Company: PAII-WT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110840
Chunk: 74

Company: Pyrophyte Acquisition Corp. II
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 74
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 in the issuance of Class A ordinary shares on a greater than one-to-one basis upon conversion of the Class B
ordinary shares;

➤may subordinate the rights of holders of Class A ordinary
shares if preference shares are issued with rights senior to those afforded our Class A ordinary shares;

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➤could cause a change in control if a substantial number of
our Class A ordinary shares are issued, which may affect, among other things, our ability to use our net operating loss carry forwards,
if any, and could result in the resignation or removal of our present officers and directors;

➤may have the effect of delaying or preventing a change of
control of us by diluting the share ownership or voting rights of a person seeking to obtain control of us; and

➤may adversely affect prevailing market prices for our Class A
ordinary shares and/or warrants.

Similarly, if we issue debt securities or otherwise incur significant
debt to bank or other lenders or the owners of a target, it could result in:

➤default and foreclosure on our assets if our operating revenues
after an initial business combination are insufficient to repay our debt obligations;

➤acceleration of our obligations to repay the indebtedness
even if we make all principal and interest payments when due if we breach certain covenants that require the maintenance of certain financial
ratios or reserves without a waiver or renegotiation of that covenant;

➤our immediate payment of all principal and accrued interest,
if any, if the debt security is payable on demand;

➤our inability to obtain necessary additional financing if
the debt security contains covenants restricting our ability to obtain such financing while the debt security is outstanding;

➤using a substantial portion of our cash flow to pay principal
and interest on our debt, which will reduce the funds available for expenses, capital expenditures, acquisitions and other general corporate
purposes;

➤limitations on our flexibility in planning for and reacting
to changes in our business and in the industry in which we operate;

➤increased vulnerability to adverse changes in general economic,
industry and competitive conditions and adverse changes in government regulation; and

➤limitations on our ability to borrow additional amounts for
expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy and other purposes and other disadvantages
compared to our competitors who have less debt.

The registration statement for our initial public offering was declared
effective on July 16, 2025. On July 18, 202