Company: PCAP
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001213900-25-108209
Chunk: 7

Company: ProCap Acquisition Corp
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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 deposit accounts at a bank, or invested only in U.S. government treasury
obligations with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the
Investment Company Act, which invest only in direct U.S. government treasury obligations; the holding of these assets in this form
is intended to be temporary and for the sole purpose of facilitating the intended Business Combination. To mitigate the risk that might
be deemed to be an investment company for purposes of the Investment Company Act, which risk increases the longer that the Company holds
investments in the Trust Account, the Company may, at any time (based on management team’s ongoing assessment of all factors related
to the potential status under the Investment Company Act), instruct the trustee to liquidate the investments held in the Trust Account
and instead to hold the funds in the Trust Account in cash or in an interest bearing demand deposit account at a bank. Except with respect
to interest earned on the funds held in the Trust Account that may be released to the Company to pay its taxes, if any, the proceeds from
the Initial Public Offering and the sale of the Private Placement Units will not be released from the Trust Account until the earliest
of (i) the completion of the Company’s initial Business Combination, (ii) the redemption of the Company’s public
shares if the Company is unable to complete the initial Business Combination within 24 months from the closing of the Initial Public
Offering or by such earlier liquidation date as our board of directors may approve (the “Completion Window”), subject to applicable
law, or (iii) the redemption of the Company’s public shares properly submitted in connection with a shareholder vote to amend
the Company’s amended and restated memorandum and articles of association to (A) modify the substance or timing of the Company’s
obligation to allow redemption in connection with the initial Business Combination or to redeem 100% of the Company’s public shares
if the Company has not consummated an initial Business Combination within the Completion Window or (B) with respect to any other
material provisions relating to shareholders’ rights or pre-initial Business Combination activity. The proceeds deposited in the
Trust Account could become subject to the claims of the Company’s creditors, if any, which could have priority over the claims of
the Company’s public shareholders.

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PROCAP ACQUISITION CORP

NOTES TO FINANCIAL STATE