Company: PCAP
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001213900-25-074297
Chunk: 106

Company: ProCap Acquisition Corp
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 106
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tariffs or the threat of tariffs that may have a material impact on that target’s business, and it may be costly or impractical
for us to terminate that Business Combination agreement. These factors could affect our selection of a Business Combination target.

We may not be able to adequately address the risks
presented by these tariffs or other potential trade policy changes. As a result, we may deem it costly, impractical or risky to complete
an initial Business Combination with a particular target or with a target in a particular industry or from a particular country. Consequently,
the pool of potential target companies may be reduced, which could impair our ability to identify a suitable target and to complete an
initial Business Combination. If we complete an initial Business Combination with such a target, the post-Business Combination company’s
operations and financial results could be adversely affected as a result of tariffs or changes to trade policies, which may cause the
market value of the securities of the post-Business Combination company to decline.

21

Item 2. Unregistered Sales of Equity Securities
and Use of Proceeds.

Unregistered Sales of Equity Securities

On May 22, 2025, the Company consummated the Initial
Public Offering of 25,000,000 Units, which includes the partial exercise by the underwriters of their over-allotment option in the amount
of 3,000,000 Units, at $10.00 per Unit, generating gross proceeds of $250,000,000. The securities sold in the offering were registered
under the Securities Act on registration statement on Form S-1 (Nos. 333-286876 and 333-287454). The SEC declared the registration
statement effective on May 20, 2025.

Simultaneously with the closing of the Initial
Public Offering, the Company consummated the sale of 430,000 Private Placement Units at a price of $10.00 per Private Placement Unit,
in a private placement to the Sponsor, generating gross proceeds to the Company of $4,300,000. The Private Placement Units (and underlying
securities) are identical to the Units sold in the Initial Public Offering, except as otherwise disclosed in our IPO Registration Statement.
No underwriting discounts or commissions were paid with respect to such sale. The issuance of the Private Placement Units was made pursuant
to the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended.

Use of Proceeds

Following the