Company: TACOW
Filing Date: 2025-04-18
Form Type: S-1/A
Source: 0001829126-25-002771
Chunk: 75

Company: Berto Acquisition Corp.
Filing Date: 2025-04-18
Form: S-1/A
Chunk 75
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 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.

Pursuant to the trust
agreement, we may only hold the funds in the trust account uninvested as cash, in an interest-bearing or non-interest-bearing demand
deposit account at a U.S. chartered commercial bank with consolidated assets of $100 billion or more selected by the trustee that is
reasonably satisfactory to us, or in U.S. government securities, within the meaning of Section 2(a)(16) of the Investment Company Act,
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 2a-7 under the Investment Company Act. U.S. government treasury obligations are considered “securities”
for purposes of the Investment Company Act, while cash is not. As noted above, one of the factors the SEC identified as relevant to the
determination of whether a SPAC which holds securities could potentially be deemed an “investment company” under the Investment
Company Act is the SPAC’s duration. To mitigate the risk of us being deemed to be an unregistered investment company (including
under the subjective test of Section 3(a)(1)(A) of the Investment Company Act) and thus subject to regulation under the Investment
Company Act, we may, at any time, instruct Continental Stock Transfer & Trust Company, the trustee with respect