Company: SIMA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076651
Chunk: 29

Company: SIM Acquisition Corp. I
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 payment of all
principal and accrued interest, if any, if the debt security is payable on demand;

●our inability to obtain necessary
additional financing if the debt security contains covenants restricting our ability to obtain such financing while the debt security
is outstanding;

17

●using a substantial portion
of our cash flow to pay principal and interest on our debt, which will reduce the funds available for expenses, capital expenditures,
acquisitions and other general corporate purposes;

●limitations on our flexibility
in planning for and reacting to changes in our business and in the industry in which we operate;

●increased vulnerability to adverse
changes in general economic, industry and competitive conditions and adverse changes in government regulation; and

●limitations on our ability to
borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy and
other purposes and other disadvantages compared to our competitors who have less debt.

Pursuant to the Amended and
Restated Memorandum, if we are unable to complete the initial Business Combination by July 11, 2026 (24 months from the closing of
the Initial Public Offering) (or such earlier time as determined by our Board) and such Combination Period is not otherwise extended by
shareholders, we will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible,
but not more than ten business days thereafter, redeem 100% of the outstanding Public Shares at a per share price, payable in cash,
equal to the aggregate amount then on deposit in the trust account, including interest earned thereon (less taxes payable and up to $100,000
of interest income to pay dissolution expenses) and (iii) as promptly as reasonably possible following such redemption, subject to
the approval of the remaining shareholders and the Board, liquidate and dissolve. The Warrants will expire on liquidation of the Trust
Account and the holders of Warrants will receive no proceeds in connection with the liquidation. The holders of the Founder Shares will
not participate in any redemption distribution with respect to their Founder Shares.

In 2024, the SEC adopted additional
rules and regulations relating to SPACs. The 2024 SPAC Rules require, among other matters, (i) additional disclosures relating to SPAC
sponsors and related persons; (ii) additional disclosures relating to SPAC Business Combination transactions; (iii) additional disclosures
relating to dilution and to conflicts of interest