Company: IPODW
Filing Date: 2025-03-07
Form Type: S-1
Source: 0001213900-25-021721
Chunk: 41

Company: Dune Acquisition Corp II
Filing Date: 2025-03-07
Form: S-1
Chunk 41
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 The NMSI private placement warrants shall be identical to the other private placement warrants, except that, so long as the NMSI private placement warrants are held, directly or indirectly (as a result of their ownership in membership interests of the sponsor), by non-managing sponsor investors, (i) the NMSI private placement warrants will be non-redeemable; (ii) the NMSI private placement warrants will not be subject to any forfeiture, transfer, exchange or amendment of the terms in connection with the business combination without the consent of the holders of the sponsor membership interest representing a majority of the NMSI                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

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|                                                      |     | private placement warrants; and (iii) on the one-year anniversary of the closing date of our initial business combination, each non-managing sponsor investors shall have the right, but not the obligation, to exchange any of its NMSI private placement warrants for a number of Class A ordinary shares equal to the quotient obtained by dividing (x) $0.50, by (y) the Market Price (as defined below) of the Class A ordinary shares as of the date of such exchange, subject to a cap of ¼ (one-quarter) of a Class A ordinary share per NMSI private placement warrant. By way of illustration, if a non-managing sponsor investor makes an exchange of NMSI private placement warrants, and if the Market Price of the Class A ordinary shares as of the date of such exchange is $4.00 per Class A ordinary share, then the non-managing sponsor investor would receive 1/8 (one-eighth) of a Class A ordinary share for each NMSI private placement warrant exchanged (i.e., $0.50, divided by $4.00). As such, such non-managing sponsor investor will receive one Class A ordinary share for eight (8) NMSI private placement warrants held by it prior to the exchange. As the Market Price decreases, the non-managing sponsor will receive more Class A ordinary shares for no additional consideration. In contrast, other investors will receive one Class A ordinary share for an exercise price of $11.50 should any such investors choose to exercise their warrants for cash, regardless of the Market Price fluctuation. As such, the non-managing sponsor investors will be more likely to exchange NMSI private placement warrants if the Market Price is low and as a result, the public shareholders may experience significant dilution. |
| Transfer restrictions on