Company: SPEG
Filing Date: 2025-05-20
Form Type: S-1/A
Source: 0001213900-25-045972
Chunk: 16

Company: Silver Pegasus Acquisition Corp.
Filing Date: 2025-05-20
Form: S-1/A
Chunk 16
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 over -allotmentoption. The non -managingmember will have an economic interest in 1,333,333 Class B ordinary shares, which shares are not subject to forfeiture. (2)2,000,000 private placement warrants (1,000,000 Class B.1 private placement warrants and 1,000,000 Class B.2 private placement warrants) will be issued to the sponsor in private placements that will close simultaneously with the closing of this offering, of which the non -managingsponsor investors will acquire indirectly, through membership interests in the sponsor, the 1,000,000 Class B.2 private placement warrants (whether or not the over -allotmentoption is exercised), at a price of $1.00 per Class B.2 private placement warrant ($1,000,000 in the aggregate), which would result in them having an economic interest of 31% of the private placement warrants. The low price that our sponsor, executive officers and directors (directly or indirectly) paid for the founder shares creates an incentive whereby our officers and directors 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, or by such earlier liquidation date as our board of directors may approve, the founder shares and the private placement warrants will be worthless, except to the extent they receive liquidating distributions from assets outside the trust account. Because our sponsor acquired the founder shares at a nominal price, our public shareholders will incur immediate and substantial dilution upon the closing of this offering, assuming no value is ascribed to the private placement warrants. Further, the Class A ordinary shares issuable in connection with the conversion of the rights may result in material dilution to our public shareholders. If we raise additional funds through equity or convertible debt issuances, our public shareholders may suffer significant dilution. This dilution would increase to the extent that the anti -dilutionprovision of the founder shares result in the issuance of Class A ordinary shares on a greater than one -to-onebasis upon conversion of the founder shares at the time of our initial business combination pursuant to the anti -dilutionrights described above. See the sections titled “Summary — The Offering — Founder Shares Conversion and Anti -Dilution Rights,” “Risk Factors — Risks Relating to our Securities — The nominal purchase price paid by our sponsor for the founder shares may result in significant dil