Company: SPEG
Filing Date: 2025-06-20
Form Type: S-1/A
Source: 0001213900-25-055713
Chunk: 278

Company: Silver Pegasus Acquisition Corp.
Filing Date: 2025-06-20
Form: S-1/A
Chunk 278
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agingsponsor investor would receive 1/8 (one -eighth) of a Class A 173

ordinary share for each Class B.2 private placement warrant exchanged (i.e., $0.60, divided by $4.80). As such, such non -managingsponsor investor will receive one Class A ordinary share for eight (8) Class B.2 private placement warrants held by it prior to the exchange. As the Market Price decreases, the non -managingsponsor will receive more Class A ordinary shares for no additional consideration. In contrast, the investor will receive one Class A ordinary share for an exercise price of $11.50 should it choose to exercise its Class B.2 private placement warrants for cash, regardless of the Market Price fluctuation. As such, the non -managingsponsor investors will be more likely to exchange Class B.2 private placement warrants when the Market Price is low and as a result, the public shareholders may experience significant dilution. In addition, the ability to exchange Class B.2 private placement warrants for Class A ordinary shares when the warrants are out of the money may also incentivize non -managingsponsor investors to vote their public shares, if any, in favor of a business combination even if the combined company may decline in value and be unprofitable for public shareholders after the business combination. The following chart sets forth further examples of how the Class B.2 private placement warrants could be exchanged for shares of common stock under different stock price scenarios:

| Share Price Post                                   
 De-SPAC                                            |     | $ |  10.00 |     | $ |   8.50 |     | $ |   7.00 |     | $ |    5.50 |     | $ |    4.80 |     | $ |    4.00 |     | $ |    2.50 |     | $ |    1.00 |
| Number of shares                                   
 of Common Stock Issuable per B.2 Warrant           |     |   |     17 |     |   |     14 |     |   |     12 |     |   |       9 |     |   |       8 |     |   |       7 |     |   |       4 |     |   |       2 |
| Maximum number of shares issuable for B.2 Warrants |     |   | 60,000 |     |   |