Company: TACOW
Filing Date: 2025-02-10
Form Type: DRS
Source: 0001829126-25-000836
Chunk: 74

Company: Berto Acquisition Corp.
Filing Date: 2025-02-10
Form: DRS
Chunk 74
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 to comply with such new and evolving laws and regulations have resulted in and are likely to continue to result in, increased general and administrative expenses and a diversion of management time and attention. Those laws and regulations and their interpretation and application may also change from time to time and those changes could have a material adverse effect on our business, investments and results of operations. In addition, a failure to comply with applicable laws or regulations, as interpreted and applied, could have a material adverse effect on our business, including our ability to negotiate and complete our initial business combination, and results of operations.

On January 24, 2024, the SEC issued final rules (the “2024 SPAC Rules”), effective as of July 1, 2024, that formally adopted
some of the SEC’s proposed rules for special purpose acquisition companies that were released on March 30, 2022. The 2024 SPAC Rules,
among other items, impose additional disclosure requirements in initial public offerings by special purpose acquisition companies and
business combination transactions involving special purpose acquisition companies and private operating companies; amend the financial
statement requirements applicable to business combination transactions involving such companies; update and expand guidance regarding
the general use of projections in SEC filings, as well as when projections are disclosed in connection with proposed business combination
transactions; increase the potential liability of certain participants in proposed business combination transactions; and could impact
the extent to which special purpose acquisition companies could become subject to regulation under the Investment Company Act. The 2024
SPAC Rules may materially adversely affect our business, including our ability to negotiate and complete, and the costs associated with,
our initial business combination, and results of operations.

Our shareholders may be held liable for claims by third parties against us to the extent of distributions received by them upon redemption of their shares.

If we are forced to enter into an insolvent liquidation, any distributions received by shareholders could be viewed as an unlawful payment if it was proved that immediately following the date on which the distribution was made, we were unable to pay our debts as they fall due in the ordinary course of business. As a result, a liquidator could seek to recover some or all amounts received by our shareholders. Furthermore, our directors may be viewed as having breached their fiduciary duties to us or our creditors and/or may have acted in bad faith, thereby exposing themselves and our company to claims, by paying public shareholders from the trust account prior to addressing the claims of creditors. We cannot assure you that claims will not be brought against us for