Company: SPEG
Filing Date: 2025-05-20
Form Type: S-1/A
Source: 0001213900-25-045972
Chunk: 274

Company: Silver Pegasus Acquisition Corp.
Filing Date: 2025-05-20
Form: S-1/A
Chunk 274
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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 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 172 ordinary share for each 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) 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 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 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. In connection with a business combination we may need to seek the forfeiture, transfer, exchange or amendment of the terms of Class B.2 private placement warrants, in which case we will need to obtain the consent of the holders of the sponsor membership interest representing a majority of the Class B.2 private placement warrants. If we are unable to obtain such consent, our ability to complete a business combination may be negatively impacted. If the Class B.2 private placement warrants are transferred to someone other than the non -man