Company: MKDWW
Filing Date: 2025-03-13
Form Type: 424B4
Source: 0001493152-25-010187
Chunk: 135

Company: MKDWELL Tech Inc.
Filing Date: 2025-03-13
Form: 424B4
Chunk 135
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 contains customary representations and warranties, covenants, closing conditions, termination provisions and other terms relating to the mergers and the other transactions contemplated thereby. The Business Combination closed on July 31, 2024, as a result of which Cetus Capital’s securities were delisted from Nasdaq, and the Ordinary Shares and Warrants of MKDWELL Tech Inc., or the Company, commenced trading on Nasdaq.

Accounting for the Business Combination

In relation to the Business Combination, MKD BVI was determined to be the accounting acquirer and Cetus Capital was the accounting acquiree. This determination was primarily based on the current shareholders of MKD BVI having a majority of the voting power of the post-combination company. The transaction will be similar to that of a capital infusion as the only significant pre-combination asset of Cetus Capital is the cash in the Trust Account. No intangibles or goodwill will arise through the accounting for the transaction. The accounting is the equivalent of MKD BVI issuing shares, warrants and rights for the net monetary assets of Cetus Capital.

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Basis of Pro Forma Presentation

The historical financial information has been adjusted to give pro forma effect to events that are related and/or directly attributable to the transactions, which is prepared in accordance with Article 11 of Regulation S-X.

The unaudited pro forma condensed combined financial information is for illustrative purposes only. The financial results may have been different had the companies always been combined. You should not rely on the unaudited pro forma condensed combined financial information as being indicative of the historical financial position and results that would have been achieved had the companies always been combined or the future financial position and results that the post-combination company will experience. MKD BVI and Cetus Capital did not have any historical relationship prior to the Business Combination. Accordingly, no pro forma adjustments were required to eliminate activities between the companies.

As a result of the Business Combination and immediately following the closing of the Business Combination, after considering the actual redemption of 5,719,947 shares as of July 31, 2024 (prior to giving effect to any warrant exercises and assuming automatic conversion of rights into ordinary shares), the former shareholders of MKD BVI own approximately 82.5% of the outstanding Ordinary Shares of the Company and the former shareholders of Cetus Capital own approximately 17.5% of the outstanding Ordinary Shares of the Company, such percentages calculated based on the issuance of 13,855,239 Ordinary