Company: SPEG
Filing Date: 2025-06-26
Form Type: S-1/A
Source: 0001213900-25-058468
Chunk: 279

Company: Silver Pegasus Acquisition Corp.
Filing Date: 2025-06-26
Form: S-1/A
Chunk 279
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 investors provide to the registered holders written instructions to exchange the Class B.2 private placement warrants as provided in clause (iii), the registered holders will exchange the warrants in accordance with those instructions. The “Market Price” of the Class A ordinary shares as of any date shall mean an amount equal to the trading volume weighted average price of the Class A ordinary shares on the principal market on which the Class A ordinary shares then trade as of such date for the ten (10) trading days immediately preceding such date. By way of illustration, if a non -managingsponsor investor exchanges Class B.2 private placement warrants for Class A ordinary shares, and if the Market Price of the Class A ordinary shares as of the date of such exchange is $4.80 per Class A ordinary share, then the non -managingsponsor investor would receive 1/8 (one -eighth) 173

of a Class A ordinary share for each Class B.2 private placement warrant exchanged (i.e., $0.60, divided by $4.80). As such, such non -managingsponsor investor would receive one Class A ordinary share for every eight (8) Class B.2 private placement warrants held by it prior to the exchange. As the Market Price decreases, the non -managingsponsor would receive more Class A ordinary shares for no additional consideration. In contrast, the investor would receive one Class A ordinary share for an exercise price of $11.50 should it choose to exercise its Class B.2 private placement warrants for cash, regardless of the Market Price fluctuation. As such, the non -managingsponsor investors would be more likely to exchange Class B.2 private placement warrants when the Market Price is low and as a result, the public shareholders may experience significant dilution. In addition, the ability to exchange Class B.2 private placement warrants for Class A ordinary shares when the warrants are out of the money may also incentivize non -managingsponsor investors to vote their public shares, if any, in favor of a business combination even if the combined company may decline in value and be unprofitable for public shareholders after the business combination. The following chart sets forth further examples of how the Class B.2 private placement warrants could be exchanged for shares of common stock under different stock price scenarios:

| Share Price Post De-SPAC                                            |     | $ |  10.00 |     | $ |   8.50 |     | $ |   7.00