Company: SIMA
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026255
Chunk: 171

Company: SIM Acquisition Corp. I
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 171
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 of control of us by diluting the share ownership
or voting rights of a person seeking to obtain control of us; and

●may adversely affect prevailing market prices for our Class A Ordinary Shares and/or Warrants.

Similarly,
if we issue debt securities or otherwise incur significant debt to bank or other lenders or the owners of a target, it could result in:

●default and foreclosure on our assets if our operating revenues after an initial Business Combination
are insufficient to repay our debt obligations;

21

●acceleration of our obligations to repay the indebtedness even if we make all principal and interest payments
when due if we breach certain covenants that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation
of that covenant;

●our immediate payment of all principal and accrued interest, if any, if the debt security is payable on
demand;

●our inability to obtain necessary additional financing if the debt security contains covenants restricting
our ability to obtain such financing while the debt security is outstanding;

●using a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce
the funds available for expenses, capital expenditures, acquisitions and other general corporate purposes;

●limitations on our flexibility in planning for and reacting to changes in our business and in the industry
in which we operate;

●increased vulnerability to adverse changes in general economic, industry and competitive conditions and
adverse changes in government regulation; and

●limitations on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions,
debt service requirements, execution of our strategy and other purposes and other disadvantages compared to our competitors who have less
debt.

Pursuant
to the Amended and Restated Memorandum, if we are unable to complete the initial Business Combination by July 11, 2026 (or such earlier
time as determined by our Board) and an extension of the Combination Period is not otherwise approved by our shareholders, we will (i)
cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible, but not more than ten business days
thereafter, redeem 100% of the outstanding Public Shares at a per share price, payable in cash, equal to the aggregate amount then on
deposit in the Trust Account, including interest earned thereon (less taxes payable and up to $100,000 of interest income to pay dissolution
expenses) and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the remaining