Company: DMAAR
Filing Date: 2025-01-14
Form Type: POS AM
Source: 0001213900-25-003137
Chunk: 97

Company: Drugs Made In America Acquisition Corp.
Filing Date: 2025-01-14
Form: POS AM
Chunk 97
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 trading price of our ordinary shares significantly declines, the value of the founder shares held by our sponsor will be significantly greater than the amount our sponsor paid to purchase such shares. In addition, our sponsor could potentially recoup its entire investment in our company even if the trading price of our ordinary shares after the initial business combination is as low as $0.47 per share. As a result, our sponsor is likely to earn a substantial profit on its investment in us upon disposition of its ordinary shares even if the trading price of our ordinary shares declines after we complete our initial business combination.

62 Our sponsor may therefore be economically incentivized to complete an initial business combination with a riskier, weaker -performingor less -establishedtarget business than would be the case if our sponsor had paid the same per share price for the founder shares as our public shareholders paid for their public shares. The non -managingsponsor investors will share in any appreciation of the founder shares through their membership interests in the sponsor if we successfully complete a business combination. Accordingly, non -managingsponsor investors’ interests in the founder shares owned by them indirectly through their membership interests in the sponsor may provide them with an incentive to vote any public shares they own in favor of a business combination, and make a substantial profit on such interests, even if the business combination is with a target that ultimately declines in value and is not profitable for other public shareholders. Since our initial shareholders and any other holder of our founder shares, including any non-managing sponsor investors, will lose their entire investment in us if our initial business combination is not completed, a conflict of interest may arise in determining whether a particular business combination target is appropriate for our initial business combination. Our sponsor purchased an aggregate of 9,857,143 founder shares for an aggregate purchase price of $35,000, or approximately $0.0036 per share. Our sponsor will own 30% of our issued and outstanding ordinary shares after this offering (not including the private units and the representative shares and assuming it does not purchase any units in this offering). Our initial shareholders and members of our board of directors acquired founder shares for approximately $0.0036 per share and we are offering units at a price of $10.00 per unit in this offering; as a result, our initial shareholders and members of our board of directors could make a substantial profit (approximately $98.6 million with respect to the founder shares if the founder shares were to be sold at $10.00 per share, the initial public offering