Company: SIMA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026255
Chunk: 80

Company: SIM Acquisition Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 80
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 redemption plus any amount required to
satisfy cash conditions pursuant to the terms of the proposed initial Business Combination exceed the aggregate amount of cash available
to us, we will not complete the initial Business Combination or redeem any Public Shares, and all Public Shares submitted for redemption
will be returned to the holders thereof. We may, however, raise funds through the issuance of equity or equity-linked securities or through
loans, advances or other indebtedness in connection with our initial Business Combination, including pursuant to any forward purchase
agreements or backstop arrangements into which we may enter, in order to, among other reasons, satisfy such net tangible assets or minimum
cash requirements.

Limitation on Redemption Upon Completion
of Our Initial Business Combination if We Seek Shareholder Approval

If we seek shareholder approval
of our initial Business Combination and we do not conduct redemptions in connection with our initial Business Combination pursuant to
the tender offer rules, our Amended and Restated Memorandum provides that a Public Shareholder, together with any affiliate of such shareholder
or any other person with whom such shareholder is acting in concert or as a “group” (as defined under Section 13 of the Exchange
Act), will be restricted from redeeming its Public Shares with respect to more than an aggregate of 15% of the Public Shares sold
in the Initial Public Offering (“Excess Shares”), without our prior consent. We believe this restriction will discourage Public
Shareholders from accumulating large blocks of Public Shares, and subsequent attempts by such Public Shareholders to use their ability
to exercise their redemption rights against a proposed Business Combination as a means to force us or our Management to purchase their
Public Shares at a significant premium to the then-current market price or on other undesirable terms. Absent this provision, a Public
Shareholder holding more than an aggregate of 15% of the Public Shares sold in the Initial Public Offering could threaten to exercise
its redemption rights if such Public Shareholder’s Public Shares are not purchased by us, our Sponsor or our Management at a premium
to the then-current market price or on other undesirable terms. By limiting our Public Shareholders’ ability to redeem no more than
15% of the Public Shares sold in the Initial Public Offering without our prior consent, we believe we are limiting the ability of a small
group of shareholders to unreasonably attempt to block our ability to complete our initial Business Combination, particularly in connection
with a Business Combination with a target that requires as a closing condition that we have a minimum net