Company: SPEG
Filing Date: 2025-06-20
Form Type: S-1/A
Source: 0001213900-25-055713
Chunk: 4

Company: Silver Pegasus Acquisition Corp.
Filing Date: 2025-06-20
Form: S-1/A
Chunk 4
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ii) will not be subject to any forfeiture, transfer, exchange or amendment of the terms in connection with the business combination without the consent of the non -managingsponsor investors; and (iii) for a period beginning on the closing date of the Company’s initial business combination and ending on the expiration date of the Class B.2 private placement warrants, the holders of the Class B.2 private placement warrants shall have the right, but not the obligation, to exchange any of their Class B.2 private placement warrants for a number of Class A Shares equal to the quotient obtained by dividing (x) $0.60 by (y) the Market Price (as defined in the next sentence) of the Class A ordinary shares as of the date of such exchange, as more fully described in this prospectus. 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. For example: if a non -managingsponsor investor makes an exchange of Class B.2 private placement warrants, 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 shares, then the non -managingsponsor investor would receive 1/8 (one -eighth) 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 will receive one Class A ordinary share for eight (8) Class B.2 private placement warrants held by it prior to the exchange. As the Market Price decreases, the non -managingsponsor will receive more Class A ordinary shares for no additional consideration. In contrast, the investor will 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 will 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