Company: SIMA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076651
Chunk: 28

Company: SIM Acquisition Corp. I
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 28
---
 Islands exempted company and formed for the purpose of effecting a Business Combination. We have not selected
any Business Combination target. We may pursue an initial Business Combination in any business or industry, but are focusing on companies
in the healthcare industry. We intend to effectuate our initial Business Combination using cash from the proceeds of the Initial Public
Offering and the Private Placement, the proceeds of the sale of our shares in connection with our initial Business Combination (pursuant
to any 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.

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;

●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;

●our immediate