Company: IPCX
Filing Date: 2025-01-16
Form Type: S-1/A
Source: 0001213900-25-003974
Chunk: 173

Company: Inflection Point Acquisition Corp. III
Filing Date: 2025-01-16
Form: S-1/A
Chunk 173
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 “Management — Executive Officer and Director Compensation” and “Certain Relationships and Related Party Transactions.”

110

Members of our management team will directly or indirectly own founder shares and/or private placement units following this offering and, accordingly, may have a conflict of interest in determining whether a particular target business is an appropriate business with which to effectuate our initial business combination and in negotiating or accepting the terms of the transaction because of their financial interest in completing an initial business combination within the completion window. The low price that our sponsor and management team (directly or indirectly) paid for the founder shares creates an incentive whereby they could potentially make a substantial profit even if we select an acquisition target that subsequently declines in value and is unprofitable for public shareholders. If we are unable to complete our initial business combination within the completion window, the founder shares and private placement units may expire worthless, except to the extent they entitle the holders thereof to receive liquidating distributions from assets outside the trust account, which could create an incentive for our sponsor, officers and directors to complete a transaction even if we select an acquisition target that subsequently declines in value and is unprofitable for public shareholders. Similarly, additional conflicts of interests may arise and incentives may be created to select an acquisition target that subsequently declines in value and is unprofitable for public shareholders instead of not consummating a business combination if (i) after the redemption of public shareholders no assets are available outside of the trust account to repay any loans extended to us by our sponsor, affiliates of our sponsor or our officers and directors and to reimburse our sponsor and others for any out -of -pocketexpenses incurred in connection with identifying, investigating and completing an initial business combination or (ii) not consummating a business combination within the allotted time may require service providers to forfeit their fees. Further, each of our officers and directors may have a conflict of interest with respect to evaluating a particular business combination if the retention or resignation of any such officers or directors were to be included by a target business as a condition to any agreement with respect to our initial business combination. Pursuant to written agreements to be entered with us, each of our sponsor, management team and Cantor Fitzgerald & Co. will agree to restrictions on its, his or her ability to transfer, assign, or sell founder shares and private placement units, as summarized in the table below. For more information on non -contractualresale restrictions, also see “ Securities Eligible for Future Sale — Rule 144,” “Securities Eligible for Future Sale