. We may pursue an initial business combination in any business or industry
and in any geographic region but expect to target companies that are in the energy sector that constitute critical links in the supply
chain for, and/or service, the growing segments from the full spectrum of the energy ecosystem. Specifically, we seek to focus on differentiated
targets that provide critical minerals and materials, equipment, and/or technologies that support the span of energy solutions from traditional
to renewable energy.

We intend to effectuate our initial business combination using cash
from the proceeds of the initial public offering and the private placement of the private placement warrants, the proceeds of the sale
of our shares in connection with our initial business combination (pursuant to forward purchase agreements or backstop agreements we may
enter into following the consummation of the initial public offering or otherwise), 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 or other sources.

The issuance of additional 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;

20

➤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