Company: KII
Filing Date: 2025-09-18
Form Type: S-1
Source: 0001213900-25-088883
Chunk: 104

Company: K2 Capital Acquisition Corp
Filing Date: 2025-09-18
Form: S-1
Chunk 104
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 or otherwise, among the sponsor non -managingmembers, if such investors all elect to purchase the full amount of our units described herein and so long as they hold a substantial portion of the units purchased, our sponsor and the sponsor non -managingmembers would collectively own a significant number of our shares. Therefore, in the event that the sponsor non -managingmembers purchase the full amount of units described herein, continue to hold the shares included in the units and individually decide to vote such shares in favor of our initial business combination, we would not need any additional public shares sold in this offering to be voted in favor of our initial business combination to have our initial business combination approved. 68 Since our initial shareholders including any sponsor non-managing members and the Private Placement Investor, will lose their entire investment in us if our initial business combination is not completed, and because our sponsors, officers and directors and any other holder of our founder shares, including any sponsor non-managing members, directly or indirectly may profit substantially from a business combination as a result of their ownership of founder shares even under circumstances where our public shareholders would experience losses in connection with their investment, and because our sponsor will be issued restricted Class A shares (which would vest only upon the consummation of our initial business combination) at no additional cost (i.e., as a “sweetener”), a conflict of interest may arise in determining whether a particular business combination target is appropriate for our initial business combination, including in connection with the shareholder vote in respect thereto. Our initial shareholders currently own 4,928,571 founder shares. The number of founder shares issued was determined based on the expectation that such founder shares would represent 28% of the outstanding shares after this offering (excluding the private placement shares and restricted Class A shares). If we increase or decrease the size of this offering we will effect a capitalization or share repurchase or redemption or other appropriate mechanism, as applicable, with respect to our Class B ordinary shares immediately prior to the consummation of the offering in such amount as to maintain the ownership of our initial shareholders at 28% of the issued and outstanding ordinary shares upon the consummation of this offering. Our public shareholders may incur immediate and substantial dilution upon such adjustment. The founder shares will be worthless if we do not complete an initial business combination. Our Sponsor and the Private Placement Investor will subscribe to purchase an aggregate of 293,750 private placement units (or up to 303,125 private placement units if the underwriters’ over -allot