Company: PCAP
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001213900-25-108209
Chunk: 136

Company: ProCap Acquisition Corp
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 4
Chunk 136
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 material adverse effects on a post-Business
Combination company. Among other things, historical financial performance of companies affected by trade policies and/or tariffs may not
provide useful guidance as to the future performance of such companies, because future financial performance of those companies may be
materially affected by new U.S. tariffs or foreign retaliatory tariffs, or other changes to trade policies. The business prospects of
a particular target for a Business Combination could change even after we enter into a Business Combination agreement, as a result of
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.

Delays in the government budget process
or a government shutdown may materially adversely affect our ability to complete an initial business combination, or the operations of
the combined company following our initial business combination.

Each year, the U.S. Congress must pass all spending
bills in the federal budget. If any such spending bill is not timely passed, a government shutdown will close many federally run operations,
which includes those of the SEC, and halt work for federal employees unless they are considered essential. If a government shutdown were
to occur, and the SEC were to remain closed for a prolonged period of time, we may not be able to complete our initial business combination
within the time period as required by our amended and restated memorandum and articles of association (or such later date as may be approved
by our shareholders), particularly if the SEC is unable to timely review our filings, or those of a target business or other entity that
relate to our initial business combination, or to declare such filings effective as may be applicable.